Precinct secures development agreement at Wynyard Quarter
Precinct Properties New Zealand (NZX: PCT) announced today that it has entered into a development agreement with
Waterfront Auckland to develop the commercial office property within the Central precinct of Wynyard Quarter. The
agreement marks the successful conclusion of the exclusive negotiations which were announced earlier this year.
Scott Pritchard, Precinct's Chief Executive, said, “We are very pleased to have reached this agreement to work in
partnership with Waterfront Auckland. We now have two unique and exciting opportunities on Auckland’s CBD Waterfront. It
is widely accepted that there has been a shift in Auckland’s CBD from a historic north-south or Queen Street orientation
to one that follows the waterfront. We believe this development complements our existing portfolio but importantly will
support our aspirations for the Downtown Shopping Centre site.”
“Securing this opportunity has been design led and the team together with our architects Warren and Mahoney have done a
fantastic job.”
The current design is for two sites separated by a 15m wide public laneway “the Water Street”. Both sites have frontage
to the Water Street that runs from east to west between the sites.
Wynyard Quarter is one of New Zealand’s largest urban regeneration projects and has benefited from considerable public
investment which is also set to continue. Its public spaces and level of amenity in Auckland is unrivalled.
The sites will accommodate the Innovation Precinct and have a land area of approximately 1.1 hectares with the potential
to develop around 46,000 square metres of gross floor area.
It is envisaged that these two sites will be developed in 5 stages. The leasing strategy for the sites will build upon
existing efforts to create a purpose-built information communication technology and digital media hub that brings
together innovative entrepreneurs and larger scale companies as part of Auckland Tourism Events and Economic
Development’s (ATEED’s) plans for a multi-building innovation precinct in the Wynyard Quarter.
Precinct will undertake the leasing, design and development of the site and once agreed with Waterfront Auckland,
Precinct will acquire a 125 year prepaid ground lease to that stage. Progressing to construction of each stage will
require both Waterfront Auckland and Precinct approval. 2
The consideration for the prepaid ground lease will be determined based on a residual valuation allowing for market
tested assumptions. The structure provides strong alignment and encourages a partnership approach between Precinct and
Waterfront Auckland.
Precinct retains its city centre office sector specialist strategy. This opportunity caters to corporate occupiers whose
operations would benefit from low rise, larger floor plate accommodation in a city centre location and with a focus on
sustainable and innovative design. The Innovation Precinct also widens Precinct’s client base to provide accommodation
for high-growth technology businesses that may not otherwise be located in the CBD.
Precinct’s previously announced programme of recycling capital out of its existing portfolio will provide funding for
this opportunity, taking advantage of strong investment market conditions and a lack of competing stock.
SAP Tower is currently being marketed for sale. Additional assets identified for sale are currently being repositioned.
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