Two levels for sale in Wellington CBD building

3:31 PM Friday November 20, 2015 Colin Taylor

The high profile Tory St building has Harvey Norman as anchor tenant.

The ground and first floor levels of a fully-leased and high-profile commercial property on a corner site in Tory Street, Wellington have been placed on the market for sale.

Harvey Norman is the anchor tenant in the property which is around 100 metres from Courtenay Place and has three street frontages: the main and busiest facing Tory Street; a long frontage along Tennyson Street to the north; and a similar profile to Lorne Street to the south.

“The two floors for sale are not unit titled but are separate freehold property,” says Grant Young of Bayleys Wellington who is marketing the two levels in the building at 77-87 Tory St for sale by tender closing at 4 pm on December 2.

Young says the property has a floor area of 3401 sq m and occupies a 3364 sq m site.

There are four retail tenancies on the ground floor plus generous adjoining parking for 24 cars. The first floor includes a storage complex, offices and six, one-and-two bedroom apartments.

Harvey Norman has occupied the majority of the ground floor for around 10 years and has just renewed its lease for a further four years with additional rights of renewal.

The other retail tenancies are occupied by the Asiana Cooking School, an Asian produce shop and Capital Care Health Centre. The lease expiries range from 2018-2020 with additional rights of renewal.

“This is exactly the kind of nicely-balanced commercial property that cashed up investors are looking for,” Young says.

“It has a strong tenant covenant underpinned by retail giant Harvey Norman and supported by several other committed tenants; an A-grade seismic rating; and location-wise – it’s a winner.

“With a current net income of $590,802 plus GST per annum, investors will make their own decisions around its value.”

Young says with the New Zealand Institute of Economic Research forecasting strong economic growth for the capital city over the next five years, out-of-town investors could see value in adding a strategically-placed Wellington property such as this one to their portfolio.

“We anticipate strong interest given the scarcity of properties of this type in central Wellington and expect that when the tender box is opened our vendors will be well-placed to sell.”

Young says the Galleria apartment complex, which is situated above the property for sale, does not form part of the offering.