Iconic Office Building Sells to Private Syndicate
Iconic Wellington Office Building Sells to Private Syndicate
Well known locally as an iconic building on the hill, Todd Park at 3 Heriot Drive Porirua in Wellington has recently changed hands for $7,750 000.
Comprising a quality low rise office building on a total site area of 2.4888 ha, the property was formerly the Mitsubishi Motors car assembly plant and associated offices. The Offices have since been converted for use as an educational precinct.
Todd Park is situated to the west of Titahi Bay Road with good views overlooking Porirua city centre.
“The property sold to a syndicate of private investors facilitated by Malcolm Barrett of GBG Properties,” said DTZ’s Alan Pracy who negotiated the sale. “The investors recognised a real opportunity to purchase a big solid building with a significant land holding. Site coverage is low; the property is well positioned close to many amenities and is 20 minutes south of Wellington. It is a prominent, elevated land mark with a great outlook”.
GBG Properties specialises in creating Joint Venture companies to purchase larger properties. “With Todd Park we have taken an investment horizon of 15 years because we believe that Porirua has extremely good growth prospects over this period. The property itself has a very strong presence and good potential and the new owners are spending a considerable amount of money to upgrade the building to current standards,” said Malcolm Barrett.
The two level office building has a lettable floor area of 7,178 m2 and is currently fully occupied by Mitsubishi Motors New Zealand and Radiola on the ground floor with the first floor occupied by Te Wananga O Aotearoa. All three tenants are committed to further lease terms.
Zoned Industrial with permitted uses including showrooms, warehousing and light manufacturing, the property also includes a long narrow site of approximately 3,718m2 currently landscaped that offers some redevelopment potential.
“The Wellington economy has grown strongly over the last two years, driven by an expanding government sector, strong housing market and growing tourism sector,” comments Alan Pracy, “ and is now well past the bottom of the current office market cycle.
According to Malcolm Barrett of GBG Properties, demand for investment property remains strong. “Interest is predominately from locally based investors and the demand reflects the market's current perception of market conditions which include expectations of rental growth, low vacancy rates and strong tenant demand for space.”