Announcement

GENERAL: ARG: $64 million development planned for Wellington CBD 02:39p.m. 
ARG  
24/04/2019 14:39  
GENERAL  
NOT PRICE SENSITIVE  
REL: 1439 HRS Argosy Property Limited  
 
GENERAL: ARG: $64 million development planned for Wellington CBD  
 
Argosy is pleased to announce it is undertaking a $64 million development at  
its 8-14 Willis Street property in Wellington's CBD. The development will  
create a substantially new 11 Level, 11,800m2 building that will target a 6  
Green Star Built rating and 5 Star NABERSNZ energy efficiency rating.  
Construction is expected to take 24 months and be completed by April 2021.  
 
Argosy has entered into a new 15-year lease with the Crown (Statistics New  
Zealand) to occupy the entire building, other than the 500m2 ground floor  
retail component. Argosy is in current negotiations for a lease on this  
space.  
 
Like many Crown departments, Statistics New Zealand are focused on  
sustainability and agile working environments. This means creating flexible,  
adaptable and productive work spaces for employees. The building will be  
designed to attract and retain staff, encourage creativity and collaboration  
to deliver a more effective public service.  
 
Following the successful collaboration with McKee Fehl in the redevelopment  
of 15 Stout Street in 2013-14, Argosy has engaged them as the 'design and  
build' construction contractor. Argosy's obligations to the Crown in this  
project are reflected in our agreement with McKee Fehl.  
 
During construction the building will be strengthened to 130% of New Building  
Standard. It has an independent valuation on completion of $94 million. The  
development is projected to deliver an internal rate of return of 8.2% and a  
7.2% initial yield.  
 
Argosy Chief Executive Officer Peter Mence said "We are very pleased about  
working with Statistics New Zealand and this development is consistent with  
our strategy of creating value through the execution of Value Add  
opportunities. The green development will see Crown employees benefit from a  
refurbished building delivering a modern, functional and appealing workspace  
environment. Argosy investors will benefit from a new high quality and modern  
asset in the portfolio and an increase in net tangible asset backing."  
 
- END -  
End CA:00333670 For:ARG Type:GENERAL Time:2019-04-24 14:39:16