Ministry move lifts tower's appeal

By ANNE GIBSON

The least-glamorous tower in AMP NZ Office Trust's $759 million portfolio yesterday became one of its best properties after a big leasing deal.

The Ministry of Agriculture and Forestry leased almost the entire Pastoral House on Wellington's Lambton Quay, taking a 12-year lease on 14 floors.

The ministry took 12,002sq m or 77 per cent of the building's total net lettable area of 15,580sq m.

Trust executive manager Rob Lang said the building had become one of Wellington's top three office towers in the Government sector.

He predicted the trust's portfolio would nudge $800 million after the next round of valuations.

The trust's purchase of the tired tower from Fonterra Co-operative and BNZ Properties raised eyebrows in the property business last year because the trust was seen to be stepping outside its brief. The deal was regarded as speculative.

The tower required a significant upgrade and just under half of it was empty after anchor tenant Fonterra moved to Auckland.

After paying $23.9 million for the tower, the trust had to spend nearly as much again to bring the building up to standard.

But Lang said the punt had paid off.


Early next year, the trust will finish its $15.5 million refurbishment of the building with frontages on to The Terrace and adjoining the trust's properties at 1 and 3 The Terrace.