Award winning office tower next to Bowen campus with 15-year Government lease
Strong investor interest is expected for a high-profile Wellington office tower in the heart of the Government Precinct which is on the market.
The 12-storey building at 33 Bowen Street, occupies an elevated, high profile 1,703sqm site next to the Reserve Bank and across the road from the Parliament buildings is being marketed for sale by CBRE New Zealand.
Constructed around 1989 by Fletchers the building recently underwent a substantial refurbishment programme with the upgrade receiving an Award of Merit in 2016 in the New Zealand Property Council Industry Awards.
The building has average floor plates of 1,130sqm and a total net lettable area of 13,157sqm of A+ quality office accommodation. The building has 60 carparks spread over two basement car park levels and was upgraded in 2015 to meet 100% of the New Building Standard (NBS) for seismic ratings.
The building is currently 100% leased to the Ministry of Education (New Zealand Government) on a 15-year lease that commenced in December 2015.
Matthew St Amand, Managing Director of CBRE Wellington, says a property of this quality with a Crown lease covenant is an extremely rare offering.
“This is a prime site within the Government Precinct within close proximity to many other Government agencies and adjacent to the new Government Hub development, Bowen Campus, comprising 40,000sqm due to be completed early next year.
“The A+ grade office space provides attractive high-stud accommodation with natural light from all sides and excellent views over the Tinakori Hills. The Government tenancy offers investors a secure predictable cash-flow and a rent review due at the end of this year.”
St Amand says the building will have added appeal as, since the Kaikoura earthquake, Wellington has experienced a significant fall in vacancy rates, with prime vacancy at a 20-year low and as a result market rents are increasing.
“Wellington has a limited number of buildings offering large floors in excess of 1,000sqm and 100% NBS and, as a result, vacancy in this grade is less than 1%. Consequently, rents are experiencing significant growth and there are no large contiguous areas of space available in the Wellington CBD.
“At the same time, Wellington has experienced a considerable weight of capital over the past three years. This has been driven by a trend of maiden investors, both domestic and international, to the local market (Majestic Centre, HSBC, DOC/VUW, and 133 Molesworth Street) as investors seek the yield premium Wellington offers compared to other Asia-Pacific locations.
“Investor appetite for commercial real estate in the capital remains robust in 2018, as investors look to secure stable income streams and asset class diversification and we’re picking 33 Bowen Street will draw strong onshore and offshore interest.”
CBRE is offering 33 Bowen Street to the market by way of an International Expressions of Interest (EOI) campaign. Prospective purchasers are invited to submit an EOI no later than 4pm (NZST) Wednesday 11 July 2018 and all offers must be provided to CBRE, the exclusive agent.
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ABOUT CBRE GROUP, INC.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com..