INSURANCE giant AMP has sold its grand old former New Zealand head office on Customhouse Quay to a private overseas investor for $29.6 million.
It is the latest in a string of major Wellington property sales this year, as wealthy private investors snap up buildings put on the market by recession-hit institutions.
Colliers International agent Bill Leckie said it was sold by AMP Capital New Zealand to an overseas buyer who did not want to be named.
However, it is understood to be Farhad Vladi, of Hamburg, Germany, who is described as the world’s pre-eminent island broker.
Mr Vladi also owns the historic Old Bank Arcade, just across the road in Hunter St, and is a part owner of the company that bought Mobil in the Park and the Midland Tower on Lambton Quay.
His latest purchase was the AMP Society’s head office for much of its life, but it is now fully leased to Government agencies. Tenants include the Building and Housing Department, the Justice Ministry and Sport and Recreation New Zealand (Sparc).
The seven-storey block, on the corner of Hunter St and Customhouse Quay, has 9107 square metres of net lettable floor space and 29 car parks.
Mr Leckie said the AMP sale showed the strong demand in Wellington for properties priced up to about $25m.
There had been an extraordinary number of sales in central Wellington this year.
While it might be seen as a bad time to buy, because office vacancy levels were expected to rise and rentals were dropping, investors with money in the bank that was returning about 4.5 per cent interest were able to buy buildings and get an investment yield of 8 per cent to 8.5 per cent.
They could expect to make a good capital gain once the market finally turned again.
‘‘The buyers both in New Zealand and Australia are wealthy private investors – all the institutions are completely out of the market.
‘‘There was a similar pattern in Sydney. None of the institutions are buying because they have capital requirements and they aren’t spending the money because they can’t get the debt or bank approval to do it.’’
The sale ends AMP’s association with the site, dating back to 1877, when a wooden building was built on the same spot.
The present building was designed by Edmund Clere, took three years to build and was completed in 1928. It has Wellington City Council and Historic Places Trust listings.
It is described in Historic Buildings of Wellington as one of the best renaissance palazzo-style buildings remaining in the capital.
‘‘Made of sandstone from the Hawkesbury River area of New South Wales, it makes a major contribution to the townscape with its restrained ornamentation, discipline and dignity of design. The main foyer with its four huge Italian marble columns is entered through a grand marble-clad portal on Customhouse Quay.’’
It was restored to its earlier style in 1983. A mezzanine floor was also stripped out to open up the grand ground-floor entry.
It was refurbished again in 2006.
Print this article or Email to a friend