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Roxy-Pacific Holdings and Chip Eng Seng Corporation have jointly acquired a Grade A office building in New Zealand for NZ$174 million (S$175 million), with each company holding a 50 percent interest.
Featuring two commercial towers and a retail podium, 205 Queen Street (pictured) is nestled on a 3,764 sq m site, boasting a net lettable area of 25,381 sq m, of which 96 percent is leased. The property’s lease term is set to expire on June 2081, with a right of renewal for another 98 years until June 2179.
Units in the Grade A office building, which enjoy four street frontages within the heart of Auckland’s Central Business District, comes with large and efficient floor plates.
Roxy-Pacific executive chairman and CEO Teo Hong Lim noted that the acquisition marks the company’s “maiden entry into the New Zealand commercial market, where we see an opportunity to capitalise on its upward trending market cycle”.
“With favourable market indicators, we are optimistic to raise occupancy to 100 percent in the near future so as to maximise rental yield,” he said.
Located in a prime location, the property comes with a decent yield, said Chip Eng Seng executive chairman and CEO Raymond Chia.
“Amid global and local challenging market conditions, we hope to diversify our operating risk while improving our recurring income with this acquisition,” he added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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