| Roxy-Pacific Holdings and Chip Eng Seng Corporation (CES) have jointly acquire a Grade A office building, 205 Queen Street, in New Zealand for NZ$174.0 million (~S$175.0 million). Roxy-Pacific and CES each owns a 50% interest in Roxy-CES (NZ) Limited, which acquired the prime property that sits on a site area of about 3,764 sq m and boasts 25,381 sq m of net lettable area, of which 96.37% is currently leased. The property has a lease term until June 2081, with a right of renewal for a further 98 years until June 2179.  Centrally located in Auckland’s core CBD, 205 Queen Street enjoys four street frontages and 96% high occupancy. Photo: Company |
Comprising two commercial towers that are 17 storeys and 22 storeys high, and a retail podium, the 205 Queen Street twin tower enjoys four street frontages in the heart of Auckland’s central business district, nearby prominent landmarks including Albert Park, Auckland Town Hall and the High Street retail precinct.
Units in the building boast large and efficient floor plates for greater versatility, while tenants enjoy direct public transportation links with doorstep access to the upcoming City Rail Link Aotea Station.
 “Following the successful divestment of the 59 Goulburn Street property in Sydney at an attractive yield, we have wasted no time in recycling the capital into another yield-accretive investment to strengthen our recurring income streams."-- Teo Hong Lim (photo), Executive Chairman and CEO, Roxy-Pacific |
Mr Teo Hong Lim, Executive Chairman and CEO of Roxy-Pacific, commented, “This acquisition marks our 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% in the near future so as to maximise rental yield.”
Executive Chairman and CEO of CES, Mr Raymond Chia, said, “We are pleased to partner Roxy-Pacific in making inroads into New Zealand’s real estate market. This property comes with decent yield and is located at a prime location. Amid global and local challenging market conditions, we hope to diversify our operating risk while improving our recurring income with this acquisition.”
Auckland has been experiencing record low vacancy rates and low supply of prime property, fuelling upward rental pressures amidst rising business confidence, growing population and employment growth.
