Leading New Zealand development company,
the Wellington Company, has appointed Knight Frank to source an investor, joint venture partner or purchaser for what is touted as one of New Zealand’s landmark ‘Next Generation’ office buildings, Telecom Central.
Located in the core of Wellington's CBD at 40-48 Willis Street, the building offers a net lettable area of approximately 28,000 square metres and retail amenity on the ground plane.
Telecom Central will be the Wellington headquarters of Telecom New Zealand.
"The sale of interest in 40-48 Willis Street is part of our long-term growth strategy to remain at the forefront when it comes to commercial development and will continue to grow a portfolio of key development sites in Wellington” Ian Cassels, owner and Chairman of The Wellington Company said.
The expressions of interest campaign will be steered by Richard Horne and Layne Harwood of Knight Frank.
Mr Horne said the building’s location would be one of the draw cards for prospective purchasers.
“New Zealand is becoming a destination of choice for international investors. With a burgeoning commodities based economy, stable government, low interest rates and favourable tax regime for foreign investors, 40-48 Willis Street offers a strong investment opportunity,” Mr Horne said.
“With the weight of Australian Superannuation, the Australian based funds are now looking at opportunities in the New Zealand market place given New Zealand has continued to perform strongly since the GFC. Coupled with close proximity to Australia, the sale provides a unique opportunity to purchase an asset which is in the core of Wellington’s CBD,” continued Mr Horne.
Mr Horne said there was increasing Asian and European investment in New Zealand and notes the recent investment in Wellington office buildings by a German based fund and Credit Suisse.
Mr Harwood said the property was one of the best office buildings in New Zealand with excellent tenant retention prospects and one of the strongest WALE profiles in New Zealand at 9.7 years
“Telecom Central’s office space is underpinned by two blue chip tenants including Telecom Corporation of New Zealand and AMP New Zealand. Primarily anchoring the building, Telecom has committed a lease of 86 per cent of the building until August 2023, and were involved in the design process from the outset” added Mr Harwood.
“The opportunity to purchase a new high quality office building with tenants of this calibre is rare. Coupled with the low vacancy rates for premium grade office property in Wellington, a low incentive regime by comparison to Australia and an office building with no capital expenditure requirements makes this a particular attractive opportunity” said Mr Harwood.