New Te Waihorotiu train station spurs $74.4m four-building deal by wealthy businesses

“We are literally right on top of what will be the busiest train station in New Zealand,” Bridge said.

“We’ve looked at Sydney, New York, Tokyo and King’s Cross in London and the impact of the opening of large-scale commuter hubs on real estate.

Te Waihorotiu Station, City Rail Link, Auckland CBD. Photo / Sylvie Whinray

“Over five years, such an opening has a substantial impact on retail and office rents, occupancy and even residential values in walking distance of those stations.”

“Auckland is at a turning point economically. You’ve got a bit more confidence, but in the last four years … there were many negative things including Covid, street crime and [the] NZICC [New Zealand International Convention Centre] fire with negativity plus disruption from [the] CRL [City Rail Link] blasting a big barrier through the middle of your town.”

Now, Bridge said, the worst is over.

“Around the world, transport nodes always work and midtown is a big part of a lot of cities.

“It’s been difficult there with [the] CRL and [the] push towards the waterfront,” he said of the recent challenges for tenants and landlords.

“We believe it will all come back, with all the money that’s been spent. The location right opposite the main entrance is important, as well as being right next to SkyCity.”

Stopping all stations – at Te Waihorotiu. Photo / Michael Craig

Accessibility to transport, end-of-trip services and buildings which enhance health and wellbeing are what are expected in offices these days.

Occupiers are demanding better offices and employers want to get their staff back, he said.

“You get people to do that by offering the ability to have all the services around them – bank, doctors, fitness, food, dry cleaners,” Bridge said.

Precinct Properties and Mansons TCLM had been pioneers in the sector, “picking up these trends several years ago”.

The SkyCity Grand Hotel at 90 Federal St is also across the road from the new station. Photo / CBRE

Bridge cited benefits of the CRL and forecast that it could drive up rent, demand and occupancy in the area.

“The NZICC is going well, and [the] CRL will open soon, all in New Zealand’s capital city with respect to business.”

A company incorporated in June, The Auckland Fund, bought the four buildings.

“A small group of private investors from all around New Zealand – but with a strong South Island input – and ourselves, of course, are shareholders via Mainland Auckland Fund JV,” Bridge said.

The investors would contribute to the wider precinct by investing in the buildings, he said.

Mainland Capital’s Ben Bridge.

“We’re looking to upgrade the building for what tenants in 2026 expect to have in a building they want to work in, such as end-of-trip facilities and upgrading the foyer and also removing and rebuilding the top floor, level 17.”

SkyCity is on eight floors of 99 Albert St from six through to 14.

The top floor is vacant and has been for some time, Bridge said.

AA Insurance House as it looked years ago, when the business was a tenant and had naming rights. The building is between Federal St and Albert St and is one of the four buildings which are to be sold to the joint venture.

AA Insurance left the building last decade to move to the Victoria Quarter in a new block, AA Insurance House, developed by Mansons TCLM.

SkyCity’s lease runs out in just over a year, Bridge said.

“There’s some good leasing prospects.”

Brett Russell’s Russell Group was one of the buyers. Photo / Brett Phibbs

Brett Russell of Russell Group said all four buildings would remain as commercial. There were no plans to convert them into hotels.

99 Albert St needs a new roof, he said, although SkyCity had new lifts and air conditioning installed.

There were also plans for the reception lobby.

“We’ve got some cool concepts we’ll share in the next six weeks,” Russell said, referring to work by Jasmax.

99 Albert St in Auckland Central, with the SkyTower to the right. Photo / Mainland Capital

Dominion Constructors would do the building work there.

Bridge said Mainland has $1b of funds invested in commercial, hotel, student, logistics, self-storage and private healthcare real estate nationally.

The Sheraton Christchurch is set to open in mid-2027 after a hotel management agreement was signed with Marriott International by Mainland Capital and the Russell Property Group.

Mainland and Russell Group are also in a joint venture working on Christchurch’s Noah’s Hotel, which is to become The Sheraton Christchurch.

Russell said work on the exterior was almost completed.

A further 40 rooms and a rooftop bar are being added.

The hotel will be a 240-room block.

Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.

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