PCT - Sale of PwC Tower to New Investment Partnership

Tuesday 16th June 2026

Precinct Properties Group (Precinct) (NZX: PCT ) announces that it has entered into an agreement to sell a 50% interest in PwC Tower, Auckland, and to establish a new investment partnership with PAG, a leading global investment firm.

Scott Pritchard, Precinct’s CEO, said, “We are pleased to confirm the sale and establishment of a new investment vehicle, and to be growing our relationship with an existing capital partner. The transaction is highly consistent with our strategy to recycle capital and grow capital partnerships, and demonstrates Precinct's ability to continue to execute on its strategy through challenging global market conditions.

“PwC Tower is regarded as Auckland’s best premium office building, developed by Precinct as part of the first stage of the transformational Commercial Bay development which completed in 2020. This transaction retains Precinct’s ownership of a significant stake in a premium asset while further positioning our balance sheet to progress future opportunities as market conditions allow.”

Key transaction terms

The partnership will acquire the asset for a headline price of $600 million.

Under the terms of the sale and purchase agreement, the equity consideration will be deferred for 18 months post settlement and is subject to a price adjustment mechanism. The adjustment mechanism is linked to the five-year swap rate and may reduce the effective sale price, subject to a cap. Precinct expects the effective sale price to be within 5% of book value.

Precinct will be the investment and asset manager on behalf of the new partnership with a market fee arrangement in place. The transaction remains conditional on OIO approval and settlement is expected in H1 of FY27.

Proceeds from the sale will be initially used to repay bank debt, with Precinct’s pro forma gearing to reduce to 24% as at 31 December 2025 (note 1).

Downtown project update

The PwC Tower transaction provides the business with greater financial flexibility to pursue growth, while ensuring continued discipline in its approach to capital allocation.

Consistent with Precinct’s previous projects, the company is actively progressing a range of workstreams to support an informed development commitment decision, including preleasing, procurement, consenting and funding capacity.

Precinct has partnered with a Main Contractor, Built, to undertake Early Contractor Involvement (ECI), and this phase is expected to continue until April 2027. Built is an Australian-owned tier 1 contractor, headquartered in Sydney, with a strong track record in high-rise construction within design-build fixed price contract frameworks. This phase will conclude in April 2027 and will inform any commitment to the development.

ENDS

Sale of PwC Tower to New Investment Partnership

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