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Substantial Auckland apartment portfolio in five-star hotel complex placed on the market for sale

Tags: Commercial

A portfolio of 23 residential apartments within one of Auckland’s leading five-star hotel complexes has been placed on the market for sale.

A portfolio of 23 residential apartments within one of Auckland’s leading five-star hotel complexes has been placed on the market for sale.

The Pullman Residences tower at 6 Princes Street sits beside the five-star Pullman Hotel. Spread over 14 levels of the tower in Princes Street, the apartment portfolio for sale comprises:

• 13 one-bedroom apartments, each of 70 square metres, and four carparks;
• 9 two-bedroom apartments ranging in size from 94 square metres to 103 square metres, including 2 sub penthouses plus two car parks; and
• 1 three-bedroom penthouse developed over 2 levels of 134 square metres plus one car park

The portfolio includes the Pullman Residences’ three-bedroom penthouse suite, and a pair of one-bedroom sub-penthouse apartments.

The Pullman Residences portfolio is being marketed for sale by deadline private treaty through Bayleys Auckland, with offers closing on October 8. Salespeople David Bayley, Layne Harwood and Paul Dixon said the freehold self-contained apartments were being sold untenanted, and with the potential to have them operated within the Pullman Hotel’s inventory.

“Rarely does a portfolio of this size or quality come onto the market for sale. By its very nature and size, the Pullman Residences collection would suit a private investment fund or property management entity,” said Bayley.

“As apartments, units within the Pullman Residences are fully self-contained and enjoy access to SKY TV and Wi-Fi. The 23 apartments for sale are located from level 4 in the tower up to level 17 at the very top.

“Any new owner of the 23 apartments could look at a variety of tenancy configurations in the future - letting them all to private tenants as apartments, potentially placing them all within the Pullman Hotel management structure as guest accommodation, or apportioning into both avenues for a split-risk profile.”

Constructed in 2006, upper-level apartments within the Pullman Residences block have spectacular views of the inner city and Waitemata Harbour depending on their aspect. The tower is serviced by three electronic key-controlled lifts and is zoned Commercial 8A and 8F.

While the Pullman Residences can be operated under the Pullman Hotel brand, the tower block containing the apartments suites is totally separate from the adjoining hotel block which is currently run as a Government-managed isolation and quarantine facility – with its access off Waterloo Quadrant.

When operating as a standard hotel open to the public, Pullman Residences owners and tenants have access to the Pullman Hotel’s spa facilities featuring a sauna, steam room, and heated 25-metre indoor lap pool, along with a fitness centre, restaurant and bar. The Pullman Hotel also has 16 function rooms – capable of hosting small corporate meetings or banquets, up to a ballroom-sized venue for conferences and larger events. There are two memberships available with each apartment for use of the health club, gymnasium and spa.

Harwood said the Pullman Residences’ Princes Street location in the city’s central business district underpinned the potential for use as either fixed-term lets by executive-level workers, or for private tenancy.

“For those seeking living accommodation in the heart of the city, the apartments within the Pullman Residences are literally of a five-star quality as befitting the hotel’s official Qualmark grading,” Harwood said.

“The quality chattels and fittings are stylish and have been replaced or upgraded regularly over their comparatively short life span – meaning the apartments could be let fully furnished.

“From a letting perspective, the quality of the room fit outs and indeed the tower in which they are located, the venue’s central city location, and the personal health amenities available to residents within the Pullman complex, all combine to ensure premium rental rates could be expected from these apartments.”

Harwood said the portfolio was only being offered for sale as one entity.

“From an ‘on-selling’ perspective, having units within the apartment portfolio located over 17 storeys within the tower enables multiple price points to be offered to buyers – dependent on the size, position and views of the individual units,” he said.

“Having access to the allocation of seven car parks also add considerable benefits to the marketing of individual units for sale - and of course would ultimately add to any pricing expectations should that avenue be explored.”

Each unit within the Pullman Residences portfolio is individually rated by Auckland City Council, and all 23 residences pay into the building’s body corporate fund.

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