ING buys Citibank Centre tower in $30.5m deal
Tuesday 27 July 2004
Trans Tasman Properties has sold its partly empty 15-level Citibank Centre office block in Auckland to ING Property Trust for $30.5 million.
By The LandlordThe unconditional sale, due in 20 days, will take the trust's portfolio value up to $335 million.
Three floors of the tower on the corner of Customs St East and Commerce St are empty, but Andy Evans of the trust said Trans Tasman had underwritten the rent on those floors for the next 30 months.
Floors one, five and six are vacant and portions on levels two and seven are also empty - a total of 2163sq m.
But Evans said he was confident it could all be leased because rents were attractive, averaging $220/sq m annually.
Rents were "reasonably pitched" and a far cry from the late 1980s when a former tenant, Magnum, was paying between $350/sq m to $400/sq m.
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Housing confidence has been dealt a hefty blow by the Covid-19 crisis with house price expectations plummeting to new lows.
Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.