Ian Cassels’ The Wellington Company Ltd has sold its Spark Central building in Wellington for $197.5 million, 3 months after CBRE launched a marketing campaign.
Rent at a net $14,491,781 + gst puts the yield on the sale price at 7.34%.
The building at 40-48 Willis St, completed in 2011, has been bought by an investment group represented by Queenstown law firm Mitchell Mackersy. The unconditional sale will be settled in early 2019.
Image above: Spark Central’s Willis St frontage.
Below: The pedestrian link through the Spark Central site.
CBRE Wellington managing director Matthew St Amand & NZ executive chair Brent McGregor said it was the biggest single office sale in Wellington.
Mr St Amand said the property attracted strong interest from international investors, drawing offers from Germany, Singapore, Hong Kong & Australia: “We were delighted that Wellington continues to be a destination of choice for offshore investors, but ultimately the strongest offer came from our own backyard.”
The 2-frontage 3658m² site has a 12-storey refurbished heritage building on Willis St and a new 11-storey office tower on Boulcott St, 3 levels of basement parking & an internal pedestrian link connecting the 2 streets.
It has floorplates ranging from 1336-2837m², a net lettable area of 28,000m² and a 5-star green star rating. Tenants include Spark, media group Stuff, insurer AMP and the Bank of NZ.
Mr Cassels said the strong interest & sale pointed to renewed optimism in investing in the capital, and Mr St Amand agreed: “Investors look for quality assets with strong investment fundamentals. What we are seeing now is that the things that traditionally made investors nervous about Wellington – the weather, the distance & the possibility of the occasional earthquake – aren’t the city’s defining features anymore.
“Spark Central is one of the largest & highest quality office assets in the Wellington cbd and is home to notable tenants including Stuff, Spark, BNZ & AMP – all of which is a testament to the way in which future-focused development can make an attractive proposition.”
Attribution: Agency release.