Wellington, 1 June 2014 – IBM House, the Wellington region’s only suburban premium office tower and one of only a few office buildings in the Hutt Valley with a floor plate of over 1,000sqm, has come up for sale at 25 Victoria Street, Petone.
The freehold, eight-storey building is being marketed by Ryan Johnson, John McKenzie and Brent Ringrose of CBRE on behalf of Century City Ventures Ltd in Receivership.
The building is for sale by deadline private treaty, closing 4pm Tuesday 8 July 2014.
Ryan Johnson, Managing Director of CBRE in Wellington, says that opportunities to purchase land and buildings of this quality and size along Petone’s foreshore are seldom available.
“This is a unique proposition for potential buyers - a wonderful long-term strategic opportunity that will suit developers and investors alike. The area the building occupies has been rezoned recently by the Hutt City Council, which will lead to an increase in development nearby, and should have a positive effect on the demand and price on the property.”
Constructed in 2009, IBM House occupies a 1.3863 hectare site a short stroll from Petone’s Jackson St Retail precinct and the Petone foreshore. The building has had a preliminary seismic assessment showing it to be in excess of 100% NBS. Providing eight levels of four Green Star-equivalent office accommodation, the building also has 250 car parking spaces around the building.
Johnson adds: “It has minimal base building capex requirements, as the building was completed in 2009. In addition, current favourable supply dynamics and high occupancy in buildings over 70% NBS – plus limited development pipelines – mean that this is should be viewed a major opportunity by the market.”
With typical floor plates of 1,360sqm, the total net lettable area of the building is 9,735sqm. 79% leased at present, with a Weighted Average Lease Expiry of 4.2 years, the tenants provide a total net income of $1,914,551 per annum.
John McKenzie says that Fortune 500 company IBM provides 47% of the property’s income. “IBM has been a tenant in the building since its completion in 2009, and has invested significant capital in fit-out and a data centre. They have the option to renew for a total of a further six years, with a lease expiry in 2021.
“Other tenants in the building include Steel & Tube, engineering consultancy Cardno BTO and Greater Wellington Regional Council.
“Potential fully-leased net income in the building is $2,401,299 per annum, which offers a new owner considerable scope for increased income generation. Investors can enjoy solid revenue streams, and the already robust cashflow can be further boosted by leasing out the existing vacant tenancies.”
Brent Ringrose says that the property has genuine tenant appeal due to its location. “Not only is the building in a strategic and prominent freehold location close to Petone shopping precinct, community area and foreshore, but it is also close to transport, with the Petone Rail Station 400 metres away and SH2 a minute’s drive away. This location is very attractive for offering staff all local amenities.”
Ringrose adds that in addition to its appeal to office occupiers, Petone continues to emerge and develop into one of Wellington’s preferred boutique retail, residential, café and restaurant locations.
“The suburb benefits directly from its central location, ease of accessibility, close proximity to the waterfront, and character architecture have become an irresistible draw card to both residential and commercial occupiers, investors and developers equally.
“This location has seen a mix of both refurbished existing buildings and new bulk retail developments, within the immediate area, Countdown have recently developed a large scale supermarket. The attraction of the boutique retail coupled with the combination of excellent cafes and restaurants will enable the location to continue to draw tenants from well beyond the boundaries of Petone.”
About CBRE
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
