Announcement
GENERAL: ARG: $64 million development planned for Wellington CBD
02:39pm
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
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