Sir Bob Jones in his Auckland office. Photo / Richard Robinson
Sir Bob Jones in his Auckland office. Photo / Richard Robinson
In this year’s single largest commercial real estate sale, property tycoon and ex-politician Sir Bob Jones’ $2 billion-plus company has just bought an 18-level Auckland office tower valued at $70 million.
George Moore, Robt. Jones Holdings’ Auckland general manager, said the business was delighted with the purchase of 51-53 ShortlandSt.
He couldn’t say the price but said CBRE’s Brent McGregor and Warren Hutt sold it.
Now, Jones has full control of the twin-tower Shortland Centre because he already owns the neighbouring tower at 55 Shortland St. Moore said it made sense to buy the neighbour on the Fields Lane corner.
The two towers rise from a common podium with valuable underground parking for around 300 vehicles.
“Purchase of this tower complements the offering of our existing neighbouring towers which are at 41 and 55 Shortland St,” Moore said today.
Left tower in this photo is 55 Shortland St. Jones' company already owns that. Now he's bought the tower on the right, 51-53 Shortland St, valued at $70m although no purchase price was revealed.
“Our goal ... is to create a unified complex with shared facilities. For example, the two large north-facing decks and private gym are within the centre. Bringing the two Shortland Centre towers under the same ownership will allow us to add to and enhance these shared amenities,” Moore said.
“The purchase also presents an exciting opportunity for us to add value to the building, while further improving the flexibility we can offer our tenants to relocate within our portfolio as their size requirements change. Shortland Street has always leased well for us, particularly with professional services firms, and we see this trend continuing,” Moore said.
The business was continuing to work through plans for further changes and once those were finalised in around two months, Moore said he hoped to be able to say more.
Property records show 51-53 Shortland St owned by a Canadian business that has registered a New Zealand company, PSIPB/CPPIB Waiheke Inc. Directors are Britain’s Samar Balaghi, Hong Kong’s Gilles Chow, Canada’s Yohan Dube-Filion and Australia’s Michael McQueen.
Sir Bob Jones' company owned one tower, now it's bought the neighbouring one. Photo / Richard Robinson
Jones, in his 80s, founded the New Zealand Party, which was active from the early 1980s to the early 1990s and he has controversial views, including labelling beggars a disgrace to society and last decade suggesting Māori should bring Pākehā breakfast in bed, weed their gardens and wash and polish their cars out of gratitude for existing, resulting in a petition with more than 88,000 signatures.
McGregor said Robt. Jones Holdings’ deal was “signed and settled”.
Auckland Council values the block across the road from the Vero Centre at $70m. The tower was built in the mid-1980s and has around 10,000sq m of office space on 15 levels with 141 car parks in three basement floors.
McGregor marketed the building with Hutt and John Holmes.
Dexus, involved in the tower’s management, describes itself one of Australia’s leading real estate groups, managing Australasian real estate and infrastructure portfolio valued at A$62.3 billion ($66.65b) and in Australia, directly owning A$17.8b of office, industrial, healthcare and infrastructure assets and investments.
Robt. Jones Holdings was founded in 1961 and says it is the largest CBD office building owner in Auckland and Wellington, with 29 properties worth more than $2b and leasing offices to around 1000 government and commercial tenants.
Auckland's "Big Pinkie" or SAP Tower at 151 Queen St, which won an enduring architecture award, is part of Bob Jones' company's portfolio.
Wellington’s Brandon House, 342 Lambton Quay, the Bayleys Building, 73 The Terrace, City Chambers, Civic Chambers, 165 Lambton Quay and Featherston House are among its holdings in the capital.
In Auckland, it owns 41 Shortland St, Crombie Lockwood Tower, the Southern Cross Building on High St, Takapuna Finance Centre and tower one and tower two of the Shortland Centre, as well as Queen St’s SAP Tower.
McGregor said 51 Shortland St was a prominent office block.
“This is a well-recognised building in the centre of the Auckland CBD financial hub, surrounded by premium office developments including the Vero Centre and former Lumley Centre, now known as Shortland and Fort,” McGregor said in February when the block was marketed.
“It’s a compelling portfolio addition for investors looking to secure a prime CBD office investment with a diversified tenant mix, generating annual net passing income of over $5.4 million.”
The freehold property was for sale by international expressions of interest, which closed in March.
The block’s manager, AMP Capital, had upgraded the building on its 1792sq m site and put capital into it. Around 20 tenants lease space in the block, including the New Zealand Law Society, Manpower Services, Madison Recruitment and the Property Council of New Zealand, providing a diversified income stream.
Hutt said tenants represented more than 10 business sectors including government, legal, engineering and financial services.
The main lobby had been refurbished, CBRE said, with a double-height public entranceway.
Zoltan Moricz of CBRE said this week that sales of $1.27b of commercial, industrial and retail property were made in this year’s first six months, down 25 per cent on the previous half. Overall, the largest deal was Fisher & Paykel Healthcare’s $275m purchase of land at 300-328, 350, 270 and 458 Karaka Rd, Drury for its innovation hub, where thousands of people will work.
The biggest retail deal was Kiwi Property’s $85.7m sale of its Westgate Lifestyle Centre to a joint venture between Harvey Norman and Rod Duke of Briscoes/Rebel Sport, CBRE said.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
