Ensuring tenant safety and enhancing value
The 65B Main Highway facade upgrade
CASE STUDY
65B Main Highway, Auckland
In 2019, PMG’s Direct Office Fund acquired 65B Main Highway as part of the Fund’s strategy of targeting sound, well-located office properties in main metropolitan areas in New Zealand, which provide the opportunity to add value through leasing vacant space and proactive asset management.
The property was well-presented, with ample car parking in a prime Auckland location. It also provided the Fund an opportunity to further diversify its tenant portfolio through the two long-term government tenants that contribute over 80% of the property’s total rental income.
Property insights
The property is in the popular southern corridor area of Ellerslie in Auckland, with the train station approximately 100 metres away.
Built in 2003, the four-level commercial office building has a net lettable area of 4,588sqm.
Challenges
The 65B Main Highway building had a granite-tiled facade, and the adhesive holding the tiles had deteriorated over time. The risk of falling tiles led us to create a thorough plan to reduce the risk.
PMG partnered with Off the Ledge to conduct tap testing inspections every quarter to address any concerns and make necessary repairs. However, as more moisture seeped behind the tiles, we decided that the tiles would need to be removed.
The approach
As part of our commitment to being a property partner of choice and prioritising the health and safety of our tenants, PMG undertook the comprehensive facade upgrade in 2023 to ensure the building’s safety performance while refreshing its appearance.
Due to the scale of the project, we spent time finding the right contractor and chose to partner with Function + Form as project manager James Cosslett provided a comprehensive and practical solution, especially considering that we were dealing with a fully occupied building and managing the risk of working in and around a busy site.
PMG appointed Function + Form to prepare the best methodology for tile removal, project management and tendering for competitive sub-trade costs. They also arranged tendered quotes in key cost areas, including scaffolding, tile removal, painting, and clean-up.
The primary areas tendered included:
Scaffolding Tile removal Waterproofing and repaint
Results
Working closely with Function + Form, we completed the facade upgrade at 65B Main Highway within six months. To minimise costs and consolidate the disruption period, we decided that the best approach was to work on all faces of the building simultaneously. To minimise disruption, most of the work was scheduled to be completed during the end-ofyear shutdown period.
What stood out most about this project was our partnership with Function + Form and the excellent management of health and safety aspects throughout the construction period.
All our suppliers adhered to the highest quality standards by providing us with comprehensive health and safety documentation and permits, ensuring the safe disposal of tiles, maintaining exclusion zones, and managing tenant expectations.
Tenant engagement
The project team held site meetings with tenants to discuss the project program and obtain approvals from all tenants due to anticipated disruption. Throughout the project, the team maintained open communication with tenants to ensure minimal disruption to their operations and promptly address any concerns.
It is commendable to see that despite the nature of the project, by working closely with tenants and Function & Form, and managing all tenant concerns promptly, no complaints were escalated to PMG throughout the building upgrade.
Conclusion
The facade upgrade at 65B Main Highway underscores PMG’s dedication to maintaining the highest health & safety standards while enhancing the aesthetic appeal of our properties. By addressing the safety risks posed by the deteriorating tiles and implementing modern waterproofing and painting techniques, we ensured the long-term safety and attractiveness of the building.
This project also highlights the value of our strategic partnerships, such as with Function + Form, to achieve successful outcomes for our tenants and investors. Contact us
Learn more about investing with PMG and our current opportunities by reaching out to our Investor Relationships team at invest@pmgfunds.co.nz or 0800 219 476.
