Precinct Properties aims for 50% office pre-commitment of Auckland Downtown Carpark towers

“The initial development phase will focus on the premium office, retail and public spaces, with flexibility being retained for the residential and hotel tower to be delivered as a future stage.”

Architects Warren & Mahoney showed this design for Precinct Properties’ two soaring new towers on the site of the Downtown Carpark site in Auckland CBD. Precinct said Warren & Mahoney and Oslo-headquartered architects Snohetta had designed the development.

A subcommittee of the board has been established to provide project oversight before any commitment decision is made.

In July, the scheme won draft fast-track consent, despite Auckland Council planners calling it an inappropriate development because of its 250-metre height.

Towers of 55 and 45 levels are proposed. Those are to rise on the Downtown Carpark site, which Precinct bought from Auckland Council’s Eke Panuku for $122 million.

Precinct Properties’ plans for for two towers on the Downtown Carpark site. This shows the two new towers to the right, with SkyTower on the far right.

This is an extension of Precinct’s $300m-plus residential push.

Precinct today issued its full-year result.

Devaluations pushed the company to record an $8.2m net loss after tax after last year’s $11m profit.

Operating profit rose from $152.3m last year to $162.7m in the year to June 30, 2026.

From left, Scott Pritchard of Precinct Properties, Shane Brealey of Simplicity Living, Simon Woodhams of Property For Industry, Steve Evans of Fletcher Living, James Spence of Goodman Property, Philip Littlewood of Stride Property, Simon Thomson of Auckland Airport, Peter Mence of Argosy Property, Mark Francis of Asset Plus and Centuria NZ, Brett Russell of The Russell Group and Dominion Constructors, Chris Meehan of Winton Land and Clive Mackenzie of Kiwi Property Group. Photo / Dean Purcell, Illustration / Phil Welch

Pre-tax operating profit rose from $82.7m to $90.9m.

But devaluations amounted to $107.5m, a big rise on 2025’s $27.6m writedowns.

Precinct owns Commercial Bay with the PwC Tower as well as the HSBC Tower on Quay St and Deloitte Centre facing the waterfront.

Precinct owns $3b of property directly but has a further $2.2b of committed capital with partners.

Precinct Properties chief executive Scott Pritchard earned $2.4m in pay in the 2026 year, up on the previous year’s $2.2m. Photo / Dean Purcell

Portfolio occupancy remained high at 97%, with the weighted average lease term increased to 7.1 years compared to six years in 2025.

Rent reviews had delivered an average uplift of 3.3% on 156,090sq m, or more than 60% of the investment portfolio.

Commercial Bay retail sales were up 5.6% on the prior year and nine new retailers were introduced to the centre.

Rodd & Gunn’s The Lodge restaurant in Commercial Bay. Photo / Babiche Martens

Operations were simplified with the exit of the Commercial Bay Hospitality business and the InterContinental Hotel sale completed.

Its partnership with global institutional investor GIC had expanded through the $205m acquisition of ASB North Wharf in Wynyard Quarter.

Precinct also established a new $600m investment partnership for a 50% interest in the PwC Tower with PAG, a global investment firm and existing capital partner.

Student accommodation

Construction at 256 Queen St will result in a new purpose-built student accommodation block.

Building work is also underway at 22 Stanley St, where another new student tower is rising.

All up, Precinct is developing 1600 student accommodation rooms on the two Auckland sites.

Plans for New Zealand’s largest purpose-built student accommodation tower at 256 Queen St in Auckland CBD. Photo / Precinct Properties

Pritchard cited a weak and volatile economic environment but said the annual result was a testament to the quality of the company’s portfolio and the effectiveness of its strategy.

“During the year, we expanded our relationships with leading global capital partners, completed 55 Molesworth St and progressed our purpose-built student accommodation and residential strategies.”

The board forecast total combined cash dividends in the 2027 year to be 6.75 cents per share, around the top of the company’s dividend policy.

The annual report showed Pritchard was paid $2.4m in total for FY26, including a $1.05m base salary.

Last year he earned $2.2m and before that $2m.

Shareholders will get a FY26 full-year dividend of 6.75cps, reflecting a payout ratio of 92%.

Te Pūmanawa o Tāmaki

By Precinct Properties with Ngāti Whātua Ōrākei.To rise on the Downtown Carpark, Fanshawe St.Tower one, 55 levels or 227m high.Tower two, 45 levels or 162m high.Site bounded by Fanshawe St, Lower Hobson St.Opposite the Tepid Baths.62,500sq m office space.51,000sq m of residential gross floor area.300 to 350 apartments.2500sq m of retail and hospitality.3300sq m of new public space.Five-level basement for 613 car parks.Only for apartment and office owners/tenants.No more cheap Downtown car parking, as it is now.Links to podium areas of Aon House and HSBC Building to enable connection and access through the 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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