Auckland Real Estate Trust announced the consolidation of three strategic properties which will form a new 14,500sqm A-Grade office complex in the core of Auckland CBD, adjacent to the new Aotea CRL station and Sky City. Acquisition of two properties, 60 Federal Street and 16 Kingston Street, that adjoin the existing 87 Albert Street property, for $58 million. The three properties will be repositioned over the next 18 months into a modern and sophisticated urban A-Grade office complex - the "Fusion" repostioning project. Resource consent has been obtained and works have commenced, with a forecast project cost of approximately $25m. Fusion's estimated value at completion is in excess of $160m and is forecast to enhance ARE value by approximately $50m. The location is central to the design strategy, with three key factors: The new $4bn CRL Aotea railway station, which will handle over 20 million passengers per annum and will be Auckland's busiest transport hub upon completion in 2023. Sky City is a $1 billion city within a city entertainment, casino and convention centre. Already an established venue known for its restaurants and entertainment, the new convention centre and hotels will bring increased hospitality options and activity to the area.