The sale of Auckland’s Downtown Car Park - how the numbers stack up

Thursday, 26 September 2024

The downtown car park that has earned Auckland Council $80m is set to be demolished.

Downtown Car Park has fed $80m in profit to Auckland Council over the past decade. But that revenue stream will end when the last car exits the building in late 2025 and the car park closes for demolition.

For the city’s planners, the site is the last piece in the puzzle to connect the Britomart and Commercial Bay area with the Viaduct. For Aucklanders popping into the downtown area to eat, play or work, it’s simply a convenient place to park.

Here’s a by-the-numbers breakdown of the comings and goings, financial and vehicular, at the site.

$122 million

How much Auckland Council will pocket from the sale of the 6442m² site to Precinct Properties at the end of 2025.

The Downtown Car Park building will be sold to Precinct Properties for $122m.

The resource consent application for redevelopment shows plans for three podium buildings, two towers and six levels of shared basement, with public spaces and a laneway network.

56

Redevelopment plans for the Downtown Car Park site show two towers, 45 and 56 floors high.

The number of floors in one 227m tower. The other will be 45 floors and 162m high. From level three up in both buildings will be office space, and the upper floors will house up to 331 apartments.

120,000m²

The approximate overall floor area of the finished development, including 62,500m² of office space, 51,600m² of residential, 2200m² for retail, and food and beverage, and 3300m² in public space.

Of the 1944 parking spots in the building, 861 are available for casual car parking. This ramp connecting the car park to Fanshawe St will be removed.

861

The number of car parks currently available for casual car parking, with 607 on casual leases, and another 200 licenced to Precinct. Of the total 1944 parking spaces in the building, 144 are motorcycle and scooter spaces.

Free on-street car parks in many suburban centres will be removed by Auckland Transport in a bid to reduce the city's reliance on cars.

200

The parking spaces Precinct said it will provide for public use within or close to the redeveloped site.

483

Vehicles entered the car park on Christmas Day last year - the quietest day for the car park in the year from September 1, 2023 to August 31, 2024, according to Auckland Transport. The next six quietest days were also public holidays.

Six of the 10 busiest days in this period were in December 2023, with the busiest day being Saturday October 28, 2023 when 3730 vehicles entered the building.

Average peak occupancy of the car park during this period was 63% on weekdays and 60% on weekends, AT said.

Plans for the redevelopment show the view of the two towers from the Viaduct area.

$8 million

An artist’s view of the new development from Lower Hobson Street near the Tepid Baths.

The average annual profit Auckland Transport made from the car park between July 1, 2014 and June 30, 2024 when total income was $88.6m and expenses were $8.2m (not including depreciation).

The greatest profit, $10m, was made in the year ending June 30, 2018, while the least profitable year, $5.6m, ended on June 30, 2022 and included the late 2021 months when Auckland spent 107 days at Covid alert levels 3 and 4.

$5.50

The footbridge over Lower Hobson St will be removed when the parking building is demolished.

That’s the current parking charge for one hour between 6am and 6pm Monday to Friday, with a daily cap of $24. After 6pm, and on weekends and public holiday, the fee is $2/hr with a $15 cap.

$985,763

The rates assessment for the site for the current rating year. Precinct Properties will be liable for rates after the settlement date, and any capital value increase would likely lead to a rates increase, an Auckland Council spokesperson said.

$1.6 million

Auckland Council’s planning and consultant costs for the property sale, including costs associated with due diligence, professional fees, marketing, and real estate agency costs.

Christmas Day was the quietest day for the car park in the last year, with just 483 vehicles entered the building.

$300,000

Expected legal costs to the council for a judicial review of its decision to sell the site, which was filed by Save the Queen St Society but withdrawn at the end of July before a hearing set for August. That includes external legal costs and “a small contribution” to Precinct Properties for the cost of settling the matter and avoiding further delay and legal expenses, a council spokesperson said.

1 year

How long demolition of the parking building is expected to take. The first piece to go will be the Lower Hobson St pedestrian bridge, which is expected to take 48 hours to remove.

Dismantling the parking building itself will take a year, while it will take a week to remove the vehicle ramp that crosses Customs Street West to join the building to Fanshawe St.

A spokesperson for Precinct Properties told Stuff that a completion date for the redeveloped site could not be given due to “the size and scale of the project”.

December 2025

When the balance of the purchase price is due to be paid to the council and the car park is expected to close.

Although the deal is expected to settle in April 2025, with Precinct taking ownership at that time, Auckland Transport will operate the car park until the end of the year.