Precinct Properties steps up its ambitious construction programme with a new $72 million office building in Auckland

Thursday, 1 November 2018

An illustration of 10 Madden Street, in the Wynyard Quarter, being developed by Precinct Properties.

Leading property developer Precinct Properties is stepping up its $1 billion-plus construction programme, announcing a new $72 million commercial building for the trendy Wynyard Quarter.

Precinct plans to break ground on the new project, a seven-level office building at 10 Madden Street, designed by architects Warren and Mahoney, within weeks.

The building is the second stage of the company's Wynyard Quarter Innovation Precinct project and will have 8290 square metres of lettable space.

The company has an ambitious construction programme underway with commitments to building well over $1 billion of property in Auckland and Wellington including the huge Commercial Bay office, retail and hotel development on Auckland's waterfront and the redevelopment of several buildings in the Bowen Campus in Wellington near Parliament.

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The 10 Madden Street building will be immediately east of stage one which includes the Mason Bros building and the office building at 12 Madden Street.

The company said following stage two, another two sites could be developed for 22,000sqm of office space 'which we expect to develop over the next five to six years.'

The company is confident enough in demand for office space in the quarter to go-ahead with 10 Madden without any lease pre-commitments.

12 Madden Street is one of the completed buildings in stage one of Precinct Properties' Wynyard Quarter development project.

Chief executive Scott Pritchard said 'Committing to the development of stage two reflects an important step forward in the development of the wider Innovation Precinct and the creation of a thriving creative hub.

'We began construction of stage one in 2015 and we are excited to proceed with the next stage of the project's evolution.'

'Having developed The Mason Bros. building during stage one on an uncommitted basis, we have confidence that the quality and location of this development will attract occupiers with the majority of tenancies expected to be committed prior to completion.'

Once fully leased the company expected the building to generate a return on cost of 7 per cent.

Pritchard says leasing opportunities were open to interested parties.

'There is already strong interest and we are in advance discussions with a number of occupiers keen to take advantage of an address at Wynyard Quarter.'

A recent JLL review of Auckland central city vacancy showed that the Wynyard Quarter was fully occupied.

The 10 Madden building would have a 1275sqm floor plate comprised of a single level basement and seven upper floors.

The design would allow a range of office configurations and include ground floor retail and hospitality premises as well as a new public space, N.Cole Plaza.

The development would be undertaken by Precinct in partnership with Auckland development agency Panuku Development.

Hawkins Construction would be the main contractor under a fixed price construction contract.

Construction was expected to begin later this month with completion expected at the end of 2020.

Precinct was targeting a 5 Green Star rating for the design and construction of the building and a 4.5 star NABERSNZ energy efficiency rating.

Smart features would include 12 electric vehicle charging units, daylight harvesting and LED lighting.