A large mixed-use building in Wellington is being offered to the market for sale, giving prospective purchasers the opportunity to acquire a premier asset in a busy city fringe location.
Sitting at 237 Willis Street, Te Aro, the multi-level property is fully leased and has approximately 9,334sq m of total building area. The asset sits on a 2,606sq m freehold site.
Victoria University of Wellington is the anchor tenant as the building is used for student accommodation. There are supporting tenancies in the form of a car rental company, indoor climbing centre, car parking spaces, and a cell tower, creating a diversified income stream.
The weighted average lease term is close to eight years and the estimated net annual rental income from the property, known as Cumberland House, is $2,181,745 plus GST.
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Well located on the edge of the Wellington CBD, the property benefits from a connected Te Aro position with immediate access to key commercial, retail, and entertainment attractions, supported by strong tertiary demand and ongoing inner-city growth.
Colliers Wellington Brokers Richard Findlay, Hamish Templeton, and Alistair Robertson have been exclusively appointed to market the property for sale and are taking expressions of interest closing at 4pm on Wednesday 12 August, unless sold prior.
Originally constructed in the 1970s and developed in stages, the asset has undergone a series of refurbishments and repositioning works, most notably the conversion of the upper tower from office use to student accommodation in approximately 2000.
Further refurbishment works have been undertaken periodically, including upgrades to accommodation interiors and common areas, ensuring the asset remains operationally functional for its current use.
Cumberland House is arranged across multiple interconnected components, including a two-level podium structure with ground floor and mezzanine accommodation alongside an 11-level tower that provides most of the student accommodation, and a separate rear parking building fronting Victoria Street, incorporating workshop space and a multi-level car park.
The student accommodation includes a mix of single rooms, studios, and twin share units with a total of 187 rooms and 227 beds.
This configuration provides a highly flexible asset with multiple income streams and distinct tenancy zones across the site.
Findlay, Managing Director at Colliers Wellington, says the dual-access configuration of the building enhances operational flexibility and provides strategic optionality for future reconfiguration or redevelopment.
"Cumberland House represents a substantial, multi-level CBD fringe asset with a diverse physical configuration that supports its current income profile while also providing flexibility for future repositioning," Findlay says.
"Its combination of scale, dual frontage, and established improvements underpins both its immediate income-producing capability and longer-term development potential."
Templeton, Investment Sales Broker at Colliers Wellington, says the strength of the tenant covenant will be highly appealing for investors while most of the lease agreements include rental growth mechanisms.
"Victoria University of Wellington is a well-established educational institution that supports a substantial student population as well as a large academic and professional workforce," Templeton says.
"The organisation has a long-term lease in place and Cumberland House is a prime site in their wider accommodation network across Wellington. Its central location and proximity to key university facilities make it a desirable option for students."
The property is positioned on the eastern side of Willis Street within the established Te Aro precinct, on the southern fringe of the Wellington CBD.
Robertson, Investment Sales Broker at Colliers Wellington, says the surrounding area is characterised by a mix of commercial buildings, student accommodation, and an increasing number of residential developments.
"Willis Street is a key arterial route that runs through central Wellington and provides strong connectivity and accessibility with public transport and pedestrian links readily available," Robertson says.
"The property sits near multiple tertiary education facilities, underpinning the ongoing need for student accommodation, while Wellington's renowned hospitality and shopping spots are easily reached, making this an appealing investment opportunity with long-term upside."
- Supplied by Colliers
