city centre
HARBour city centre
HARBour city centre
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A compelling opportunity to acquire a fully occupied, mixed use heritage building in the heart of the Wellington CBD.
HARBour city centre
HARBour centre
01. Introduction
Foreword
Executive Summary New Zealand as an Investment Destination 02. The Opportunity Investment Highlights 03. Wellington Market Fundamentals Wellington CBD Office Market
Investment Tax
Asset Overview
Stack Plan
Major Tenants
Financial Summary
Location
Sales Process
Sale Method
Disclaimer
01. Introduction
Foreword
CBRE (Agency) Limited (‘CBRE’) is pleased to offer 179-183 Lambton Quay & 29A Brandon Street, Wellington, New Zealand for sale by way of Expressions of Interest closing 4.00pm (NZST), Wednesday 28th May 2025 (unless sold prior).
CBRE is pleased to present an exceptional opportunity to acquire a fully tenanted, mixed-use heritage building in the heart of Wellington’s prestigious ‘Golden Mile’, at 179-183 Lambton Quay & 29A Brandon Street. This prime Lambton Quay location, renowned for its high foot traffic and strong tenant demand, offers investors a secure and diversified income stream.
This historic building boasts prominent street frontage on three sides, providing unparalleled exposure and accessibility. Its strategic position offers immediate access to public transport, food courts, and surrounding office buildings. The property comprises a substantial net lettable area (NLA) of 14,501sqm on a 3,010sqm site. Following the recent strengthening of the adjacent Annex building in 2019, both the primary front and rear structures of this asset achieved a 100% NBS (DSA 2023) rating, following the “Yellow Book” (C4) guidelines.
Currently at 100% occupancy, the property generates a substantial net holding income of $6,459,387 plus GST, with a weighted average lease term (WALT) of 3.68 years.
This strong occupancy rate reflects the demand from both retail and office tenants attracted to the building’s prime location and superior amenities.
This Information Memorandum provides details on the investment opportunity and the sale process. All correspondence and requests for information including arrangements to undertake inspections should be directed to the CBRE team.
179-183 Lambton Quay & 29A Brandon Street is offered for sale by way of Expressions of Interest closing Wednesday 28th May 2025 at 4.00pm NZST (unless sold prior). All offers must be provided to CBRE, the Exclusive Agent.
Matthew St Amand Managing Director
Capital Markets
+64 21 280 3467
matthew.stamand@cbre.co.nz
Introduction
Executive Summary
Address 179-183 Lambton Quay & 29A Brandon Street
Tenure
Title Reference
Legal Description
Freehold & Leasehold
WN4/240, WN7/9, WN7/11, WN9/300, WN43C/468, WN46C/880, 523069, 606118
Par Allotment 70 Wellington City Reclamation, Allotment 69, Part Allotment 68A and Part Allotment 70 Thorndon Reclamation, Allotment 67A Reclamation Port Nicholson, Part Allotment 70 City of Wellington, Lot 1 Deposited Plan 10806, Section 68A Provincial Government Reclamation, Lot 8 Deposited Plan 10806, Lot 7 Deposited Plan 10806
Land Area 3,010sqm
Net Lettable Area 14,501sqm
Car Parking 9
Net Income
$6,459,387 plus GST
Occupancy 100%
Tenants
FNZ Limited, Country Road, Witchery, Dejcuba, Sport New Zealand, Contact Energy, University of Otago, Lumino Dentist, Hnry Limited, Capital Dental Limited, Capital Dentures, One NZ, Wellington City Council – Library, Collective Café
Zoning City Centre Zone
02.
The Opportunity Investment Highlights
Prime Location
Situated on Wellington’s prestigious “Golden Mile” (Lambton Quay), with convenient access via Panama and Brandon Street, this building obtains a sought-after premier CBD position.
A-Grade Seismic Strength
Following a comprehensive seismic assessment, both the front and rear buildings achieved a 100% NBS rating, ensuring structural integrity.
Fully-leased Investment
The building is 100% leased and enjoys a strong diversification of income across multiple tenants.
Strong Amenity Access
Located in the heart of the Wellington CBD and on the doorstep of the ‘Golden Mile’, this asset enjoys immediate access to amenities such as high-end retail stores, food courts, other office buildings and public transport.
Recently Refurbished
The adjacent Annex building underwent significant refurbishments in 2019, contributing to the 100% NBS seismic rating and benefiting anchor tenant FNZ. These recent upgrades also minimise future capital expenditure.
Retail Footfall
With the ‘Golden Mile’ attracting the highest pedestrian count in Wellington, the high-end retail tenants enjoy excellent exposure daily and subsequently pay higher market rents.
02.
The Opportunity
New Zealand as an Investment Destination
New Zealand Offers Unparalleled Real Estate Advantages
The New Zealand real estate market offers a multitude of advantages in comparison to other investment destinations, offering a favorable tax environment, legal certainty, easy access to credit, and strong underlying economic fundamentals.
New Zealand Tax Environment
New Zealand’s property market offers a distinct advantage for commercial property investors: a relatively relaxed low tax burden. Unlike some countries with substantial property taxes. New Zealand’s system prioritises income tax and GST (goods and services tax), with an absence of direct property taxes.
New Zealand Core Advantages
• AA+ Credit Rating places New Zealand in the top 15 countries globally and third in APAC.
• Strong Population growth with 9% forecast population growth from 2023 to 2033.
• NZD offers value, with the USD/NZD approximately sitting 14.3% above its 5-year average.
• 87% of New Zealand’s energy is sourced from renewables.
HARBour centre
Acquisition Costs/Taxes: Stamp/ Transfer Duty
General Land Tax (GLT)
Foreign/Absentee Owners Land Tax Surcharge
Metropolitan Region Improvement Levy
Inflation is Within Target Range
RBNZ have recently announced that inflation is within the target of 1-3%, sitting at 2.2% as of January 2025.
03.
Wellington Market Fundamentals
Wellington CBD Office Market
175bps of Softening in the OCR
Since August 2024, the OCR has decreased from 5.5% to 3.50%. These reductions are forecasted to continue.
Interest Rates Steadily Declined
From the Covid era to date, the two-year swap rate has seen a deduction of over 200bps and the 10-year government bonds declined roughly 100bps.
While many owners of office buildings are lamenting higher vacancy rates, the market remains relatively healthy. When looking at Prime grade office space, Wellington has the lowest vacancy rate (6.0%) among all major cities in Australasia. Wellington’s office property market remains one of the strongest in the Asia-Pacific region, even amid challenging global economic conditions.
Prime Vacancy by City
CBD Prime Vacancy by City
The city’s substantial Government occupier base, known for its stable, long-term occupancy, has historically shielded the Wellington office property market from fluctuations, particularly within the CBD Prime office sub-market. This stability is reflected in the good rental growth experienced in Prime buildings in the CBD, with an average growth rate of 5.6% per annum during 2021-2024.
Despite the current economic headwinds, demand for prime retail locations on Lambton Quay is consistent, underpinned by positive occupier interest in available spaces.
This stability is also reflected in the good rental growth experienced in Prime buildings in the CBD, with an average growth rate of 5.6% per annum during 2021-2024 as seen in the graph below.
CBD
Frontal Building
This seven-story building, prominently positioned on Wellington’s prestigious ‘Golden Mile’, offers a compelling mix of retail and office space. The Ground Floor and Mezzanine feature high-exposure retail premises, currently occupied by established international tenants, leveraging the area’s high foot traffic. The six upper levels provide premium office accommodation, attracting reputable businesses drawn to the building’s prime location and superior amenities. Internally, the building includes impressive features, featuring marbleclad lobbies and light-filled office spaces, creating a desirable environment for tenants. This combination of prime retail frontage and high-quality office space makes it a sought-after destination for both shoppers and employees.
Annex Building
The Annex Building, accessed via Brandon Street, offers a premium commercial environment. Anchored by prominent tenant FNZ over the three office floors and Mezzanine, this recently refurbished building provides high-quality office space. The Wellington City Council - Library and Collective Café occupy the Ground Floor. 2019 upgrades, contributing to its 100% NBS seismic rating, created a modern workspace. Recent fit-out works have also delivered an open-plan layout, enhanced amenities, and an internal atrium-style stairway, with a louvered glazed ceiling maximizing natural light. The car parking is accessible in the Annex building via Panama Street and also offers bike parking.
HARBour city centre
Lambton Quay
FRONTAL BUILDING
Brandon Street
Panama Street
Featherston Street
ANNEX BUILDING
1,162sqm
5 1,225sqm
1,227sqm
4 1,201sqm LEVEL 3 1,420sqm LEVEL 2 1,426sqm LEVEL 1 902sqm MEZZANINE 2,329sqm GROUND
RESERVE
WELLINGTON BOTANICAL GARDENS
WELLINGTON STATION
HARBour city centre 179-183 LAMBTON QUAY & 29A BRANDON STREET
WELLINGTON CENTRAL
WELLINGTON WATERFRONT
VICTORIA UNIVERSITY OF WELLINGTON
TARANAKI STREET KENT TERRACE
MOUNT VICTORIA
COOK
WELLINGTON REGIONAL HOSPITAL
ORIENTAL BAY BEACH
MOUNT VICTORIA TOWN BELT
KILBIRNIE
Asset Overview
Location
This prominent site offers high visibility and convenient access to a wide array of shops, restaurants, and services. Its central position places it in high demand, reflecting the trend of businesses seeking premium space in Wellington’s thriving commercial hub. The building is well-served by public transport, with easy access to the Wellington Railway Station and surrounding transport links.
MINUTES WALKING
Lambton Quay retail
Bus stops
Numerous cafés and restaurants
Willis Lane
Wellington Waterfront
Prime CBD office buildings
Victoria University Architecture & Design Campus
Wellington Railway Station
Easy access to Wellington’s motorway network within a five minute drive.
Brandon Street
ANNEX BUILDING
HARBour city centre
179-183 LAMBTON QUAY & 29A BRANDON STREET
FRONTAL BUILDING
179-183 Lambton Quay enjoys a prime CBD location on Wellington’s prestigious Lambton Quay, within the heart of the retail ‘Golden Mile.’ “
35.9% RETAIL
62.5% OFFICE Income Breakdown 0.45% SIGNAGE 0.15% TELECOMS 0.21%
Overview
Major Tenants
FNZ is a global financial technology company providing investment platform services to major financial institutions and wealth management firms and was founded in Wellington. While now a global player managing substantial assets worldwide, FNZ maintains a significant presence in its home city and is a key player in the local financial services sector.
Contact Energy, one of New Zealand's largest electricity generators and retailers, has a nationwide footprint. Providing electricity, gas, and other energy services to residential and business customers throughout the country, Contact Energy operates various power stations and retail outlets across both the North and South Islands, solidifying their position as a major player in the New Zealand energy market.
Country Road, a popular clothing retailer known for its classic and contemporary fashion for men, women, and children, enjoys a significant retail presence across New Zealand. With stores in major cities and shopping centres internationally, Country Road is a favoured brand among New Zealand consumers seeking stylish, quality clothing.
Process Sale Method
International Expressions of Interest
179-183 Lambton Quay & 29A Brandon Street is offered for sale by way of an Expressions of Interest, closing 4.00pm (NZST) Wednesday 28th May 2025 (unless sold prior).
Inspections & Enquiring
All inspections by potential purchasers and/ or their consultants are to be arranged by prior appointment via CBRE. Please contact the Exclusive Agent to register your interest and for further details.
Electronic Data Room
To assist with the assessment of the opportunity, an Electronic Data Room (EDR) has been established to facilitate the provision of due diligence material. Access to the EDR is available at: www.cbreinvest.co.nz/harbourcitycentre
Changes to the Process
The Vendor reserves the right not to accept any offer and, without limitation, nor is the Vendor obliged to accept the offer with the highest consideration. The Vendor may, in its absolute discretion, suspend or vary the sale process, negotiate with any party who submits an EOI or with any other person, enter into a binding contract with any party at any time and/or, at any time prior to exchange of binding contracts, may withdraw the property from sale.
No person is entitled to any redress against the Vendor if the Vendor exercises such discretion. The Vendor is not responsible for any costs or expenses incurred by any party in preparing and lodging an EOI or in taking part in the above process, whether or not the party is successful or whether or not the Vendor terminates, varies or suspends the process or takes any action available to them. No offer will be deemed or regarded to be accepted, unless and until, a binding contract for sale is entered into by the Vendor with the relevant party.
Matthew St Amand Managing Director Capital Markets +64 21 280 3467 matthew.stamand@cbre.co.nz
CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)
Sales Process
Disclaimer
Disclaimer
The Vendor reserves the right not to accept any offer and, without limitation, nor is the Vendor obliged to accept the offer with the highest consideration. The Vendor may, in its absolute discretion, suspend or vary the sale process, negotiate with any party who submits an EOI or with any other person, enter into a binding contract with any party at any time and/or, at any time prior to exchange of binding contracts, may withdraw the property from sale.
No person is entitled to any redress against the Vendor if the Vendor exercises such discretion. The Vendor is not responsible for any costs or expenses incurred by any party in preparing and lodging an EOI or in taking part in the above process, whether or not the party is successful or whether or not the Vendor terminates, varies or suspends the process or takes any action available to them. No offer will be deemed or regarded to be accepted, unless and until, a binding contract for sale is entered into by the Vendor with the relevant party.
This information memorandum has been prepared by CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008) (Company Number: 916848 / REA Licence: 10019682). This document does not constitute an offer or contract of sale. It is intended only as a guide and an aid to further investigation by potential investors. Potential investors accept this document on the condition that they will make their own enquiries and obtain their own independent advice in order to verify the accuracy of the information presented in this document. The content of this document has been derived, in part, from sources other than CBRE and may be based on assumptions. In passing this information on, CBRE and the Vendor do not warrant that such information or assumptions are accurate or correct. Parties should seek their own independent verifications and advice on such information.
HARBour
To the extent that this document includes any statement as to a future matter, that statement is provided as an estimate and/ or opinion based on the information known to CBRE at the date of preparing this document January 2024 and assumptions, which may be incorrect. CBRE does not warrant that such statements are or will be accurate or correct. CBRE provides this document on the condition that subject to any statutory limitation on its ability to do so, CBRE disclaims liability under any cause of action including negligence for any loss arising from reliance upon this document. This confidential document is for the sole use of persons directly provided with it by CBRE and is not to be supplied to any other person without the prior written consent of CBRE. Use by, or reliance upon this document by any other person is not authorised by CBRE and without limitation to the above disclaimers, CBRE is not liable for any loss arising from such unauthorised use or reliance.
GST Disclaimer
CBRE (Agency) Limited advises that the financial information in this report, relating to income, outgoings and the like is provided without reference to the possible impact of GST, if any. Purchasers should make their own assessment of the impact of GST on the investments and the returns derived there from, after obtaining expert professional advice.
HARBour city centre
Confidentiality
The information contained in this document is provided on the basis that it is strictly private and confidential. The information may not be reproduced, in whole or in part, nor may any of this information be divulged or disclosed to any third party without the prior written consent in writing of the Vendor as required by law.