PCT - Joint Venture formed to acquire Te Tōangaroa portfolio

Monday 14th August 2023

Precinct Properties Group (Precinct)(NZX: PCT ) is pleased to announce today it has formed a Joint Venture with the tangata whenua of central Tāmaki Makaurau Ngāti Whātua Ōrākei, to invest in the regeneration of the Te Tōangaroa precinct in the Tāmaki Makaurau city centre. Precinct’s investment will be in partnership with global private investor, PAG.

The Te Tōangaroa portfolio comprises two low-rise commercial buildings situated at 8 Tangihua Street and 30 Mahuhu Crescent, totalling approximately 22,000 square metres. The broader Te Tōangaroa precinct within the eastern portion of Auckland city centre provides a mix of office, hotel, and residential accommodation as well as Spark Arena. Across the two properties, the Precinct/PAG partnership will hold a 56% ownership interest and Ngāti Whātua Ōrākei will hold the remaining 44% interest. Precinct’s initial equity investment is approximately $10 million with further capital expenditure anticipated for re-leasing of the buildings.

Ownership of the land will remain with Ngāti Whātua Ōrākei with the investment partnership holding a 123 year prepaid ground lease.

8 Tangihua Street is a 9 level A Grade commercial building. Originally constructed in 2008 to a 4 Green Star design specification, an extensive lobby and ground floor refurbishment programme has been recently completed. The building provides modern office accommodation to a number of clients on long term leases.

30 Mahuhu Crescent is an 8 level A grade commercial building, situated with corner frontage to Mahuhu Crescent, Tapora Street and Quay Street. The building was completed in 2008 to a 5 Green Star design specification and accommodates 5 levels of campus style office accommodation to a single tenant who is expected to relocate mid 2024.

Scott Pritchard, Precinct’s Chief Executive, said, “Leveraging Precinct’s asset management expertise, market relationships and capital partnerships, we are delighted to be working with Ngāti Whātua Ōrākei and our investment partner PAG to invest in and regenerate this key site along Auckland’s waterfront.”

“The joint venture will focus on the repositioning of both assets and enhancing the Te Tōangaroa precinct, where Ngāti Whātua Ōrākei owns approximately 20 hectares of land. A key priority will be the re-leasing at 30 Mahuhu Crescent which will become vacant in mid 2024.”

“As the Auckland city centre recovers from the upheaval of the last few years and returns to growth, we are excited to be working in partnership to enhance this part of central Auckland. Alongside our partners we are committed to cultivating cities that people can be proud of and Te Tōangaroa is an important part of the city. Not only does it enhance the east-west connection along the waterfront, but its proximity to strong transport links makes it a popular location for office occupiers.”

"Precinct is proud to be working in partnership with Ngāti Whātua Ōrākei, and excited about the opportunities within this Joint Venture as well as future opportunities. Aside from improved design outcomes, this Joint Venture will provide social benefits, including a scholarship funded by the Joint Venture, as well as social procurement outcomes for Ngāti Whātua Ōrākei.”

Ngāti Whātua Ōrākei Whai Rawa Chief Executive Grant Kemble says the commercial partnership with astute property experts such as Precinct is exciting.

“We have tremendous respect for Precinct and the way they have contributed to making Tāmaki Makaurau a city we can all be proud of, and we are thrilled to embark on this journey with them to enhance the vibrancy of our precinct, Te Tōangaroa.

We look forward to combining our strengths, leveraging our collective experience, and ushering in a new era of possibilities for all those who call Te Tōangaroa and Tāmaki Makaurau home.”

Precinct will be appointed as Investment and Property Manager to the Joint Venture with the acquisition of the Te Tōangaroa Portfolio expected to settle at the end of August 2023.

Ends

Joint Venture formed to acquire Te Toangaroa portfolio

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