Big chunk of main drag up for sale

An aerial view of the 396 Queen St office tower and a street level view of the tower. Photo / Supplied

Two big Queen St office properties opposite the Town Hall and Aotea Square are up for sale as part of Bayleys latest Total Property portfolio.

One is a big freehold block of CBD land at 360 Queen St, which occupies almost an entire city block with frontage also on to Wakefield St and Airedale St. The 3292sq m site contains two mid-level office buildings, a car parking site and the Methodist Church's Aotea Chapel, which are on five individual titles.

The other offering is one property up the road at 396 Queen St, on the corner with Mayoral Drive, and has a 9552sq m, 20-level office tower on a 1470sq m site.

Both properties are for sale by tender through John Algie and Colin McKenna of Bayleys Auckland, closing September 30, unless sold before that.

Algie says the property at 360 Queen St is strategic inner-city redevelopment site but also has over 11,000sq m of net lettable retail and office space and offers significant short- to medium-term rental income from a variety of tenants which include the Auckland City Council, AUT University and the Methodist Church.

The Auckland City Council occupies seven floors of the 10-level office building at 360 Queen St on a lease running until next year, with one one-year right of renewal.

"The property has leases with a range of expiry dates and demolition clauses that will enable a full or partial redevelopment of the site over the next five years and would provide a new owner with good holding income while plans for the site are worked through and the necessary consents obtained," says Algie.

"The property has a strategic management area 1 zoning which allows for a variety of future development options including office, retail, residential, student or hotel accommodation, a conference centre or a combination of uses."

A full "mixed-use" redevelopment concept plan for the property has been drawn up. This contemplates a gross lettable area of 30,000sq m comprising a combination of retail, office and apartment activities, which Algie says provides an indication as to the range of uses which this site lends itself to.

The property at 396 Queen St was completed in 1989, with the facade of the old Queens Head tavern retained on the Queen St frontage and a new building with distinctive blue glass curtain wall cladding constructed above and behind.

McKenna says 550sq m office floors on the upper 15 levels enjoy excellent natural light due to their shape and three surrounding street frontages. Views range from a lower-level CBD outlook to elevated view shafts with wide-ranging harbour and CBD views.

McKenna says the building provides a good standard of B grade office accommodation and tenants include national and international companies and Government agencies including the Korean Consulate, CBA Consulting Group, Ansvar Insurance, Air Pacific and ACG, which also leases signage rights on the building.

Covered car parking within the building is accessed from Airedale St, which is the third street it has frontage to, and is on levels one and three.

There are also 29 open car parking bays, making a total of 89 car parks.

Algie says both properties are in an area that is undergoing ongoing rejuvenation as part of the council's plans to further develop an arts, culture and entertainment hub in the Aotea Quarter.

About $100 million is being spent on revitalising Aotea Square which includes repair of the underground car park roof and a redesign of the square and the front of the centre.

The properties are also located within the Auckland CBD educational precinct, with AUT and Auckland University close by.

AUT occupies three levels of one of the office buildings on the 360 Queen St site and there are several other tertiary educational facilities in the surrounding area providing courses for both domestic and international students.