126 Featherston Street
126 Featherston Street, Wellington Central, Wellington
Artist’s Impression - Proposed
Introduction
As Exclusive Agents, CBRE
New Zealand is pleased to present 126 Feathertson Street, Wellington Central, Wellington for sale.
The property comprises a prominent elevenlevel commercial building constructed circa 1981, incorporating basement car parking, ground-floor retail, eight upper levels configured for office accommodation and three residential penthouse apartments each arranged over two levels. The building provides a total net lettable area of approximately 3,982sqm and is situated on a 524sqm (more or less) leasehold site which has been secured with WCC. Having recently undergone a comprehensive seismic strengthening programme, the asset is further supported by detailed design documentation prepared for a future cosmetic refurbishment, presenting a well-positioned strategic opportunity.
126 Featherston is offered for sale by Private Treaty. Offers are to be submitted on the prescribed form available via the Electronic Data Room.
A key enhancement underpinning this opportunity is the owner’s successful agreement with Wellington City Council to acquire the underlying leasehold land, with settlement set for 18 December 2026. This provides the incoming purchaser with a clear pathway to transition the asset to fee simple (freehold) ownership.
The building currently generates gross holding income of approximately $541,529 (plus GST), providing immediate cashflow while a purchaser implements a structured leasing and repositioning strategy. Upon stabilisation, the asset has the potential to generate net income to circa $1.7 million (plus GST) per annum, reflecting potential for significant uplift available through active asset management. Completion of the seismic strengthening programme presents compelling strategic optionality, including the opportunity to secure the underlying freehold interest and pursue alternative uses such as a residential conversion of the upper levels for which a comprehensive scheme has already been prepared.
Occupying a prime position in the heart of Wellington’s CBD, the property benefits from immediate proximity to essential amenities such as the Government precinct, key public transport links, Lambton Quay retail amenity, and the waterfront. This offering combines a strengthened asset with clear pathway to secure freehold tenure with substantive preparatory work already undertaken to support a potential residential conversion for short or long-term accommodation. Collectively these attributes position 126 Featherston as the most compelling strategic opportunity currently available within the central city.
This Information Memorandum introduces the property and provides most details of the opportunity. Potential purchasers should satisfy themselves with all matters that would normally be considered when making an investment of this type. Further information can be obtained through CBRE, and due diligence documentation can be downloaded via the Electronic Data Room.
CBRE strongly recommends early consideration of this outstanding CBD add-value and repositioning opportunity and invites interested parties to contact the Exclusive Agents without delay.
For further information, please contact one of the nominated brokers below.
Dharmendra Mistry
Director
Metropolitan Investments
+64 21 175 0751
dharmendra.mistry@cbre.co.nz
Rick
Stace Director
Metropolitan Investments
+64 21 338 465 rick.stace@cbre.co.nz
126 Featherston Street is a strategically positioned, strengthened CBD asset with exciting freehold pathway and conversion optionality.
126 Featherston Street
Key Information
Address 126 Featherston Street, Wellington Central, Wellington
Sales Process For Sale by Private Treaty
Electronic Data Room Comprehensive due diligence material is available at: www.cbreinvest.co.nz/126featherston (Please contact one of the nominated brokers to arrange access to the Electronic Data Room).
Property Summary Eleven-storey office tower, situated on the corner of Featherston Street and Waring Taylor Street in the heart of the Wellington CBD.
Legal Description Lot 6 Deposited Plan 10805 on Record of Title 470389
Registered Owners Castra Capital Limited
Seismic Status Recently strengthened to 80% NBS (C5 Guidelines)
Net Lettable Area 3,982sqm (approx.)
Zoning City Centre Zone
Land Area 524sqm (more or less)
Tenure Freehold secured with WCC, with settlement set down for 18 December 2026
Car Parks 12 (basement)
Passing Gross Income
Potential Net Income
$541,529 (plus GST) per annum
$1,718,448 (plus GST) per annum
Height Limit 73 metres above ground level
Investment Highlights
3,982sqm net lettable area (Approx)
80% NBS recently strengthened (C5 Guidelines)
524sqm land area (more or less)
Add-Value refurbish and reposition or convert to residential options
$1,718,448 potential net income
12 secure basement car parks
Freehold
secured with WCC, with settlement set down for 18 December 2026
$541,529
gross holding income per annum (plus GST)
3 residential apartments configued as penthouse currently
Dual frontages to both Featherston and Waring Taylor Streets
Natural light
and attractive views from the upper levels
Strata title
available for sell down
1
Value Creation
Few CBD assets offer the breadth of strategic optionality available at 126 Featherston Street. Investors are presented with several clearly defined pathways to unlock value:
Active Leasing & Refurbishment
Reposition the building through targeted refurbishment and leasing strategies to capture demand from professional services, government contractors, medical occupiers, and boutique office users seeking centrally located workspace.
2
3
Freehold Conversion Opportunity
The incoming purchaser has contractual rights to purchase the freehold title from Wellington City Council, enabling conversion from leasehold tenure to fee simple ownership and significantly strengthening the long-term investment profile of the asset.
Residential Conversion Potential
Preliminary design work has already been undertaken to assess the feasibility of converting upper office floors into residential or short-stay accommodation. The building’s efficient floor plates, natural light, and CBD location provide a strong foundation for adaptive reuse.
4
5
Strata or Hybrid Sell-Down Strategy
Preliminary design work has already been undertaken to assess the feasibility of converting upper office floors into residential or short-stay accommodation. The building’s efficient floor plates, natural light, and CBD location provide a strong foundation for adaptive reuse.
Positioned for Wellington’s CBD Evolution
Wellington’s commercial property market is undergoing a period of structural change, creating opportunity for welllocated buildings capable of adaptive reuse and repositioning.
Buildings that have completed seismic strengthening and are capable of supporting alternative uses are increasingly sought after by investors seeking to capitalise on changing demand patterns across office, residential, and hospitality sectors.
126 Featherston Street sits at the intersection of these trends - a strengthened building with strong fundamentals, positioned within one of the most established and tightly held commercial locations in the capital.
Property Description
126 Featherston Street comprises an 11-level commercial building constructed circa 1981 providing ground floor retail with eight levels of office accommodation above, plus twelve basement car parking spaces and three two-level penthouse apartments. The main entrance into the office area is via a foyer at ground floor off Waring Taylor Street. The property is held in leasehold tenure, the site containing 524sqm (more or less) situated to the corner of Featherston and Waring Taylor Streets. The ground lease is a perpetually renewable 21-year lease with the next review/renewal due in 2029.
Legal Description
The Leasehold title is referenced as follows: The Freehold title is referenced as follows:
Identifier
470389
Land Registration District Wellington
Estate Freehold secured with WCC, with settlement set down for 18 December 2026. For further details please see Electronic Data Room.
Legal Description Lot 6 Deposited Plan 10805
Land Area
524sqm (more or less)
Registered Owners Castra Capital Limited
Identifier
WN28C/710
Land Registration District Wellington
Estate
Legal Description
Land Area
Fee Simple
Lot 6 Deposited Plan 10805
524sqm (more or less)
The key points of the Ground Lease 8082519.1 in Record of Title WN28C/710 are summarised as follows:
– Lease from Wellington City Council to Castra Capital Limited
– 21-year lease term from 1 December 2008, with perpetual rights of renewal (expiry 2029)
– Rental of $197,082 per annum plus GST. The lessee is to pay any rates and other outgoings associated with the property.
– Rental is reviewed at renewal, with the new annual rental set by valuers ignoring the value of the improvements on the land. The next rent review is due December 2029.
Freehold Acquisition Opportunity
Transitioning from Leasehold to Fee Simple Ownership
One of the most compelling attributes of 126 Featherston Street is the clear pathway to owning the underlying freehold land interest, enabling the transition of the asset from leasehold tenure to full fee simple ownership. The current ownership has successfully negotiated terms with Wellington City Council to acquire the underlying land parcel, providing the incoming purchaser with a rare opportunity to convert the asset to freehold within a defined settlement timeframe. This strategic position significantly enhances the long-term investment profile of the property.
Key Benefits of Freehold Conversion
Elimination of Ground Lease Obligations
The removal of the ground lease structure eliminates future lease renewals and ground rent reviews, providing certainty of holding costs and improving long-term financial performance.
Enhanced Asset Value and Liquidity
Freehold commercial assets consistently achieve stronger investor demand, deeper capital markets interest, and superior financing conditions compared with leasehold property interests.
Improved Financing and Institutional Appeal
Many institutional and offshore investors require fee simple tenure as part of their investment mandate. Securing the freehold title expands the buyer universe and enhances the property’s future saleability.
A
Rare CBD Land Banking Opportunity – Risk and uncertainty of ground rents removed.
Leasehold tenure within Wellington’s CBD has historically limited the appeal of otherwise highquality buildings due to the existence of ground rent and uncertainty associated with future rent reviews. The ability to extinguish the ground lease and secure the freehold title fundamentally transforms the investment proposition, allowing purchasers to acquire not only a strengthened CBD building but also the underlying land holding in one of Wellington’s most tightly held commercial precincts.
Once converted to freehold ownership, the property benefits from the full rights and flexibility associated with fee simple tenure - positioning the asset as a long-term strategic landholding in the capital’s core commercial district.
Long-Term Strategic Control
Freehold ownership provides full control over the land and improvements, allowing future owners to undertake redevelopment, repositioning, or alternative use strategies without leasehold constraints.
Land Banking in Wellington CBD
With limited new development sites remaining in Wellington’s core CBD, securing the freehold interest provides investors with a rare opportunity to control a strategic landholding in one of the city’s most established commercial corridors.
Transforming the Investment Profile
The ability to convert 126 Featherston Street to freehold fundamentally shifts the asset from a traditional leasehold investment to a fully owned CBD land and building opportunity.
Combined with the building’s recent seismic strengthening and significant repositioning potential, the acquisition of the freehold interest provides purchasers with a unique opportunity to control both the improvements and the underlying land in one of Wellington’s most prominent commercial locations.
This rare alignment of immediate income, repositioning upside, and long-term freehold ownership positions 126 Featherston Street as one of the most strategically compelling opportunities currently available in the Wellington CBD.
Conversion Potential
A Strategic Capital Play
The combination of prime CBD location, seismic strengthening, income growth potential, freehold acquisition pathway, and redevelopment optionality creates a rare investment profile. For investors seeking an opportunity to reposition a Wellington CBD asset while securing long-term land ownership in the capital’s commercial core, 126 Featherston Street represents a compelling strategic acquisition opportunity.
Uses:
– WCC Residential programme
– Serviced office
– Government Tenants
– Medical suites
– Hotel
– Apartments
– Build to Rent
Potential
Floor Plan
Design Concept - Look and Feel
Site Description
The land holding comprises an L-shaped site situated principally to the south-west corner of Featherston and Waring Taylor Streets in Wellington’s CBD. There is a small triangular shaped portion right on the corner frontage which does not form part of the land holding. The total site width to Featherston Street is approximately 12.3m with total frontage to Waring Taylor Street of approximately 28m. The L-shaped leg sits in behind the adjoining property at 128 Featherston Street and has a further depth from the Waring Taylor Street frontage of approximately 14m and a width of approximately 10.7m. The total land area is 524sqm (more or less).
Location
The property is located on the western side of Featherston Street at its intersection with Waring Taylor Street, within the Wellington CBD. Lambton Quay is approximately 100m west of the property.
The immediate area is characterised by mainly high-rise office buildings, most of which also feature ground floor retail. Surrounding developments also include other retail accommodation, multiple hotels, with the ferry terminal and port to the east. Access to the Wellington Urban Motorway is provided at Murphy Street and The Terrace.
In summary, the property is considered very welllocated, in a prime location within the Wellington Central Business District, and with close proximity to transportation links.
The following map identifies the approximate location of the property.
GOVERNMENT PRECINCT
126 FEATHERSTON STREET
TRAIN STATION
WELLINGTON
WELLINGTON CBD
BLUEBRIDGE FERRIES LAMBTON QUAY
TE PAPA
MUSEUM
TE ARO
126 Featherston an exciting for a strategic and repositioning a commercial Wellington
Featherston Street is exciting opportunity strategic acquisition repositioning of commercial asset in Wellington CBD.
126 Featherston Street presents a rare opportunity to secure a strategic holding within the core CBD.
Building Description
Construction
We briefly outline construction details to the building as follows:
Structure Reinforced concrete slabs and columns, with steel beam construction
External Walls Substantially glazed façade with concrete panel feature to the splay facade at the rear
Internal Walls Predominantly plasterboard lining to lettable areas
Roof Reinforced concrete slab with a waterproof membrane
Ceiling Acoustic tiles in a suspended grid system
Lighting Recessed fluorescent and flush-mount lighting
Windows and Doors Aluminium framing and glazed windows
Key Services Ducted air-conditioning, central fire sprinkler system and alarms, two passenger lifts
Seismic Upgrade - 80% NBS (C5 Guidelines)
The seismic rating of a building is rated based on the percentage of new building standard (NBS) of the weakest structural element of the building. This in turn determines the nature and extent of any potential works required to increase the NBS level of the building.
The owner commissioned a Detailed Seismic Assessment (DSA) for the property through Quion Consultants Limited, coupled with a concept design for the strengthening of the building.
Quion completed the design for the structural upgrade to bring the building to a minimum 80% NBS, and Wellington City Council granted building consent for these works in October 2021.
In the Detailed Seismic Assessment of the building and the subsequent concept design for strengthening, the engineer determined that only the diaphragm element of the structure required upgrading, with all other existing elements achieving 80%-100% NBS (C5 Guidelines).
Resource Management
Environmental
Greater Wellington Regional Council holds a register of sites where activities involving hazardous substances have or may have taken place. This register, known as the Selected Land Use Register (SLUR), is held on behalf of the eight Territorial Authorities in the Wellington region. The SLUR records sites that fit the definitions in the Ministry for the Environment’s Hazardous Activities and Industries List (HAIL).
We have been advised by the Greater Wellington Regional Council that the property does not appear on the Greater Wellington Regional Council’s Selected Land Use Register (SLUR).
Rating Valuation The Rating Valuation of the property effective 1 September 2024 (Valuation Reference 17270/30601) is as follows:
Commercial Portion
– Land Value: $3,617,000
– Improvements Value: $7,392,000
11 16 12 18 14 15 17
– Rating Valuation: $11,009,000
Residential Portion
– Land Value: $293,000
– Improvements Value: $598,000
– Rating Valuation: $891,000
Capital Value, defined by 82(1) Rating Valuations Act 1998, is the sum that the owner’s estate or interest in the land, if unencumbered by any mortgage or other charge, might be expected to realise at the time of valuation if offered for sale on such reasonable terms and conditions as a bona fide seller might be expected to require. These assessments represent part of a mass appraisal, normally without any form of inspection and, accordingly, may vary significantly from current market values. The Rating Valuation is reviewed on a three yearly basis and is next reviewed on 1 September 2027.
Actual photos of current floor.
Images are Artist’s Impression - Proposed Interior Overview
Sales Process
For Sale by Private Treaty.
All offers are to be submitted to the Exclusive Agents on the prescribed form.
Electronic Data Room
Comprehensive property information is available within the Electronic Data Room accessible via: www.cbreinvest.co.nz/126featherston
Please contact one of the nominated brokers to arrange access to the Electronic Data Room.
The Electronic Data Room contains details of the property including, but not limited to, the following:
– Floor Plans
– Records of Title
– Registered Valuation
– Lease Documentation
– Information Memorandum
– Tenancy & OPEX Schedules
– Building Warranties & Service Contracts
– Asbestos Documentation and Technical Reports
– Pro-Forma Agreement for Sale and Purchase
Please note, new documentation may be uploaded to the Electronic Data Room throughout the campaign. Parties with approved access to the Electronic Data Room will get an automatic notification of any new uploads.
For further information, please contact one of the nominated brokers.
Dharmendra Mistry Director
Metropolitan Investments +64 21 175 0751 dharmendra.mistry@cbre.co.nz
Rick Stace Director
Metropolitan Investments +64 21 338 465
rick.stace@cbre.co.nz
Disclaimer
The information set out in this document has been prepared using information derived from a variety of external sources and is intended as a guide only and may be subject to change. CBRE does not warrant the accuracy of any of the information and does not accept legal liability or responsibility for any injury, loss or damage incurred by the use of, reliance on, or interpretation of the information contained herein.
This confidential document is for the sole use of persons directly provided with it by CBRE and it is not to be resupplied 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 are not liable for any loss arising from such unauthorised use or reliance.
126 Featherston Street
126 Featherston Street, Wellington Central, Wellington
CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)
© 2026 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.