In what is likely to be one of the country's biggest commercial property deals this year, Auckland's $300 million ghost tower has found a conditional buyer.
The 56-storey Seascape was destined to become the city’s tallest residential high-rise but ended up as New Zealand’s biggest "as is, where is" sale following the collapse of developer Shundi Customs.
Bayleys Real Estate listed the property in May on behalf of receivers Calibre Partners, just weeks after breaking New Zealand's house price record with the $56m sale of Andersons Cove, in Northland.
Up for grabs were the partially built Seascape tower and an entire city block on Auckland's Customs Street East, including the heritage Britomart Hotel known as the White Rabbit, and Ballantyne House.
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Bayleys has now confirmed the conditional sale and purchase agreement covers the properties at 69-105 Customs Street East, but says the transaction is subject to the buyer completing further detailed due diligence.
The agreement follows a comprehensive two-stage international Expressions of Interest campaign, which engaged more than 300 domestic and international groups, with 48 parties accessing the Stage One data room, the company said.
After 13 building inspections, 19 Stage One expressions of interest were received from parties across New Zealand, Australia, China, Southeast Asia and the United States.
Bayleys head of commercial property Ryan Johnson has brokered one of the country's biggest real estate deals. Photo / Fiona Goodall
An artist’s impression of what the 56-storey Seascape would look like once completed. Photo / Supplied
The Seascape penthouses were pitched to buyers as the ultimate statement in high-rise living. Photo / Supplied
Bayleys chairman and managing director Mike Bayley said in a statement: “The quality of participants and the investment committed to due diligence reflect the strength of demand, culminating in the selection of a party with the vision and capability to reactivate the site and realise its full potential.”
The buyer would combine global capital and an established brand with local expertise, Baley said, and the proposed development scheme would integrate the tower with the existing Ballantyne House and the White Rabbit building.
“The agreement now on the table marks a pivotal moment for this landmark site, further strengthening the evolving waterfront precinct and the CBD’s commercial heart.”
Receiver Brendon Gibson, of Calibre Partners, said securing a conditional agreement with a buyer of “exceptional standard” was an important step, and the focus was now on progressing the due diligence and remaining contractual conditions.
Last month, media reported that a buyer had been chosen from a short-list of ten potential new owners.
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Bayley said at the time that it had received offers from a range of local and offshore parties. “Following a review of those submissions, Shundi Customs Limited (In Receivership and Voluntary Administration) has elected to engage with one preferred party on an exclusive basis.”
Bayley, Bayleys head of commercial Ryan Johnson and Bayleys head of projects Suzie Wigglesworth were listing agents for the property.
The New Zealand Herald reported this month that the buyer was planning to complete the building and operate it as New Zealand’s tallest hotel.
It named Hotel Properties of Singapore as the preferred purchaser.
“Stephen Lau of HPL Hotels & Resorts did not respond to questions about whether that business was negotiating to buy the ghost tower,” the New Zealand Herald reported.
“People in the sector said he just may be the person to ask. He was involved in Hotel Properties’ $180m purchase last year of the InterContinental Hotel Auckland from Precinct Properties.”
Experts believe demolishing the Seascape would be a costly exercise. Photo / Sylvie Whinray
The Herald reported that the waterfront block at One Queen Street was Hotel Properties’ first purchase in New Zealand.
Last year, Hotel Properties company secretary Joanna Lim issued a statement that indicated the company’s desire to be here.
“The transaction will allow HPL Group to expand its hotel portfolio in New Zealand. Auckland is New Zealand’s largest city, home to more than one-third of New Zealand’s population," the Herald reported.
“The city is the gateway to New Zealand, with more than 70% of visitor arrivals entering through Auckland International Airport.”
In June, OneRoof spoke to Johnson, who was in Singapore talking to would-be Seascape buyers as part of a global roadshow.
Johnson described the property as an “irreplaceable asset” and said it was attracting serious interest.
At that time there were 44 interested buyers in their data room, which was a “huge amount”.
“The data room is for those who sign NDAs (Non-Disclosure Agreements) and start spending money - looking at documents and doing their due diligence.”
The tower has been a feature of the Auckland skyline since construction began in earnest in 2019. Photo / Supplied
Once potential buyers submitted an expression of interest, the process moved to stage two, where a certain number would be selected to have access to more sensitive information. At the end of stage two, the favoured candidate would be allowed to conduct full due diligence, which might require another two or three months – at that time Johnson predicted an actual sale might not happen until October.
OneRoof spoke to a range of people about what could happen to the tower, including a demolition expert who said pulling the tower down would be complex and expensive, but doable.
Peter Ward, managing director of Ward Demolition, said: “Anything you build you can de-build.”
While the building was safe for a few years, the longer it was left, the steel and other components would degrade, he said.
The Seascape was set to house 221 apartments across 56 storeys, but the project had been plagued with problems from the start, including concerns over the building’s fire safety plans and issues with the foundations.
In April, there had also been reports that paint was blowing onto neighbours’ decks and the footpath below.
Work had started on the tower in 2017 but halted in 2024.
The Seascape deal joins a growing list of mammoth commercial property transactions this year. The Herald reported last month that there were $2.02 billion of deals in the first half of this year, including the $300m sale of a 50% share of Auckland’s PwC Tower in Commercial Bay to global investor PAG Asia.
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