Former bank headquarters on a commanding site

The 15-level building has frontages onto Queen and Victoria Streets.

KEY POINTS:

• Building has Queen and Victoria St frontages.

A 15-level retail-office block is for sale on one of Auckland CBD's busiest intersections, commanding huge public prominence and profile.

Agents say the axis location of the building which once housed the ANZ Banking Corporation, delivers a significant presence on two of the country's busiest inner-city thoroughfares: there is a 24m frontage on Queen St, plus a 36m frontage on Victoria St.

The multi-tenanted building sits on on 802sq m of freehold land, at 203 Queen St, with international cosmetics chain Mecca occupying the basement, ground floor and mezzanine retail space.

Of the 12 floors above, three are tenanted by gymnasium operator CityFitness.

The building was a constructed in 1964 and is typical of the era, having concrete columns and beams, concrete floors and partial stone cladding.

Each office floor encloses about 633sq m, an overall net lettable area of 8550sq m.

Originally the head office for the ANZ, the property was upgraded and partially refitted during the mid-1990s, 2005, 2015 and 2018.

In 2005 a refurbishment costing $17m included installation of modified lift cars; floor and ceiling modifications; new amenities and the upgrade of the air conditioning system. Latest improvements have been on the retail level.

The property is being marketed for sale by private treaty through Bayleys Auckland, with offers closing at 4pm on November 14.

Brokers David Bayley and Layne Harwood say the building had an A+ seismic classification and an NBS rating of 119 per cent.

"The property in its current configuration generates a total net passing rental income of $3,095,000pa, with a forecast total net income of $3,520,000pa, when fully tenanted," Bayley says.

The tenants:

It is on a lease running through to 2024, with two further five-year rights of renewal. British retail giant Topshop occupied the retail space for several years from 2015 — ahead of assigning its lease to Mecca, which began trading last month.

The office tenants include:

Pacific International Translations; Golden Forest International; Global Village; Caliber Investment; Go 4 NZ; Formax International; Sapere Research; NZ Transport Agency; Queen City Law; Moore Stephens Markhams; IDC NZ and Amicorp NZ.

Harwood says the tenancy schedule is split across multiple use types. Sixtytwo per cent of the building is occupied by office tenants; 22 per cent by CityFitness and 16 per cent by Mecca.

Combined, these tenancies had a weighted average leasing term of about 4.5 years.

"Though in good condition following its substantial refurbishments, the building could be further upgraded, as befitting its position at the heart of Auckland's premier retail street.

"The high quality Mecca fit-out this year enhances the building's retail presence significantly, similar standards could be achieved relatively easily with the upper levels, which would enhance rental levels, adding considerable value," says Harwood.

Bayley points out that only rarely do properties of a similar size and location come up for sale.

"Only two Queen St office buildings have sold for more than $50m in the past 18 months — at 205 Queen St (for $174m), and also the heritage building at 131 Queen St ($52.3m)."