Bowen Campus misses out on first round of govt property review

Precinct Properties New Zealand, formerly known as AMP NZ Office, says its newly acquired Bowen Campus site near Wellington's Beehive and parliament has missed on a contract to supply as much as 60,000sq m of office space for government departments.

The listed property investor in April agreed to buy the 10-storey Bowen State and 15-storey Charles Fergusson buildings from Capital Properties (Wellington), a member of the AMP Capital Property Portfolio,for $50.4 million.

The site is 97% occupied, mainly by the Ministry of Social Development on a lease that runs through to at least March 2015.

The ministry is among state agencies involved in the government's Property Management Centre of Expertise, which in August sought proposals from the market for between 50,000 and 60,000sq m of space for delivery between 2014 and 2017 in Wellington.

Other agencies include the Ministry of Health, Crown Law Office and Ministry of Business, Innovation and Employment.

"The announcement by PMCOE is a disappointing outcome for Precinct," says Scott Pritchard, Precinct's chief executive. "However, we remain very confident in the potential of this site to provide government accommodation in the heart of the parliamentary precinct at Bowen Campus."

Shares of Precinct fell about 2% to $1. They have gained 24% this year. The stock is rated a "hold" based on the consensus of six recommendations compiled by Reuters, with a median price target of 91 cents.

(BusinessDesk)

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2 Comments & Questions

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You really have to ask yourself why Government Property Services sold off their property portfolio when core government services require accommodation.

Another short-term bright idea by the National government.

If people haven't worked it out now, National are asset strippers who work on behalf of the elite – mostly overseas banks and investors.

The only time Labour got involved in asset sales was when Douglas, Prebble and Cargill were in charge. Essentially, a wolf dressed in sheep's clothing. I'd like to see all of their bank accounts now.

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To find the answer to your question'why the govt would sell property and enter leases' could I suggest you head off to your nearest university. Enrol for economics 101, and you should have the answer by half-way through the first lecture.

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