Corner site in Wellington with consent for high-rise development on the market
CHLOE WINTER Last updated 05:00, August 21 2017
SUPPLIED
The bare land behind the buildings being sold is part of a rejuvenation plan by Wellington City Council for the Victoria St area.
An inner-city Wellington site with resource consent for a 22-storey mixed-use building is up for sale.
The land is being sold by the owners of an Auckland development company who have decided to concentrate their interests there.
The property, on the corner of Victoria and Bond streets, is home to two, two-storey 1920s buildings, which house small retail and hospitality tenants, with residential accommodation above.
However, the development firm has had plans drawn up, which allows a 22-storey mixed-use development with retail at street level and residential apartments, or rooms, above.
READ MORE: Wellington City Council and property developer begin construction on Lombard Lane revitalisation
Bayleys agent James Chan said while the properties were returning good income, the best use for the site would be to take advantage of the 75-metre height limit.
SUPPLIED
The green and pink buildings, and the 313 square metre site they sit on, are up for sale.
"The existing buildings have served the city well but now require significant remedial work and realistically, the site's future lies in redevelopment to make the best use of the location."
The site could also be used to build a hotel, given the shortage of hotel beds and rising tourism numbers in the capital, Chan said.
As at September 2015, the rateable value is $1.53 million, however the current building owners bought it in April last year for $3.83m.
Bayleys agent Grant Young said the area surrounding the site had seen significant investment and development over the past few months.
"This part of the city has become more of a destination precinct thanks in part to new developments, such as the one in Manners Street, with Michael Hill as an anchor tenant.
"It's certainly an emerging part of town where new concepts are being explored and where commercial tenants wish to be based as evidenced by the very limited retail vacancy in the area," Young said.
"There's also pent-up demand for residential accommodation, which will not be fully-absorbed by the two big apartment developments in the vicinity, the Pinnacle City Residence complex and the Victoria St Precinct apartments."
The Wellington City Council spent around $13m rejuvenating the Victoria St area, and developers were seeing value in being part of the change occurring in that part of the city, he said.
"There are also plans to improve the Bond and Victoria St junction, according to council updates, so the area is seeing significant attention which will bode well for investors who commit to the area."
- Stuff
Comments
Post a Comment