'Green village' plan for Tory St

Property  investor Ian Cassels has paid more than $30 million for Telecom's Aldgate Centre and unveiled plans to turn the Tory St property into a "sustainable urban village".

Mr Cassels' firm The Wellington Company has paid "significantly more than $30 million" to buy the four buildings.

He plans to turn the complex into one in which people can live in apartments and work in offices. It could also include a retirement village and shops.

He said such a development was consistent with the worldwide trend for sustainable development, by which all needs - including food, shelter and entertainment - were within walking distance. That would limit the environmental destruction caused by commuting.

"The only good way to transport people is for them to use their legs." The Wellington Company intended buying three or four electric cars to enable tenants to travel around town.

However, the timing of redevelopment will depend on the needs of tenants. Most leases expire in 2010, but tenants have rights of renewal.

Mr Cassels said the property "was magnificent in terms of location", being close to Courtenay Place, Waitangi Park and Te Papa. "Tory St is progressing like a tsunami at 100 miles an hour. It's become a very popular part of town."

The price was well above the valuation of $21 million. But Mr Cassels said valuations were always out of date, as they reflected past transactions. "We're comfortable with the price we paid."

He said the price was just over $2000 a square metre, whereas apartments in the area were fetching more than $6000.