In our June blog, we outlined the first chapter of Fonterra’s workplace journey in Hamilton, its decision to exit London Street and secure two cost-effective CBD sites, South Bloc and North Bloc, as part of a long-term property strategy for its Waikato operations. That decision reflected a careful balance of market options, economics and long-term flexibility, with TwentyTwo supporting Fonterra through market engagement, analysis and negotiations.
Fast forward to now and work is underway on North Bloc at 193 London Street. This redevelopment by Stark Property exemplifies the adaptive re-use strategy that is becoming more prominent across New Zealand’s commercial property market.
The approach involves taking an obsolete building and stripping it back to its structural frame, strengthening for seismic resilience and overlaying new services, fabric and fitout. The result is a building with another 50 years of life, delivering the performance of new stock, but at a lower cost and with less environmental impact than demolition and rebuild.
However, adaptive re-use is not a universal solution. It requires the right mix of building characteristics, a tenant brief that aligns with refurbishment outcomes and an economic model that stacks up against new-build alternatives. In North Bloc’s case, these factors converged to create a viable and compelling workplace solution for Fonterra.
TwentyTwo has advised Fonterra from the outset, framing strategy, leading market engagement and negotiating commercial terms, and continues to provide governance oversight as the project progresses.
North Bloc is a strong example of how adaptive re-use, when applied strategically, can deliver value, resilience and long-term workplace solutions.
