Auckland Council sells central city building for $58m, plans to reinvest in local service centres

The council's customer service team will remain in the building until mid-2020 when it will move into other council-owned buildings on Albert and Wellesley streets. Photo / Google

Auckland Council has agreed to sell its Graham St offices in Auckland's CBD to Asset Plus for $58 million as part of its plans to reinvest in modern service centres throughout the region.

The council's customer service team will remain in the building until mid-2020 when it will move into other council-owned buildings Te Wharau o Tāmaki Auckland House on Albert St and Te Wharau o Horotiu Bledisloe House on Wellesley St.

Finance and Performance Committee Chairman councillor Ross Clow said the money from the sale would be used create more modern facilities around the region to meet council's aim of having its services accessible to all Aucklanders by providing a contact point within 10km of where they live.

Head of Corporate Property Rod Aitken said the building was surplus to future requirements.

Getting rid of the property from the council's portfolio would also save ratepayers an estimated $117 million maintenance cost over the next 10 years.

"Selling off this part of our portfolio and reinvesting in fit-for-purpose spaces is a far better outcome for both customers and staff."

The conditional agreement was signed on Monday and is subject to the approval of Asset Plus shareholders at a meeting scheduled in early June. Subject to that approval, settlement will occur by end of June 2019 and council will continue to lease the building for two years.

Asset Plus chairman Bruce Cotterill said the property would be redeveloped at the end of the lease term.

"Once refurbished, we expect the expansive floor plates and extensive views will be attractive to a number of these tenants. The Augusta team will be pursuing these potential leads immediately."