Pritchard in front of the company's holdings: almost two downtown waterfront blocks. Photo / Michael Craig
Pritchard in front of the company's holdings: almost two downtown waterfront blocks. Photo / Michael Craig
More than 7000 of the approximately 10,000 workers whose offices are in Precinct Properties’ two downtown blocks are back at work and the chief who pleaded for them to return now says “thank you”.
Scott Pritchard, chief executive of Precinct, which has $3.8 billion of assets, said: “Around 85 percent or 7000 to 7500 workers have returned to these two blocks.”
He was standing on Princes Wharf, pointing back to Commercial Bay and the waterfront lots where the company has an interest in every building except the M Social Auckland.
In February, Pritchard pleaded: “Please come back,” appealing to business chiefs to reconsider sending staff home, saying the consequences for Auckland and Wellington’s CBD were dire. If you want something to return to, come back now Pritchard said, noting declining amenities and commerce due to so many working from home.
The Deloitte Centre at 1 Queen St is undergoing a refurbishment so around 2000 people are out of that currently, cutting the two-block population maximum back from its usual 10,000 to around 8000 people.
When head contractor LT McGuinness finishes there towards the end of next year, many of the 10,000 could be back at their desks.
Precinct has previously announced it is spending $305m on the Deloitte Centre refurbishment at 1 Queen St but Pritchard today put the sum at $310m.
How the refurbished building - to be called the Deloitte Centre - might look at night. Photo / supplied
The Herald reported on October 31 how ANZ New Zealand, whose Auckland office is based in the ANZ Centre on Albert St, has cut its floor space by 1900sq m in the past year - roughly the equivalent of two floors in the tower.
Australian parent ANZ Group has cut its Melbourne office space by 51,000sq m and in Sydney it has cut 5600sq m, adding up to a 20 per cent reduction in its Australian footprint.
Antonia Watson, local chief executive, said more people were working from home.
Pritchard acknowledges the problems a less populated city centre created: “Six months ago, it was deserted, we had crime but now with the return of cruise ships and people being back in the centre, we’re going really well. But now we’re nearly back to pre-Covid levels. Over the last two or three months, there’s been a real resurgence of people back in the city centre particularly in around this precinct we own which is PwC Tower, Jarden House, HSBC and Aon. We’re seeing a city centre that’s beginning to thrive again.
“Retailers are really benefiting,” he said of the flow-on effects.
How the rooftop bar in the refurbished block might look, once $310m has been spent throughout the structure. Photo / supplied
All floors of the Deloitte Centre are now clad in glass except the top six levels. When that’s done in next year’s third quarter, it will be:
* Basement: a bar, its occupier to be determined for 1152sq m area;
* Ground floor: shops of 102sq m and 220sq m fronting Queen St/Quay St;
* Level one: main access into the refurbished building, with the main commercial lobby, restaurant and bar, elevated, overlooking Te Komititanga, able to accommodate around 180 people;
* Level two: Part of Harbour Eats where Juke Joint, Gochu, Hawker & Roll, Ghost Donkey and Burger Burger are.
* Levels three to five: eight private office suites from 120sq m to 380sq m;
* Levels six to 11: The InterContinental Auckland, 8827sq m with 139 guest rooms (cut from an originally planned 244). Presidential quite of 120sq m on level 11;
* Levels 12 to 14: Bell Gully’s new offices after the lawyers vacate Shortland St’s Vero Centre where they’ve been for many years;
* Levels 15 to 20: Deloitte on 7500sq m on a 20-year lease across six full floors;
* Level 21: rooftop restaurant and bar, occupier yet to be determined, 305sq m of internal space and 275sq m of outdoor verandas.
The pandemic initially scared Precinct off refurbishing the block: in 2020, it deferred the $298m job. Then it rekindled it but cut the hotel portion and plans to add more levels to the building. The building was originally constructed in 1972 and refurbished in 1998.
Pritchard says it will complete Commercial Bay, acting as a gateway to the precinct from the waterfront.
Eke Panuku Development has also picked the company to work with Ngāti Whātua Ōrākei to redevelop the site of the Downtown Carpark - unlikely to offer any public parking once a big new office tower rises there. The seven-level carpark will be demolished and a skyscraper to rival the PwC Tower could be developed on the land, the Herald has previously reported.
Precinct has a market capitalisation of $1.9b, trading around $1.20, down 25 per cent annually.
