New Zealand's biggest private property developer, Mansons TCLM, is planning three big new Auckland office blocks worth $220 million.
Culum Manson said that demand for new low-rise green-star rated office blocks with vast floor plates was so strong that the business would put up the buildings around the fringe of the CBD.
The work could revitalise areas of the city, particularly around the City Works Depot, Parnell's warehouses and perhaps Mills Lane in the CBD where Mansons will redevelop the NZME. site between Albert St and Wyndham St.
"We haven't got to that yet," Manson said of the NZME. site a block up from Queen St.
The most valuable new building Mansons is planning is on a site at 96 St Georges Bay Rd in Parnell where the business will demolish an existing warehouse/showroom and build a 12,000sq m $100 million office block with 240 carparks.
Across the other side of the city to the west, at 46 Sale St near Victoria Park, Mansons will build 10,000sq m offices, beginning construction in July and due to finish in March, 2017.
Manson said that could be the start of a revitalisation of the area, near the City Works Depot, Les Mills, Victoria Park and the markets now filled with bars, shops and cafes.
At 79 Carlton Gore Rd in Newmarket, work is under way on a 4000sq m office for Fuji Xerox, with two floors in that block overlooking Auckland Domain.
The biggest block the firm is now working is the new $190m building at 151 Victoria St West. NZME., which owns The New Zealand Herald, will shift there later this year The top three floors are currently available for lease, as are the naming rights.
Mansons TCLM has specialised lately in developing large floor-plate buildings including the Telecom/Spark four-building campus on Victoria St West and the Watercare Services block on Remuera Rd in Newmarket.
Its tallest office block to date is the Lumley tower on Shortland St.
Manson said the business planned to fully lease all the new blocks, then sell them to recycle capital and move onto further new projects. Buyers were likely to be institutional investors, particularly NZX listed entities, he predicted.
These businesses needed to buy new modern green-star rated blocks to refresh their portfolios, maintain high standards and generate rental income, he said.
At 206 Victoria St West, on the ex-Victoria Park Markets carpark, Mansons is well under way with its $65 million Boutique Apartments, converting the parking into luxury units. But the business will not sell these units, instead retaining ownership which Culum Manson said was a family decision.
That work is due to be finished next February.
Manson works closely with James Kellow of New Zealand Mortgages & Securities and is director and major funder of that mortgage business.
Kellow said the mortgage business was also expanding.
"This year we are financing over $100 million of residential projects, land banks and bridging loans for third party Auckland based property developers," Kellow said.
Mansons new Auckland building plans
46 Sale Street
10,000sq m office building with 100 Car parks
6 Levels with views over Victoria Park and Wynyard Quarter
5 Green Stars, latest air-conditioning
Massive central atrium and laneway retail with a generous 3m floor to ceiling height.
Construction starts July with a completion date of March 2017.
Close to city works depot, Les Mills , Victoria Park market.
•96 St Georges Bay Rd, Parnell
12,000sq m office with 240 car parks
5 green star with latest air-conditioning
3000sq m floor plates with a massive central garden plaza
Construction begins September with a completion date of June 2017
First in a series of buildings Mansons will construct in the St Georges bay area.
•79 Carlton Gore Rd, Newmarket, leased to Fuji Xerox
4000sq m office development
2 levels overlooking Auckland Domain.
4 Green Star with latest air conditioning
Construction under way, due for completion October
Fuji Xerox NZ committed to 12-year lease.
Sales in last 18 months
•Telecom/Spark campus, Victoria St West: $250m
•Watercare Services, Remuera Rd: $100m
•Oracle House, Victoria St West: $55m
•Bupa House, 5-7 Kingdon St, Newmarket: $16.5m
•Kiwibank House, Auckland: $22.8m
•GHD/Lion, 27 Napier St, Freemans Bay: $63m
•Total Sales: $507.8m
[Source: Mansons TCLM]