New Zealand property group Precinct Properties has sold a 50% stake in the NZ$600m (€300m) PwC Tower in Auckland to global investment manager PAG, in what the company describes as the largest office asset transaction in the country’s history.
The 39-level PwC Tower was developed by Precinct as part of the transformational Commercial Bay development on the waterfront of New Zealand’s most populous city and completed in 2020.
Scott Pritchard, CEO of Precinct, said: “The PAG transaction is highly consistent with our strategy to grow capital partnerships and demonstrates Precinct’s ability to continue to execute on its strategy through challenging global market conditions.”
Global investors were increasingly drawn to New Zealand for several reasons, Pritchard added, including strong historical returns, a capital-friendly tax regime and favourable market dynamics for premium assets.
“Premium New Zealand assets are currently priced attractively compared to many other gateway cities around the Pacific. Precinct also has a proven track record in property development, management and capital partnerships and New Zealand’s stable legal and political system is an advantage for long-term capital partnerships.”
He added that aside from favourable currency exchange, international capital partners were attracted to the country because of the exemption of stamp duty, land tax and a capital gains tax.
“While many New Zealand investors remain cautious, we’re seeing increasing interest from offshore investors who recognise the long-term fundamentals,” Pritchard said. “Australian capital, in particular, is taking a fresh look at New Zealand as a market that offers both stability, policy certainty and attractive relative value.”
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