In the dynamic landscape of New Zealand’s commercial property market, the first half of 2025 has been marked by a confidence setting boost in activity.
Amidst this renewed vigour, JLL has proudly played a pivotal role. Out of the country’s three largest deals in 1H 2025, JLL facilitated the two that were brokered, both setting new benchmarks within their respective asset classes.
These landmark deals not only underscore a palpable return of investor confidence but also highlight the enduring appeal of quality New Zealand assets in a discerning market.
The sale of the newly developed InterContinental Hotel Auckland for $180 million stands as a testament to the strength and potential of New Zealand’s luxury hospitality sector.
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JLL Hotels & Hospitality executive vice president Nick Thompson says this off-market transaction, facilitated by JLL, represents the highest price ever achieved for a single hotel asset in New Zealand.
“It’s a remarkable vote of confidence in Auckland’s growing reputation as a premier international destination and signals the strategic appeal of hospitality offerings to global investors,” says Thompson.
“The acquisition by Hotel Properties Limited (HPL) from Singapore, marking their inaugural foray into the New Zealand market, speaks volumes about the country’s increasing allure for sophisticated international capital.”
The hotel, having opened its doors in 2024, has swiftly established itself as an iconic fixture overlooking the city’s beautiful harbour, embodying world-class standards and contributing to the vibrant tourism industry within the region.
Another significant hospitality transaction of note is JLL’s sale of the Mayfair Hotel in Christchurch for $31.9m. This boutique hotel, located in the heart of Christchurch's CBD, further demonstrates the strength and appeal of New Zealand’s hospitality assets to both domestic and international buyers.
Complementing these hotel transactions, JLL also brokered the $161m acquisition of Manukau Supa Centa by Property Income Fund, managed by Willis Bond. This sale marks the largest retail property transaction in Auckland since 2014 and the most substantial large-format retail (LFR) asset sale in New Zealand’s history.
JLL also brokered the $161m acquisition of Manukau Supa Centa by Property Income Fund, managed by Willis Bond. Photo / Supplied
The competitive sales process for Manukau Supa Centa attracted over 13 expressions of interest from both local and offshore investors, signalling a healthy return of capital depth and liquidity in the New Zealand retail market.
Another retail transaction of note is JLL’s sale of the iconic Reading Cinema complex in Wellington’s Courtenay Place for $38m. The historic entertainment venue, sold to Primeproperty Group, showcases the continued appeal of prime retail assets in New Zealand’s key CBD locations.
Chris Dibble, JLL NZ Head of Research and Strategic Consulting, notes these transactions hint at what to expect in the commercial and industrial sector over the medium term.
“Our completion of two of the three largest transactions in the first half of 2025 demonstrates that capital is actively seeking quality opportunities in New Zealand now. The significant interest we saw in both deals reinforces that while the market remains selective, there’s substantial depth of demand for the right assets. These transactions are particularly encouraging because they span different sectors showing that investor appetite isn't confined to a single property type.
“What we’re seeing is institutional capital recognising that New Zealand offers compelling relative value, especially as monetary conditions continue to improve. The interest levels in these deals suggest we’re moving beyond the price discovery phase typically prevalent at this time in the cycle into genuine execution, which is exactly what we need to see for broader market momentum to build.
“These transactions also highlight the importance of scale and quality in today’s market. Both assets represent institutional-grade opportunities that align with current investor preferences for defensive income streams and strategic locations. As we progress through the remainder of 2025, I expect we’ll see more evidence of this capital deployment across the office, industrial and mixed-use asset classes.”
Research from JLL recently published on the retail, industrial and office sectors point to a number of critical features of our market that will continue to support transactional activity.
New Zealand’s office market presents a compelling case for investment, characterised by a clear “flight to quality” and attractive long-term returns. New Zealand’s retail property market demonstrates significant resilience, with high-quality, well-located retail assets continuing to attract premium pricing and institutional investment.
Another retail transaction of note is JLL’s sale of the iconic Reading Cinema complex in Wellington’s Courtenay Place for $38m. Photo / Supplied
The industrial property sector stands out as a prime investment opportunity, characterised by solid market dynamics and consistently dominant performance across commercial property indicators. This is reflected in two recent sales facilitated by JLL of 86 Ascot Road in Mangere and 2 Freight Place in Wiri for $14.2m and $14.8m respectively.
“These industrial sales demonstrate the sector’s resilience and investor appetite for well-located assets with strong fundamentals,” says Richard McNaught, JLL NZ Head of Logistics and Industrial.
“Both properties attracted competitive interest, reflecting the ongoing demand for quality industrial stock in Auckland’s established precincts. The pricing achieved validates our view that industrial remains a cornerstone investment class, offering stable returns in an evolving market landscape.”
Todd Lauchlan, JLL NZ managing director and head of capital markets believes these transactions act as a clear affirmation of New Zealand’s enduring appeal on the global investment stage.
“Our role at JLL is to understand the intricate dynamics of our local market and thoughtfully connect exceptional assets with discerning capital. The successful sales illustrate that investors are increasingly looking beyond short-term fluctuations, favouring robust fundamentals, defensive income streams, and long-term growth potential.
“It’s about building lasting value, and New Zealand offers a compelling environment for that. We’ve seen significant offshore interest, indicating a sophisticated understanding of our unique market strengths. These landmark transactions are clear indicators of a broader market shift, where confidence is returning, and capital is actively seeking out prime opportunities that align with long-term investment strategies.”
Looking ahead, the success of these record-breaking sales serves as a powerful signal that New Zealand is firmly on the radar for significant commercial property investment.
JLL remains dedicated to leveraging its global platform and local expertise to continue facilitating such impactful transactions, contributing to the health and growth of New Zealand’s commercial property sector.
Supplied by JLL
