Sky-high opportunities in Queen St landmark
One of Auckland’s most recognisable buildings, strategically located in the heart of the CBD with outstanding growth potential, is for sale.
The nine-level Skyworld entertainment centre sits at 291-297 Queen St and provides approximately 16,000sq m of total net lettable area on a 3486sq m freehold site zoned Business–City Centre under the Auckland Unitary Plan.
The property hosts a food and beverage and entertainment facility that is anchored by the ASX-listed Event Cinema, the premier cinema offering in central Auckland and home to IMAX, New Zealand’s biggest cinema screen. This part of the property also houses other tenants GameOn and the popular Metrolanes bowling alley.
There is substantial vacancy in the property due to a planned refurbishment and redevelopment, with the former food court premises stripped back to a single spacious area that is ready to accommodate future occupiers in a completely redesigned space.
The property includes an additional largely vacant dining precinct fronting Aotea Square at Level 2.
The total approximate contracted income from the property is $4.25 million plus GST annually, down from a previous contracted rental income of approximately $9 million, outlining the property’s huge potential.
Colliers directors Blair Peterken, Richard Kirke and Jason Seymour are marketing the property via an international expression of interest campaign with the deadline for offers closing at 4pm Thursday, April 27 unless sold prior.
Next to Aotea Square, Skyworld boasts exceptional redevelopment potential, evidenced by the concept plans created by architectural firm Warren and Mahoney.
The refined plans are awaiting approval for building consent to refurbish the structure into an entertainment mecca.
Alternatively, the plans proposed by Walker Group Architects envision a repositioning of the site to a 45,000sq m versatile mixed-use precinct that would include retail, office space, a hotel and apartments.
When the City Rail Link is completed, the property will be in the perfect position to make the most of its prime location with Te Waihorotiu Station (Aotea) only moments away.
The property also has access to 928 secure underground parks in the Civic carpark.
Peterken, director of Capital Markets at Colliers, says this location is set to benefit from the future development of central Auckland.
“Following the loosening of border restrictions, international students are coming back to Auckland and the area has returned to being a vibrant hub. With the City Rail Link set for completion, Te Waihorotiu Station is expected to be the busiest train station in New Zealand and that will lead to an increase in activity for the general area, to the benefit of the Skyworld complex,” he says.
Kirke, international sales director of Capital Markets at Colliers, says there’s a range of notable Auckland landmarks within walking distance of the property.
“With the likes of the Civic Centre, Aotea Square, SkyCity and the future SkyCity Convention Centre nearby, as well as Auckland’s education hub with AUT and the University of Auckland on the doorstep, several nearby assets are undergoing extensive repositioning to prepare for the increased demand from occupiers.
“With any property, transport networks are a key consideration. In this respect few assets are able to compete with Skyworld. Even now, prior to the City Rail Link’s completion, the property has exceptional motorway access and a huge number of available car parks.”
Seymour, director of Capital Markets at Colliers, says it is incredibly rare to find a building with this level of prominence and profile that has such proven potential.
“With the opportunity to refresh the property a new owner has the chance to create Auckland’s pre-eminent entertainment destination that will offer excellent accessibility, not only to the enormous resident and student population in the immediate area but also the wider Auckland region through the public transport network,” Seymour says.
“Alternatively, a future repositioning of the property into a mixed-use development would help reshape a section of the central city that is well placed to thrive in the future.”