Kiwi Property to sell ASB North Wharf to Precinct for $205m

ASB North Wharf on Auckland's waterfront. Photo / Richard Robinson

Kiwi Property Group has struck a deal to sell Auckland’s ASB waterfront headquarters to Precinct Pacific Investment Limited Partnership for $205 million.

Stock exchange announcements were made by Kiwi and Precinct today.

Kiwi CEO Clive Mackenzie said: “The sale of ASB North Wharf is a significant milestone for our capital recycling programme and is the third property transaction we have agreed in the last three months.

“Our balance sheet is now strongly positioned to support growth, aligning with a property market that is showing clear signs of recovery,” said the Kiwi chief.

Precinct CEO Scott Pritchard said the buyer was part of an existing partnership with global institutional investor GIC.

That is an investment arm of the Singaporean Government.

The North Wharf buildings. Photo / Moonshot

The purchase is subject to Overseas Investment Office approval.

Pritchard said the purchase aligned with the partnership’s strategy to invest in high-quality, well-located commercial assets.

The building was finished in 2013.

ASB will extend its lease till 2040.

Precinct Properties CEO Scott Pritchard. Photo / Jason Dorday

“This is a strong endorsement of the Wynyard Quarter precinct, and we look forward to working with ASB as they refresh their premises to reflect their workforce’s needs,” Pritchard said.

Settlement is due in the first half of this year, he added.

In November, Stride Property announced it would lease the three North Wharf sites in front of the ASB headquarters.

It plans to redevelop those red sheds.

It will lease the properties from Auckland Council’s Urban Development Office for 125 years in a $17.5m deal.

CEO Philip Littlewood announced plans for a redevelopment of two of the three properties opposite ASB North Wharf with the company’s results.

ASB North Wharf: revolutionary open-plan open-floor design. Photo / Richard Robinson

Design and consenting is underway for a 10,500-12,500sq m premium mixed-use retail and office development, he said.

The combined area of the sites on Jellicoe St, facing the pedestrian North Wharf Promenade overlooking the sea, is 3672sq m.

New buildings for hospitality and offices may rise. Those could be up to 15m or five levels, although one heritage building must remain.

However in November, Littlewood indicated redevelopment may be only four levels high “but it may vary depending on the final design”.

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.

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