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Developer takes a hit

Developer takes a hit

Date Posted: Oct 12, 2010

UPPER Hutt developer and agent Malcolm Gillies appears to have taken a loss on the sale of an office block in Wakefield St, Wellington.

 

One of Mr Gillies’ companies, Wake Holdings, which owned the building at 181 Wakefield St, was put under the control of a receiver of income in September last year.

 

Receiver Brendon Gibson reported in May that AXA Nominees were owed $11.95 million.

The building has been sold for $10.75m to a Lower Hutt investor. Mr Gillies was not prepared to comment on the sale.

 

Colliers International agent Benet Carroll, who had it listed with fellow agent John Persico, said it was sold after a lengthy due diligence period.

 

The four-storey block at 181 Wakefield St was built in the 1930s. It was retrofitted and strengthened in 2006, when 13 penthouse serviced apartments were added.

 

The building returns a net income of $1.1 million from leases to Lexis Nexis, Fuji Xerox, Toshiba, the serviced apartments and two advertising hoardings.

 

‘‘This sale shows that activity is picking up and investor confidence is coming back on what has been a relatively slow year for large investment sales,’’ Mr Carroll said.

 

He said it was the fifth $10m-plus Wellington CBD sale this year, all of which had been sold by Colliers.

 

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For more information, please contact:

Richard Findlay

Richard Findlay

Managing Director
Wellington Office
DDI: +64 (4) 470-3926
Fax: +64 (4) 499-1550
Email: richard.findlay@colliers.co.nz

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