16-storey office tower, leased to Todd family, for sale in Wellington
A Wellington office tower, headquarters of one of New Zealand's largest family-owned companies, is up for sale.
The Todd Building on the corner of Customhouse Quay and Hunter St has been put on the market by 678 Trustee, a company owned by Wellington property developer Ian Cassels.
The 16-storey property was built in 1988, and is leased to several well-known corporations including Todd Energy, Oracle and Kiwibank.
The building shares a site with its sister building, the ASB Tower, and the Huddart Parker Building. The Todd Building sits on 1268 square metres of land, which is on a perpetually-renewable 21-year ground lease to Wellington City Council.
Colliers International agent Jim Pinson said all office floors, along with the entrance foyer, had been refurbished and the building had a seismic rating of 75 per cent of new building standard (NBS).
These factors, along with the diverse range of tenants and the high demand in the office market, made it a "truly exceptional offering", he said.
"Buildings located on the waterfront have some of the highest occupancies and rentals in the Wellington CBD office market and are always in demand among tenants."
Office space was in "acutely short supply" in Wellington following the last year's 7.8 magnitude earthquake in November, Pinson said.
"With office space so scarce there has never been a better time to be a central city landlord. Tenant demand is going through the roof and rents are rising as a result."
Office vacancy remains "extremely low" following the loss of nearly 100,000sqm of office space from the market since the quake, he said.
At the same time, demand from tenants looking to move to better-quality buildings with improved seismic resilience remained high, resulting in a tight squeeze on the central city's office market, he said.
Colliers International agent Michelle Chadwick said the Todd Building generated a net income of about $2.18 million, although there was potential to lift the income further.
"For investors looking for stability and diversity of income, this investment offers a fantastic collection of reputable local and international tenants," she said.
"The building's location and presentation also make it well positioned to compete for office tenants in the future. Investment opportunities of this quality and location are exceptionally rare."
Positioned near the Intercontinental Hotel, the building was accessible to a wide range of retail outlets including the David Jones department store, specialty boutiques, cafes and restaurants.