SkyCity buys neighbouring Auckland's AA Centre for $47m
SkyCity has bought nearly the entire Auckland AA Centre on Albert St from listed property company NPT for $47 million.
The AA Centre office tower, at 99 Albert St, neighbours SkyCity's Auckland precinct, which has been undergoing expansion to add hotels, apartments, food and beverage outlets, entertainment facilities and office space.
SkyCity's purchase includes 15 levels of commercial office space, ground floor retail, through-site link connecting Federal and Albert Sts and 90 car park spaces.
The remaining two levels of office space, ground floor retail, and a few car parks is owned by the New Zealand Automobile Association.
Over the next nine months NPT must icomplete $2m of improvements to the building.
NPT spokeswoman Karyn Arkell said the work was "well underway".
Arkell said NPT, which has offices in the building had "no firm plans to relocate yet".
"But the settlement won't go through until July next year, so there is time," she said.
NPT chief executive Tony Osborne said its lease was a "flexible arrangement".
Other tenants include the Department of Internal Affairs, AA Insurance, SkyCity.
SkyCity's "master plan" for the precinct includes the $700m international convention centre, completion of which has been delayed by late design changes and is due to open in the middle of 2019.
It is understood to have been a source of "pain" for developers Fletcher Building as one of a few problem projects that has hit the company's profits.
The precinct will benefit from the increased pedestrian traffic flow anticipated following completion of the City Rail Link, SkyCity said in a statement to the NZX.
SkyCity spokesman Colin Espiner said the company was using the property as "landbanking for the foreseeable future".
He said the terms of tenancies would not be altered, and could be renewed.
Espiner said the precinct was two thirds developed.
"There's still room for a bit of strategic planning."
There was a possibility the company would move its headquarters from Federal House to the AA Centre, and the company could develop Federal House to expand the precinct, Espiner said.
"Sometimes you have to wonder, is it smart to have an office building between two of Auckland's best restaurants?"
On either side of the Federal House are Auckland eateries The Glass Goose and The Grill by Sean Connolly.