Astute investors recognise the inherent premium attached to corner sites and it’s the kind of strategic positioning long-championed by the late Sir Robert Jones, one of New Zealand’s most influential property investors.
In 2007, Robt. Jones Holdings Limited (RJH), one of New Zealand's largest private commercial and industrial property companies, acquired the Southern Cross Building, a 16-level office tower on the pivotal corner of High and Victoria Streets.
Following Sir Robert's death last year, RJH is reallocating capital within its extensive commercial portfolio.
Bayleys and Colliers have been jointly appointed as exclusive agents to sell this landmark building.
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The property is close to Queen Street and less than 200-metres from the Victoria Street entrance to Te Waihorotiu Station, one of the main nodes of the soon-to-open City Rail Link (CRL).
The building provides a total net lettable area of approximately 7,721sqm comprising a single basement level occupied by retail, a ground floor entry lobby with associated retail tenancies, two podium office levels, 11 upper office floors, and a plant room level.
Constructed in 1974 and regularly refurbished over the years, including the main lobby and amenities provided on each floor, the majority of office plates are configured as fitted suites, a model well-supported by occupiers and one that RJH is renowned for.
The building sits on 872sqm of freehold land zoned Business – City Centre and offers more than 70 metres of dual street frontage which elevates profile.
There is significant public carparking space in the vicinity.
Major occupiers are the Human Rights Commission, Ministry of Architecture + Interiors, Creative New Zealand, and Bendall and Cant Service Company.
The property currently generates net annual income of circa-$2.586 million, with the majority of leases having a combination of fixed annual rental increases and market rent reviews.
There is some vacancy, and the assessed potential income if fully leased is circa $3.305 million per annum, including a two-year vendor underwrite.
59–67 High Street Auckland CBD is for sale by way of international expressions of interest closing Wednesday 3rd June, through Mike Bayley and Ryan Johnson of Bayleys, and Richard Kirke and Blair Peterken of Colliers.
Described as a flagship asset strengthened by sustained capital investment, Johnson says the building will appeal to investors seeking exposure to a rapidly evolving CBD poised to benefit from the CRL.
“RJH has continually upgraded the building to ensure each tenancy presents to a high standard and remains competitive in an increasingly discerning office market.
“Globally, there’s renewed appetite for well-located office assets in core cities, with investors increasingly targeting value-add opportunities where latent value can be unlocked, particularly when these buildings are located near major transit hubs.
“The Southern Cross Building is strategically-positioned and boasts enviable mixed-use zoning which encourages a highly-activated, 24-hour CBD environment that bolsters tenant appeal and long term asset performance.”
Kirke says RJH’s proactive stewardship extends well beyond aesthetics and functionality, noting the vendors have maintained strong tenant relationships and taken a measured, commercially disciplined approach to managing the asset, safeguarding its attractiveness for years to come.
“This management philosophy provides an incoming purchaser with a stable platform for future income uplift and value enhancement,” he explains.
“The property also stands to gain from transformative infrastructure investment through the CRL as global evidence is clear that major transport infrastructure drives stronger tenant demand, rental uplift, and capital value growth, especially within walkable station catchments.
“With The Southern Cross Building located near a major station, there’s potential for accelerated value creation as the CRL comes online.”
- Supplied by Bayleys
