SINGAPORE - Roxy-Pacific Holdings and Chip Eng Seng have jointly acquired a Grade A office building in Auckland, New Zealand, for NZ$174 million (S$175.5 million).

The two listed companies each owns a 50 per cent stake in the joint venture that bought the property in 205 Queen Street, which comprises two office towers and a retail podium, the companies said in a statement on Aug 3.

This marks Roxy-Pacific's first foray into the New Zealand commercial property market, "where we see an opportunity to capitalise on its upward trending market cycle", said executive chairman and chief executive Teo Hong Lim.

"With favourable market indicators, we are optimistic to raise occupancy to 100 per cent in the near future so as to maximise rental yield," he added.

The property sits on a site area of about 3,764 sq m and boasts 25,381 sq m of net lettable area, of which 96.37 per cent is currently leased.

It has a lease term until June 2081, with a right of renewal for a further 98 years until June 2179.

"This property comes with decent yield and is located at a prime location," said Chip Eng Seng executive chairman and chief executive Raymond Chia.

"Amid global and local challenging market conditions, we hope to diversify our operating risk while improving our recurring income with this acquisition."

The companies said the twin office towers - 17 storeys and 22 storeys - enjoy four street frontages in the heart of Auckland's central business district, near landmarks including Albert Park, Auckland Town Hall and the High Street retail precinct.