A multi-level office building in a prime Hamilton CBD location that is fully leased to a collection of blue-chip tenants is being presented to the market for sale and offers prospective purchasers the opportunity to acquire a premium asset.
Building E of the Union Square development on Anglesea Street has 5,099sq m of space spread across five office floors and a ground floor business centre that also houses multiple retail tenancies. There are 112 car parks in a purpose-built on-site car parking building, known as Building A.
The tenants include Kiwibank, law firm James & Wells, and consultants BBO Engineering, among others. Most of the lease agreements are for nine years and include future rental increases. The total annual rental income from the property is $2,269,949 plus GST.
Union Square is Hamilton’s premier office and retail development that delivers a high-quality commerce environment for the Waikato region.
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The master-planned development is set out over an 11,000sq m block and will eventually consist of five prime-grade office buildings around an activated green space alongside 18 retail units.
The development is strategically located at the south end of the city’s CBD and offers access to multiple public transport options, childcare providers, and hotels.
Within a short walking distance, tenants of the subject building can soak up the culture of Hamilton’s vibrant south end that includes a museum, theatre, cafes, bars, and award-winning restaurants.
To date, two of the five office towers, together with the on-grade car park building, have been completed. The car park has a total of 322 car parks, the end of trip facilities, and central infrastructure for the precinct.
The stratum in freehold property was constructed in October 2023 and has a 100 per cent NBS rating. It also has a strong focus on sustainability, which will be attractive for investors.
Alan Pracy, Director at Colliers Hamilton, has been exclusively appointed to market the property for sale via deadline private treaty closing at 3pm on Friday 6 June, unless sold prior.
Pracy says this is one of the most impressive office buildings available for purchase in Hamilton and will appeal to discerning investors given the strength of the tenant covenant.
“This building has high-calibre tenants that have made long-term commitments to the location by largely signing up to nine-year leases,” Pracy says.
“The lease agreements include a mixture of two or three-yearly CPI rental reviews with further market reviews on renewal. This provides considerable potential to grow the rental income in the future.”
The Union Square precinct offers tenants access to modern end-of-trip facilities that include bike parks, showers, lockers, hair dryers, and irons.
Tenants also have access to shared meeting rooms within the business centre that include breakout areas designed for collaboration.
“The location of this development means tenants have everything they need within a few minutes with retail and hospitality options all a short walk away.”
Hamilton sits in the middle of New Zealand’s ‘Golden Triangle’, the economic powerhouse of Auckland, Hamilton, and Tauranga that is responsible for approximately 56 per cent of the country’s freight movements and half of its GDP.
With a population of approximately 190,000 people, Hamilton has been growing steadily and data from Infometrics notes Hamilton City grew by 3 per cent in 2024.
- Supplied by Colliers
