Australian investment firm sells out of Wellington property market

HP House in Gilmer Tce has been sold for $15.3 million.
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HP House in Gilmer Tce has been sold for $15.3 million.

An Australian investment firm has bowed out of the Wellington commercial property market, selling the last of its three buildings.

Brookfield Australia has sold the HP House - a 13-level office block in Gilmer Tce - for $15.3 million to an undisclosed buyer.

The property is leased by long-term anchor tenant Hewlett-Packard New Zealand. Its lease runs out in 2021.

The sale comes a month after the sale of the company's Conservation House on Manners St and the adjoining TelTower on Willis St to Wellington developer Maurice Clark for $43.44m.

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The building has recently been refurbished for Hewlett-Packard and a seismic retro-fit programme has commenced which, when complete, will achieve 80 per cent of the new building standard. 

HP House in Gilmer Tce, a short street that runs off Boulcott St, was completed in 1988 and refurbished in 2008.

The sale was marketed by Richard Findlay, of Colliers International, and Matt St Amand and Bill Leckie, of CBRE. The sale price represented a yield of 8.5 per cent.

The 9920-square-metre building, which sits on 1763sqm of land, includes offices and 33 basement car parks.

Brookfield Australia has tried for years to sell HP House. The last time in 2014.

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Prior to that, it was put on the market in 2012 when the company listed a portfolio of eight New Zealand properties worth an estimated $280m.

The portfolio included Conservation House and an adjacent office block at 143 Willis St, which was vacated by some tenants last year because of seismic issues.

The biggest chunk of its portfolio was in Auckland, where Brookfield had five properties - Chorus House in Wyndham St, a 15-level office block at 8 Hereford St, the Plaza retail block in Karangahape Rd and Progressive Enterprises' Mangere Distribution Centre.

The distribution centre sold in early 2014 and is understood to have fetched $74m.

 - Stuff

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