TTP sells Sun Microsystems

By Campbell McIlroy

Friday 12th October 2001

Trans Tasman Properties has sold Sun Microsystems House, its first ever development, to Landco's Greg Olliver.

Chief operating officer Bruce Catley said the Maritime Sq building in Auckland's Viaduct Harbour was sold at a yield of just under 10% on contracted rentals.

It is understood Landco bought the building for just under $12 million and will occupy the one vacant level at the top of the six-level building.

Sun Microsystems occupies levels four and five and Solnet occupies level one to three, tenants which have added to the Silicon Alley image of the Viaduct Basin and its surrounds.

Rentals in the building have averaged $325 a sq m with operating expenses of $95 a sq m. Carparks cost $90 a week.

Mr Catley said the company achieved over a 60% return on equity from the development.

He said the project came in slightly under budget and on time.

"Multiplex did a great job on the construction. Our development manager Andrew Lamb, who oversaw the project for us, also did a great job."

He said the approach taken on the development was the approach TTP wanted to develop as it looked to become a more active player in the market as opposed to a passive investor.

TTP bought the Maritime Sq site in September last year as its first development project in New Zealand.

It had successfully negotiated leases for both Sun Microsystems and Solnet by the end of last year, with practical completion being achieved on August 31 this year.

The company is now looking to develop some of its holdings along Fanshawe St between Halsey and Beaumont Sts.

TTP bought about 2ha of land from Jamie Peters' Starline Group in a property trade deal in July last year and has since added another 3370sq m site to its holdings in the area, giving it almost all the land from Halsey to Beaumont Sts, except for the Caltex service station site.

Mr Catley said the company was looking closely at the two vacant sites and would look to address these over the next 12-18 months.

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