Wellington, 20 August 2015 – 125 The Terrace, an A-grade commercial building owned by Precinct Properties Holdings limited in the heart of the Wellington CBD, has sold for $65 million to a confidential New Zealand buyer. This significant sale was brokered by Matthew St Amand and Bill Leckie of CBRE Wellington, producing a yield of approximately 8.4%.
A mixed use building, 125 The Terrace features ground and first floor podium retail frontage onto Lambton Quay, four levels of car parking providing 117 car parks, an office entry foyer fronting The Terrace and 13 upper levels of office accommodation. It is surrounded by a wealth of shopping and transport options.
St Amand says, “It’s great to have an investor highly engaged on Wellington come to the table for this attractive asset, and another example of CBRE connecting maiden capital to the capital”.
The complex is leased to a variety of tenants including NZQA, Minter Ellison Rudd Watts, The Canadian High Commission, Overland Footwear and Spark.
Leckie adds, “The diverse mix of national tenants is tribute to the quality of this investment”.
The sale ties in with CBRE’s latest market research which shows Wellington is becoming a more vibrant market place with increased levels of sales and leasing activity. This along with attractive current pricing relative to other major property markets and investment classes as well as the cost of debt may have Wellington set to experience more substantial and widespread yield firming over the coming year.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.