Plans for New Zealand's largest purpose-built student accommodation tower at 256 Queen St in Auckland CBD. Photo / Precinct Properties
NZX-listed landlord/developer Precinct Properties has appointed a builder to what is planned to be New Zealand’s tallest purpose-built student accommodation tower.
Icon, headed by Dan Bosher, has won the contract to build the $201 million, 638-unit 32-level tower at 256 Queen St in the centre of Auckland.
Precinct said on Tuesday the project would be “a major milestone in our strategy to deliver world-class living experiences”.
The company has a broader $3.7 billion development pipeline and the Queen St block is part of that, Precinct said.
“This builds on the momentum of our recent strategic purpose-built student accommodation partnership at 22 Stanley St,” the company said, referring to another tower in Parnell.
“Together, these projects bring our committed student accommodation pipeline to 1602 beds - a significant step toward meeting the growing demand for high-quality student housing in Tāmaki Makaurau.”
Precinct aims to have the Queen St tower finished for the start of the 2029 academic year.
Its Stanley St project is larger than Queen St.
The Parnell scheme is a $290m 960-unit student accommodation block with building started in June, due to open in 2028.
On Monday, Precinct launched a $310m equity raise to fund growth through a fully underwritten $285m placement and a non-underwritten share purchase plan targeting $25m.
Proceeds are to repay bank debt and fund the Queen St project.
The placement was underwritten at $1.23 per new stapled share, being a 7.5% discount to the last closing price of $1.33 on last Friday and a 7.7% discount to last week’s five-day volume-weighted average price of Precinct’s stapled shares.
Chief executive Scott Pritchard said Precinct was positioning itself for sustained earnings growth.
Bosher said today that the business had been working on the Queen St project since the second quarter of last year.
“It’s been a big journey to get there in difficult market conditions. We’ve signed the contract and take possession of the site on November 3. It’s great to have positive news.
“Each of the 638 units will have its own bathroom and own kitchen so it’s world-standard student accommodation, a premium offering.”
Icon also built a new 18-level student accommodation building with 758 units at 66-77 Lorne St in Auckland CBD.
That is for Cedar Pacific, with UniLodge to be the operator, Bosher said. Like Precinct’s Queen St tower, the Lorne St block was designed by Ashton Mitchell.
Precinct’s new Queen St block will be about 400m from the University of Auckland and AUT University.
Architects Ashton Mitchell said the project would help revitalise Auckland’s midtown precinct.
The former Auckland Savings Bank Headquarters, built in 1884, is listed as a Category 1 Historic Place.
It was designed by Edward Bartley and is an Italianate building which has served many roles.
“The development carefully retains and restores ornate heritage façades and interiors, including the coffered ceiling of the grand banking hall, ensuring the building’s historic character continues to enrich the Queen St streetscape,” Ashton Mitchell said.
The studio-style student rooms will each have a kitchen and bathroom.
The atrium will be triple-height with a spiral staircase.
Precinct $3.7b residential plans, largest to smallest:
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.