INVESTORS have shown keeninterest in the sale of the police national headquarters building.
The17-storey block at 180 Molesworth St has been put up for sale by Multiplex NewZealand Property Fund.
Thebuilding is expected to sell for around $40 million – the most valuableproperty to go on the market in Wellington since last year when Maritime Toweron Customhouse Quay sold for $62m.
Thepolice lease nearly 90 per cent of the building. The Health Ministry has onefloor and the Justice Ministry share another floor with the Indian High Commission. Annual net income is $3.5m. Built in 1979, the building has a netlettable area of 14,679 square metres and has parking for 35 vehicles.
It was bought by Multiplex in 2006 for $33.5m. Its 2009 capital value was assessed at $29m
It has recently undergone extensive refurbishment which is understood to have included exterior work to fix leaks.
Colliers International agent Bill Leckie said the sale of 180 Molesworth was a rare opportunity to acquire a quality freehold office building with such a strong lease profile.
He said the police occupy 89 per cent of the building and had a long-term lease.
That, coupled with recent upgrade/refurbishment work, gave the block a real point ofdifference.
Brookfields Multiplex spokes woman Kerrie Muskens said proceeds of the sale would be recycled within the fund.
A Wellington market observer said 180 Molesworth St was the best building in Multiplex’s portfolio and the fact that it was being sold was an indication of the pressure on wholesale funds to reduce their debt levels and gearing.
Although marketing only officially started on Tuesday, it is understood there has been strong interest from six parties.
The company’s other Wellington properties include the Conservation Department head office in Manners St, the Telecom Tower at 143 Willis St and EDS House in Gilmore Tce.
Ms Muskens said that the company was not ‘‘actively marketing’’ any of its other properties.
Meanwhile, it is understood Brookfield Mulitplex is looking to sell the $200 million Deloitte Centre in Auckland, which was officially opened last month by Prime Minister John Key.
The 21-storey Queen St tower, which has 23,000 square metres of premium office space, was developed, built, owned and managed by Brookfield Multiplex.
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