Construction start on One Queen St redevelopment project

Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) is pleased to announce that following completion of a comprehensive re-design, construction of the One Queen Street redevelopment will shortly commence.

Building on the success of Commercial Bay since opening almost one year ago, this second stage will comprise a luxury hotel, premium office accommodation and a variety of unique food and beverage options. Importantly, the revised scheme remains fully integrated into the Commercial Bay retail precinct.

Scott Pritchard, Precinct’s Chief Executive said, “Following the decision around a year ago to defer the project due to COVID-19, resolving the best approach to the redevelopment of One Queen Street in a changed market has remained a key focus for our business. One Queen Street occupies one of the most prominent positions within Auckland’s city centre so ensuring the building is contributing to the city centre and to Commercial Bay has been a priority for Precinct. We are very excited to be announcing the recommencement of this project and further progressing the creation of a world class destination”.

Levels 6 to 11 of the 5 star Green Star building will comprise the hotel guest floors for the smaller 139-room (previously 244) InterContinental branded hotel. The balance of the floors will accommodate around 14,000 square metres of premium grade office space, and a roof-top bar on Level 21. With Bell Gully secured for 4,400 square metres of space the overall leasing commitment for the project is 59%.

Construction will be undertaken by LT McGuinness on a fixed price contract with completion due in late 2023. The total project cost is expected to be around $305 million with an expected yield on cost of 6.2% once complete.

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Announcement PDF