One of New Zealand's largest property projects is in doubt after Precinct Properties deferred the $298 million waterfront One Queen Street scheme with a new 11-level five-star hotel.
"Following a recent review of future development projects, Precinct advises that the One Queen Street redevelopment project in Auckland will be deferred," the business said today.
That project was the expansion of the existing HSBC House at 1 Queen St to bring extra offices, a new InterContinental hotel and new shops.
"This period of deferral will enable us to more reliably assess the long-term impacts on the tourism market and broader economy and to position One Queen Street so as to ensure the eventual redevelopment maximises returns. Precinct continues to engage positively with the stakeholders in the project regarding the deferral," the business said today.
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The building is on the Queen St/Quay St corner with the upper levels giving uninterrupted views to the Waitemata Harbour.
It was built in 1972, refurbished in 1998 and Precinct said it had strong occupier demand.
"As stage two of the Commercial Bay development, One Queen Street will be redeveloped into a luxury hotel, 8700sq m of premium office accommodation across seven levels and variety of food and beverage options including a roof-top bar," Precinct had said previously of its plans.
"The new flagship hotel, InterContinental Auckland, managed and operated by InterContinental Hotels Group, will occupy 11 levels of the building and provide a total of 244 guest rooms and suites, together with a restaurant, meeting suites, health club and club lounge facilities," Precinct planned.
Works were to start early this year and be completed by 2022.
The project would continue to evolve as it was seamlessly integrated into Commercial Bay, Precinct initially said.
The existing 19-level HSBC block was to be retained, its facade removed and replaced, all fittings stripped back to the bare structure, then revamped in a design by Warren & Mahoney.
LT McGuinness won the main contract to develop the new hotel within the lower levels of the existing structure and the top seven levels were to be a refurbished 8700sq m office area.
Scott Pritchard, Precinct chief executive, said in 2018 that 75 per cent of that office space was pre-committed with a signed heads of agreement for 3700sq m.
The hotel was to have a meeting room suite, club lounge, gym, restaurants and bars, he said, with an outdoor, open rooftop hospitality venue which will be open to the public, spanning around 500sq m.
"The 244 rooms will be a presidential suite and a number of king suites, all with remarkable views," Pritchard said in 2018 of changes for the building developed by AMP and which was former Air New Zealand offices.
Warren & Mahoney said urban precincts were increasingly blended combinations of living, working, and entertainment uses.
"One Queen Street responds to this global shift toward mixed-use development. This project represents a unique opportunity to deliver on the ambition and vision of Commercial Bay through the creation of a true mixed-use community in the heart of the Auckland CBD," the architect said.
By tapping into the momentum of the visitor economy, the project would amplify the potential of the precinct by curating a self-reinforcing combination of uses.
"In this manner One Queen delivers a totally integrated experience, supporting the extension of daily trade, catalysing the night-time economy, and expanding the public amenity available at Auckland's premier address," Warren & Mahoney said.