Serepisos tower on the block

Wellington’s ASB Tower, formerly owned by bankrupt Terry Serepisos is now officially on the market.

The ASB building on leasehold land at 2 Hunter Street, acquired by a Serepisos company for $23.5 million in 2005, has a 2009 rateable valuation of $34.2 million following refurbishment. It is nearly fully leased.

While the market for higher valued buildings is not as strong as it was four years ago, the ASB building is considered by agents to be “readily saleable”.

The prominent 16-level waterfront office building is being marketed on behalf of the receiver, Barry Jordan of Deloitte, by joint agencies CB Richard Ellis and Colliers international.

The building is for sale by international tender closing December 6, 2011, unless sold before then.

Tenants include ANZ Bank, JP Morgan, CB Richard Ellis and Rio Tinto, the Electricity Authority, Korean Embassy, Cisco Sytems, and Milford Asset Management.

Part of a well-known twin-tower complex, the ASB Bank Tower was designed by leading architects Craig, Craig and Moller and built by Mainzeal, with construction completed in 1988.

The building is rated at approximately 70% of New Building Standard (Grade B on the New Zealand Society for Earthquake Engineering’s grading scheme) with the ability to increase to 85% (Grade A).

The tower occupies a 1387sq m leasehold site and offers a net lettable area of 9220sq m plus basement parking for 70 cars. The land is leased from Wellington City Council in perpetuity, with a current lease term that runs for 21 years from January 2006 at a ground rental of $498,000+GST per annum. The rental is reviewable on renewal.

The net income is $2,260,000 per annum from the building’s 84% occupancy. If fully leased, the building could command $2,817,000.

Chris Hutching
Fri, 04 Nov 2011

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Serepisos tower on the block