7 October 2003 Media Statement

Wellington Railway Station secured

The government will buy the Wellington Railway Station from Tranz Rail, Finance Minister Michael Cullen and State Owned Enterprises Minister Mark Burton announced today.

The ground floor of the building will continue to provide the existing services for Tranz Metro and Tranz Scenic passengers, while the upper floors will be leased to Victoria University for its Faculty of Commerce and Administration, and to various Tranz Rail divisions including train control.

All tenants will pay market rentals.

“This deal will secure the future of the Category 1 listed building while also assisting the tertiary education sector and fitting in with the government’s plan to secure the assets required to manage and control rail track infrastructure,” the Ministers said.

Money was put aside for the purchase in June this year when the government and Tranz Rail announced the Crown purchase of the track infrastructure. Contingent upon completion of the track transaction, the building is likely to be transferred to the soon to be established Crown-owned rail track entity TrackCo.
In the interim, New Zealand Railways Corporation will act as the Crown’s agent.

The Crown will pay Tranz Rail $8 million plus GST for the building. Victoria University, which is expected to take up occupation in the 2004 academic year, will manage the design and execution of some significant upgrade and compliance works.

The Crown as owner will bear the cost of these - expected to be around $12.5 million. In addition, $2 million has been earmarked for maintenance over the next three to five years, and the Crown will also pay $2.1 million to relocate Tranz Rail from certain parts of the building so that upgrading work can begin.

ENDS

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