Listed business Infratil is completing a new $70 million Auckland property project on a Wynyard Quarter leasehold site which could take $500m of commercial and residential developments.
Andrew Lamb, Infratil Infrastructure Property development director, said work was about to finish on its first building on the corner of Pakenham St and Halsey St.
That seven-level block is the new 154-room Travelodge Hotel Auckland Wynyard Quarter and a 385-space carpark on the back of the hotel or Fanshawe St side, as well as new shops and new offices for NZ Bus.
Further developments are being considered in the longer-term, including new offices as well as build-to-rent residential accommodation, Lamb said of the 1.7ha site fronting Daldy St, Gaunt St, Pakenham St and Halsey St.
"The $500m plans could see a further 80,000sq m of commercial space added," Lamb said. Some parts of the site can take a 13-level block, he said.
"The next two buildings will be commercial. We have resource consent for one but that's going to be tenant-led because 2020 has been a pretty tough year and we're going to have to take into account where the market is."
To complete the 22,000sq m hotel/car parking/shop/office building 1, Infratil reconfigured NZ Bus usage of the Halsey St end of the site. So 16 workshops were reduced to eight and 70 car parks have been leased for NZ Bus staff to park their private vehicles, taking up less space on the site, Lamb said.
Bus servicing which was not urgent is now done at the Swanson depot, he said.
The new Travelodge opens on October 28, managed by Aucklander Nick Mannion who has returned from Perth for that job.
Lamb said isolation stays were not planned. The 3.5-star hotel had been designed for the corporate market and being so close to the America's Cup bases should generate guests for that event, Lamb said. Although some car parks would be leased, more than 100 would be available to the public and, being so near the ASB Waterfront Theatre, Lamb expects demand to be strong.
NZ Strong was the head contractor on building 1 where Lamb said around 340 subcontractors were finishing work. The building was designed by Peddle Thorp architect Manuel Diaz who said steel mesh cladding was imported from Spain. In a nod to the area's industrial past, the roof has a saw-tooth design feature.
Infratil has a perpetually renewable lease on the 1.7ha site. Under the Glasgow lease terms, the rent is reviewed every 21 years and was last renegotiated in 2014. The land is owned by Viaduct Harbour Holdings of which Panuku Development Auckland subleases a portion and Infratil leases it all.
A 750sq m Countdown Metro, Vietnamese HelloMister, Red Rabbit Coffee Co and Uncle Man will trade from ground-floor outlets beside the Travelodge, Lamb said.
Lamb has been working in the Wynyard Quarter for 20 years, having previously been with the formerly listed Trans Tasman Properties, then the listed Goodman Property Trust.
At Trans Tasman, he was development manager for the Air New Zealand's headquarters on Fanshawe St.
When NZ Bus leaves its current headquarters and moves into new offices in building 1, Lamb said Infratil could then demolish its existing headquarters and examine development propositions for that site.
Lamb said Cooper and Company would manage the new carpark.