A strategically located commercial building in the centre of Wellington is available for purchase, giving buyers the opportunity to acquire a seismically strengthened asset that offers holding income and significant long-term upside.
8 Gilmer Terrace has 14 total floors with approximately 9,947sq m of net lettable building area.
The asset sits on a freehold site spanning 1,763sq m.
The property has a long history of being occupied by government tenants with previous occupiers including Stats NZ and the Ministry of Education.
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Currently, the Ministry of Justice remains in place across three of the floors, providing a rental stream for the new owner for the next two-and-a-half years.
This tenancy is complemented by income from Wilson Parking.
The building, designed by renowned architects Warren and Mahoney, has 33 predominantly covered on-site car parks and sits in a short cul-de-sac between Boulcott Street and Lambton Quay.
The property’s location means it provides excellent connectivity to public transport options and motorway on-ramps.
Colliers Wellington Brokers Alistair Robertson, Hamish Templeton, and Richard Findlay have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Tuesday 7 July, unless sold prior.
Originally constructed in the 1980s, the property underwent seismic strengthening work in 2016 and has a 100 per cent NBS rating (C5 Yellow section), which is sought-after among investors.
The building is designed in an octagonal tower form with a central services core, allowing for efficient circulation and flexible, predominantly open-plan office accommodation on each level.
Typical floorplates are approximately 760sq m and benefit from excellent natural light across all elevations, with upper levels enjoying expansive harbour views.
When fully tenanted, a market estimate suggests the property could return approximately $3,098,895 in net annual rental income.
Robertson, Investment Sales Broker at Colliers Wellington, says prospective purchasers have a range of options to explore given how the asset could be utilised in the future.
“The existing layout of the building means it could be attractive for office occupiers seeking space in a prime central location that will give their staff outstanding access to transport options and surrounding amenities,” Robertson says.
“One opportunity to examine is potentially reconfiguring the floorplates to enhance efficiency and increase the lettable area for future office tenants.
“There is also considerable scope to convert the building into student accommodation or apartments that would meet an ongoing need in the capital.
"There could also be a mixed-use angle to consider, and any future developments could be completed in stages, while leasing parts of the property.”
Templeton, Investment Sales Broker at Colliers Wellington, says the property’s central location is a key selling point.
“Lambton Quay’s high-quality mixture of shops and hospitality options are a short walk away, while the area is well-known for its collection of corporate occupiers that have a presence in the vicinity,” Templeton says.
“The subject property is also conveniently positioned between Victoria University’s Kelburn and Pipitea campuses, underscoring the asset’s potential as a future student accommodation hub.
“The surrounding established accommodation precinct further supports the strong demand for short-stay options for travellers to Wellington.”
Findlay, Managing Director at Colliers Wellington, says this building sits in a core commercial hub of the city that provides access to key arterial routes and transport connections.
“With the comprehensive strengthening works completed on the building, the new owner can focus on value-add initiatives or potential change of use options that will unlock its true value,” Findlay says.
“There is clear long-term upside attached to this property.”
- Supplied by Colliers
