Blackstone funds have struck a $635 million deal to buy seven big central Auckland office blocks, subject to Overseas Investment Office and land owner approval, the vendor has announced.
The KPMG, Auckland Transport, Microsoft and HP, Fonterra Centre, Bayleys House, Datacom and Air New Zealand buildings are in the deal.
John Dakin, Goodman (NZ) chief executive, announced the agreement for NZX-listed business Goodman Property Trust to sell the VXV commercial precinct in the Wynyard Quarter area to what he called certain Blackstone funds.
Blackstone Asia chairman Chris Headley said: "This portfolio is Blackstone's first office portfolio acquisition in Auckland and presents an opportunity for our investors to have a meaningful exposure to high quality assets in a strong, resilient office market. We look forward to working with the landowners to enhance the Viaduct precinct for the benefit of owners, tenants and the people of Auckland."
Dakin's statement said the transaction remained subject to Overseas Investment Office and freehold land owner approval but he said it was expected to settle late in the 2019 financial year.
"This is a defining transaction for our business as it completes a repositioning programme," Dakin said.
"Following this and other contracted sales, GMT's $2.2 billion portfolio will be almost 100 per cent invested in the Auckland industrial market. We have made tremendous progress with our development programme over the last five years with more than $670 million of new projects improving an already high-quality portfolio."