Valuable city properties part of big sale

20:33, Feb 18 2013
Conservation House
BIG DEAL: Three Wellington office blocks have been included in one of the country's largest off-market property sales, including Conservation House.

A huge property portfolio estimated to be worth more than $280 million has been quietly dropped on the market by Brookfield Funds Management.

The package, which includes three large Wellington office blocks, has been promoted off- market with a targeted campaign which started late last year.

The most valuable of the three Wellington properties is Conservation House, the Conservation Department's Manners St headquarters.

The other two are HP House in Gilmer Tce and an office block at 143 Willis St.

Conservation House was converted from the Hoyts Mid City cinema complex in 2007 into the city's first five-star green building.

It has recently been assessed as having a B-grade earthquake rating and has 8000sqm of lettable space.


The property is leased to DOC till 2018 and is returning a net income of $2.9m. It is expected to sell for about $30m.

The 15-level HP House in Gilmer Tce, just off Boulcott St, was also refurbished and upgraded in 2007 and has now been rated as having an A-grade seismic rating.

It is all but fully leased to HP, with a lease expiring in 2015.

It has nearly 10,000sqm of lettable space, is returning a net income of $2.5m and could sell for about $25m.

The 11-storey office block at 143 Willis St, which backs on to Conservation House, was mostly occupied until last year by Telecom and subleased to other tenants, including Contact Energy and the Public Trust with leases expiring in May.

Other tenants include the Medical Council and Nursing Council.

The building has 7600sqm of lettable space and is returning a net income of $1.6 million.

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

The Auckland properties are returning a combined net income of about $18m a year.

CBRE managing director Ryan Johnson said this was the biggest portfolio to be put on the New Zealand market in the last five to 10 years.

It was owned by a trust fund being wound up by Brookfield Funds Management.

There were 21 expressions of interest by December 14 and this had now been reduced to a shortlist of 16, which were undertaking due diligence.

Offers close on March 8, although Brookfield has indicated it may then run another round where it invites selected parties to put in final bids.

The Dominion Post