Precinct Properties’ revenue, profit up: advancing 56-level Downtown plans, new hotel announced
Commercial and residential investor Precinct Properties pushed up revenue from $248 million to $266.1m in its latest year, and after a $22.1m loss, it made $11m net profit after tax.
Reporting for the year to June 30, 2025, the listed landlord declared a $3.7b pipeline, saying it would start building its Te Pumanawa o Tamaki/Downtown Carpark project in Auckland’s Commercial Bay next year.
Preliminary design is progressing and now includes a hotel.
Two towers, one up to 56 levels, are to rise on the Downtown Carpark site, which Precinct bought from Auckland Council’s Eke Panuku for $122 million.
Procurement discussions are under way with several main construction contractors and sub-contractors “with good levels of interest”.
Works are expected to start next year, “following pre-leasing and construction procurement”.
Precinct also plans New Zealand’s largest student accommodation block: a $290m 960-unit Parnell giant on Stanley St, to be leased to the University of Auckland. Targeted opening is 2028.
It also plans a new strategic real estate investment partnership with Singapore-based institutional investor, global asset manager and operator, Keppel. Today it was the first time it has named that business although it has previously referred to a Singaporean partner.
The company, headed by CEO Scott Pritchard, plans capital partnerships of $4b to $5b in the medium term.
Precinct is ranked in the NZX top 20.
It declared $3.3b of assets directly held in its 2024 result but said it had a further $1.6b of capital partnering assets under management.
Today, it declared $3.4b of assets and is paying a 6.75cps dividend to investors.
Plans for a joint venture with Orams Group on Beaumont St in the Wynyard Quarter are “advanced” for a commercial office and marine-related development.
The company plans to sell all or part of Commercial Bay’s PwC Tower, not revealing precise plans.
“Precinct is seeking to establish a capital partnership to invest in the PwC Tower. This initiative is consistent with Precinct’s long-standing business strategy. It enables the recycling of capital,” it said today.
Precinct has $1.6b of debt, up from last year’s $1.3b. Its gearing is 41.6% but it can go to 50%. It is looking to cut borrowings via those capital partnerships.
Post balance date, it launched Precinct Flex in its flexible office space model. It rents office space to tech titans Meta, Amazon, IBM and HP but changed the model of that leasing business, which rents desks to those giants in New Zealand.
On Saturday, Pritchard announced a new $100m scheme for St Mary’s Bay: Pillars, a 20-unit four-level project at 99 College Hill.
That is the ninth for the once solely commercial developer which built the $1b Commercial Bay.
Precinct is becoming a big force in the apartment sector.
Pillars is to have 42 car parks, be built by Precinct Properties Wynyard in two blocks, on a 2364sq m site sold by Mansons TCLM, straddling College Hill and Dublin St.
It was designed by Jasmax. The special character of Dublin St means gabled roof forms and setbacks in the new apartments.
Precinct nine apartment schemes, largest to smallest:
- 22 Stanley St, Parnell: $290m 960-unit student accommodation, consented, building started in June, due to open 2028.
- 256 Queen St, 680 units, student accommodation, being planned.
- Pumanawa/Downtown Carpark site: 160 units, not started, being designed.
- Mt Eden: 198-222 Dominion Rd and 113-117 Valley Rd: 120 units estimated, figures unsupplied, consented, work yet to begin.
- Fabric 2, Onehunga, finished next year: 118 units.
- The Domain Collection, Newmarket, completion next year: 65 units.
- York House, Parnell, completion next year: 41 units.
- Pillars, 99 College Hill, St Mary’s Bay: $100m scheme, 20 units, non-notified, consented.
- Joint venture with Orams Group to develop its big Wynyard Quarter site, numbers not announced.
Pritchard earned $2.2m total remuneration in the latest year, up from $2m last year.
In the 2026 year, the board awarded him a 28% increase in his base salary, with the mix of remuneration in short and long-term incentives changing.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.