property + asset management

Precinct Properties sued over HSBC tower deal

May 27, 2014

The former owner of the HSBC tower on Auckland’s Queen Street is suing new owner Precinct Properties [NZX: PCT] following its sale.
No 1 Queen Street Ltd last year agreed to sell the 21-level tower to the listed company for $103 million.
According to Precinct Properties’ half yearly update in February, the tower was acquired in May 2013 and had benefited from a six-month vendor underwrite.
No 1 Queen Street director Chong Du Cheng told NBR ONLINE Precinct Properties the settlement was different from that expected and a very short notice was given on the settlement date.
Knight Coldicutt director Brett Cran, who is acting for No 1 Queen Street, says the issue is complex but essentially the company believes there has been a breach of contract.
“There was one set of agreements which the parties thought was going to be honoured and but Precinct chose an alternative arrangement.”
Mr Cran would not disclose how much No1 Queen Street wants in payment for the action it deems unfair. While a case management conference was held on Monday, a court date has not yet been set, Mr Cran says.
The HSBC site is 2322sq m and has development potential on the north-west waterfront through Precinct’s ownership of the Downtown Shopping Centre.
The mall sits above the route for the City Rail Link and is next to Queen Elizabeth Square, which Precinct is negotiating to buy from Auckland Council.
Precinct Properties chief executive Scott Pritchard had not responded to NBR ONLINE’s request for comment.

Victoria Young | Thursday May 22, 2014