Precinct Properties sells Featherston St office building in Wellington
Precinct Properties has sold a Featherston St tower block for $76m to an undisclosed party.
The tower, which has 13 levels of office space above Wellington's Intercontinental Hotel and boasts harbour views, was sold in line with its latest valuation.
It is the fourth big office building to be sold in less than a month, reinforcing comments from experts that the Capital's property market is bouncing back.
One of those buildings was another Precinct building, 80 The Terrace, which was sold for $36.1m to Wellington investors Mt Everest Properties.
Precinct said it would use the proceeds to plunge into its revamp of Wellington's Bowen Campus behind the Beehive which it hopes to begin late next year.
The company has sold a string of assets recently, raising about $210m in total which will help fund new projects, including its Downtown tower block and Wynyard quarter in Auckland.
Chief executive Scott Pritchard said Precinct had owned 171 Featherston St since it listed in the late 1990s. The building actually had 23 levels but 10 were occupied by the hotel, which was bought by Indonesian-controlled Columna Capital Holdings in 2011.
Asked whether it was a good time to sell in the Capital, Pritchard said the Wellington market was "definitely improving".
"If you think about last year, there wasn't a lot of sales but we have definitely seen more interest in that market in the last six months.
"People are becoming more confident around the Wellington occupier market, I think interest rates are obviously remaining very low and yields for good quality Wellington real estate are still higher than Auckland in particular and still probably present good value. I think investors are realising that."
However, Precinct had no immediate plans to sell any more buildings in the Capital. "It's a very good market and it's one we'll be in for a long time."
Its Wellington portfolio includes the State Insurance Building, Vodafone on the Quay, 125 The Terrace, No 1 and No 3 The Terrace, Pastoral House, Mayfair House, Deloitte House and Bowen Campus.