Capital’s WelTec building on the market

1:00 AM Tuesday May 5, 2015 Colin Taylor

WelTec occupies the nine storey building at 11 Church St, Wellington.

The nine-story office tower originally built for PwC at 11 Church St in the Wellington CBD has been placed on the market for sale.

The circa1988 building on the southern side of Church Street near its intersection with Boulcott Street sits on a 1157sq m site comprised of four separately surveyed lots.

The Wellington Institute of Technology (WelTec) has occupied the property since and is in its second, six-year term which expires in December 2017. The property returns a net income of $873,499 plus GST per annum.

A new purpose-built building for WelTec and the region’s other polytechnic, Whitireia, will be constructed on the former Deka site at the corner of Cuba and Dixon Streets. It is expected to be completed and ready for occupation by the two tertiary education providers by the start of 2018.

“The Church Street property has a September 2012 capital value of $7,060,000,” says Mark Sherlock of Bayleys Wellington who is selling it by tenders closing on Thursday, May 21.

“The building’s fit-out is configured for the specific requirements of a teaching facility however it has easy access, flexible floor plates, and good natural light so could be easily converted to offices suitable for a wide range of tenants,” he says.

“There are views from the upper levels and the CBD fringe location is certainly in its favour.”

“Pedestrian access passes the building and rises via steps to The Terrace to the west. The property is within easy walking distance of Willis Street via Boulcott Street, Lambton Quay by way of Plimmer Steps, and Victoria University.

“An investor will appreciate the add-value possibilities that the building offers,” Sherlock says.

“Based on dynamics within the city’s housing market, the best and highest use for the property, which is owned by a syndicate, it could be as a three-star hotel or residential conversion.

“That could be for student accommodation or apartment living – we’ll let a purchaser decide on the optimal end use and pursue the viability of any option. There’s 5273sq m of building on offer here and 20 basement car parks. Whichever way an investor looks at it, there’s an opportunity to capitalise on the location.”