Perth developer & portfolio manager Ascot Capital Ltd (Greg King & David van der Walt) has bought its first New Zealand investment, the Ministry of Health headquarters in Wellington, from local developer Mike McCombie for $80 million.
Mr McCombie (Balanced Investments Ltd) planned to double the size of the former William Clayton Building at 133 Molesworth St, Thorndon, when he bought it from AMP Capital Investors (NZ) Ltd in 2011. AMP acquired it through acquiring Capital Properties Ltd, which listed after taking over the privatised portfolio of Government Property Services.
Mr McCombie paid $14 million for the property and planned to spend another $20-30 million redeveloping it as an energy-efficient, A grade building with larger floorplates and the possible additional of 2 more floors.
That extension is still to happen, now at an estimated cost of $30-35 million, after the Government Property Management Centre of Excellence agreed on a new lease term for a building nearly double the present size. The 15-year lease has 3 rights of renewal for a total 33 years.
The building will be partly demolished to enable the extension, which will take it from an 8012m² net lettable area to 15,504m². All 6 levels will have standard floorplates of about 2900m². A new interior fitout will lift it to an A-grade specification and it will have 70 basement parking spaces. This will enable all the ministry’s 900 Wellington staff to be housed in one location once the project is completed by early 2017.
The building is base-isolated and designed to be one of the most seismically robust buildings in Wellington.
Sole marketing agents Matthew St Amand & Ryan Johnson, of CBRE Wellington, introduced Ascot to the deal.
Ascot Capital Limited specialises in property development & facilities management, but also manages an investment portfolio. It’s had a 50-year lease from the Federal Government since 1998 over Perth’s second airport, Jandakot, and is developing an adjoining 150ha commercial & industrial precinct, Jandakot City. The airport lease has a 49-year extension option.
Attribution: Agency release, Ascot website.