Argosy seals deal on Wellington building

HAMISH MCNICOL
Last updated 13:15 30/07/2013

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Listed commercial property company Argosy Property has completed the $33.2 million purchase of a landmark Wellington office building today after taking seven months to finalise the deal.

The company announced it was buying the property, at 15 Stout St, in December last year but in a statement said the acquisition had taken "some considerable time" to settle.

The building was subject to an agreement to redevelop the property before it would be leased to the Government on a 12-year term, Argosy said.

The redevelopment was expected to be completed by July next year.

In its December announcement, Argosy said it had bought the property for $33.2m and would spend another $46.6m refurbishing it.

It was built in 1939 and was previously the biggest office building in New Zealand.

The building had been empty since 2007, when it was vacated by the Defence Force and Security Intelligence Service.

Argosy's new Stout St property adjoins two other properties in its Wellington portfolio - the TSB Tower and Te Puni Kokiri House.

After the recent 6.5-magnitude earthquake, Argosy reported its buildings received only superficial damage.

Inspections after the quake had cleared the company's assets for reoccupation.

Argosy shares were unchanged from 96 cents shortly after the announcement.

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- Fairfax Media

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