The developer's core business is in office buildings and shopping centres. Photo: 123RF
NZX listed property developer Precinct Properties is making a big push into residential developments in Auckland.
Precinct is buying land in Mount Eden for an apartment block and for a downtown student accommodation complex.
Precinct has an agreement with Eke Panuku Development, an Auckland Council body to buy a parcel of land in Mount Eden.
Chief executive Scott Pritchard said it was a natural extension of its core business in office buildings and shopping centres.
"Precinct has an agreement with Eke Panuku Development to conditionally buy and redevelop a 5250 sqm residential and commercial site at 198-222 Dominion Road and 113-117 Valley Road in Mount Eden, Auckland," Pritchard said.
"You know, Grammar Zone, within a few kilometres of the city centre and really well located, it has all of the characteristics you seem to look for in a development opportunity."
Precinct has also purchased 256 Queen Street with initial designs showing the potential for 500 self-contained units in the 'Purpose-Built Student Accommodation (PBSA) facility," he said.
"The site has frontages to both Dominion and Valley Roads providing easy accessibility to shops, restaurants, and various [forms of] public transport.
"We think with the extent of people that are moving to New Zealand in terms of immigration and with the majority of those that are heading to Auckland, we need more high density living in and around the inner city fringe."
Precinct also announced it would acquire the remaining 50 percent stake in its residential management business, PPRL, the joint venture established with Tim and Andrew Lamont, the owners of Lamont & Co, in 2022.
These investments represented further progress on PCT's strategy to grow its capital partnerships and management fee income.
Pritchard said the company should be able to manage its busy pipeline of projects as it capitalises on soft market conditions to buy land at competitive prices.
"We're seeing great opportunities to get ourselves set up for the next 10 years or so. There are good opportunities out there and we're trying to take advantage of those."