Auckland multiple award-winning building

5:00 AM Saturday July 29, 2017 True Commercial

The six-level sustainable NZI Centre building at 1 Fanshawe St. Photo / Supplied

A multiple award-winning, sustainable, office building with a national tenant on the main thoroughfare of Fanshawe St is for sale in downtown Auckland.

“Known as the NZI Centre, it’s an architecturally-spectacular and high-quality corporate headquarters,” says Jason Seymour of Colliers International who, with colleagues Richard Kirke and Blair Peterken, is marketing 1 Fanshawe St exclusively by deadline private treaty closing August 31 - unless sold earlier by negotiation.

Seymour says the sale represents a chance to acquire an outstanding trophy investment property in Auckland’s CBD.

“Located on a highly-visible corner site, it sits at the gateway between Auckland’s CBD and its fast-growing western fringe.

“The building is fully leased to IAG New Zealand which makes this an opportunity to acquire a landmark building with an outstanding tenant covenant.”

Completed in 2009, the building has won a number of industry awards for commercial architecture and green design. Its innovative design includes LED lighting, twin-skin curtain wall glazing with automated blinds, and raised floors with underfloor air distribution.

The building was awarded five Green Stars by the New Zealand Green Building Council and was the first property in Auckland to be given 5.5 Stars under the Government-backed National Australian Built Environment Rating System NZ (NABERSNZ) energy efficiency rating system.

The building has been recognised with six industry awards for architecture and sustainable design, including the Property Council’s Supreme Award in 2010.

“The judges said its design blended with adherence to sound property investment principles, while delivering one of New Zealand’s most energy efficient buildings,” Seymour says.

New Zealand Green Building Council chief executive Andrew Eagles notes the NZI Centre building is “one of the most energy efficient buildings in the country. A five Green Star Design rating and five Green Star Office Interior rating represent excellence in building practice. In addition, the NZI Centre has achieved a 5.5 NABERSNZ base building rating, the highest in Auckland to date.”

Seymour says the building’s large floor plates of about 1900sq m benefit from 3.3m ceiling heights. Each floor provides spacious, airy offices which are soaked in natural light from the floor-to-ceiling windows.

True Commercial - 1 Fanshawe St Auckland CBD - road frontage.jpg

The architecturally-spectacular building has a net lettable area 9446sq m. Photo / Supplied

“The five-level atrium is clad in striking marble and timber, and features a ground floor cafe,” he says.

“A roof-top garden and terrace can accommodate large groups of staff and clients, with extensive views over the city and Viaduct Harbour.”

Seymour says 1 Fanshawe St earns net passing income of about $5m per annum net.

Over seven years remain on IAG’s 15-year lease, followed by two five-year rights of renewal.

Annual rental reviews are indexed to the Consumer Price Index (CPI) plus 1 per cent, with market reference checks to take place on the eighth, 10th, 12th and 14th anniversaries.

Kirke, International Sales Director for Colliers, says the property is well located on the western side of Auckland’s CBD, about 500m from the city’s main retail strip of Queen St.

“The strategic corner site offers four street frontages, with excellent exposure to traffic on Fanshawe and Nelson Sts,” he says. “It is close to Victoria Park and the Viaduct where there is a busy mixed-use hub of office, hospitality and residential tenants. The nearby Wynyard Quarter is the home of some of New Zealand’s largest corporations.”

Kirke says the property offers easy access to the motorway system, the main bus and train hub at Britomart, the Ferry Terminal and Westhaven Marina.

Peterken says tenant IAG New Zealand is a leading general insurance provider, accounting for 44 per cent of the market.

“Its products are sold directly to customers through its State and AMI brands, as well as through insurance brokers and representatives under the Lumley and NZI brands,” he says.

“IAG also underwrites insurance for some of New Zealand’s major financial institutions such as ASB, BNZ, The Co-operative Bank and Westpac.”

The company employs 3500 staff nationwide. Its parent company, IAG Australia, has an AA- rating from Standard and Poors.

Peterken says 1 Fanshawe St has a net lettable area 9446sq m on a 2604sq m perpetually renewable leasehold site.

He says leasehold investments have continued to attract strong interest from investors seeking the substantially higher cash returns offered by leasehold assets compared with freehold.

“Over the last few years there have been a number of acquisitions of leasehold properties in Auckland by sophisticated overseas institutions that recognise the investment potential of this interesting investment class and the benefits and natural advantages of the Viaduct Harbour area.”

Peterken says the building has 9312.50sq m of office space in total.

“The basement has 65 car parks as well as end of trip facilities, including bike storage and showers,” he says.

“The ground floor comprises a reception area with several seating areas, a public cafe, a central lift lobby, office space and meeting rooms. The four upper levels provide modern, predominantly open-plan offices with quiet collaborative spaces in various places on the floors.”

Peterken says the rooftop garden and terrace includes roughly 500sq m green roof over the atrium, providing thermal insulation and filtration for rain water re-use.

Constructed of reinforced concrete columns, beams and panels, with reinforced concrete floors, the building has a seismic rating of 100 per cent of new building standards.

The building features double-glazed windows on all four facades.

The northern facade features light sensors that control automated blinds between twin-skin curtain-wall glazing, which helps to limit solar gain to the building; while the western facade has concrete fins orientated to reduce heat load but maximise light.