Plans (left) for the new 12-level $290m student accommodation block at 22 Stanley St, Parnell. The building shown on the right is existing and was developed by Safari. Photo / Precinct Properties
Plans (left) for the new 12-level $290m student accommodation block at 22 Stanley St, Parnell. The building shown on the right is existing and was developed by Safari. Photo / Precinct Properties
Multibillion-dollar listed landlord Precinct Properties is planning a 12-level 960-unit student accommodation block in Parnell, projecting a $290m valuation on completion.
Precinct CEO Scott Pritchard and University of Auckland chief property officer Simon Neale announced the project on an empty site at 22 Stanley St.
That is adjacent to theexisting Stuart McCutcheon House and will be part of the existing Carlaw Park Student Village.
As part of today’s announcement, Pritchard said the company had also struck a conditional deal to form a new real estate investment partnership with a Singaporean institutional investor.
The Singapore deal was conditional on Overseas Investment Office approval and financing documentation, he said.
Orange outlined areas show existing student accommodation in Parnell. The area outlined in purple shows plans by Precinct Properties to develop a 960-unit block. Photo / Precinct Properties
The new student block units will each have their own kitchens and bathrooms.
The developer indicated it planned to sell 80% of the project. Precinct said it would retain a 20% interest in a newly-formed partnership and will be the developer, development manager and property manager of the new block.
Auckland needed more student accommodation, Pritchard said.
Carlaw Park Student Accommodation: project now completed. Photo / supplied
The company he heads had identified a “significant shortfall of student accommodation in Auckland, against a backdrop of growing demand for Auckland’s highly rated universities”.
“In response, we have secured a substantial pipeline of well-located new student accommodation opportunities. Committing to our first purpose-built student accommodation project supports the execution of Precinct’s pipeline, with this initiative advancing both our living and capital partnering strategies.”
This is not Precinct’s first time launching student accommodation plans.
Today’s announcement comes after last June’s revelation that Precinct would make a $300m+ push into the residential market.
Building a 500-unit $100m+ student accommodation tower at 256 Queen St, “to be a tall building, up to 30 levels”;
New Mt Eden apartments on Eke Panuku land, 198-222 Dominion Rd and 113-117 Valley Rd, across from Woolworths;
Buying half of developer Lamont and Co, which Precinct does not already own, with founders Tim and Andrew remaining for five years.
“This is a clear signal of our commitment to moving into the living sector,” Pritchard told the Herald last year from 101 Carlton Gore Rd.
That is the site of a display suite for the neighbouring Domain Collection office-to-residential conversion by Precinct, a joint venture with Lamont & Co.
Precinct is selling its InterContinental Auckland hotel to Singaporeans for $180m.
