Investec snaps up Majestic
Wellington’s tallest building, the Majestic Centre, has been sold to a subsidiary of a major South African investment bank for more than $123 million.
Kiwi Property Group, the largest property company listed on the NZX, has struck a deal with Investec Australia Property Fund, which is owned by Investec.
Investec is a significant investment bank and asset manager, and has long been the sponsor of Super Rugby.
The tower is believed to be the company’s first investment in New Zealand’s commercial property market. The deal, brokered by Matthew St Amand and Bill Leckie of CBRE, is the biggest single office property sale in Wellington in the past 10 years.
As part of the $123.2m sale arrangement, Kiwi Property has been appointed manager of the building, which has been the subject of one of the country’s largest seismic upgrade projects.
Kiwi Property chief executive Chris Gudgeon said proceeds from the sale, which was due to settle next month, would be used to pay down debt, providing further flexibility for the company to invest in line with its strategy.
St Amand said interest had been very strong, because of the extensive seismic upgrade.
Built in 1991, the 29-storey building has recently completed an $85m earthquake strengthening project, having been deemed to be of moderate risk in assessments in the wake of the Christchurch earthquake.