Philanthropist sells first building
Wellington property developer Mark Dunajtschik has sold the first Wellington building he bought so he can focus on the new $50 million children’s hospital he is bankrolling and building.
The philanthropist bought Polo House on the corner of Chaffers and Wakefield streets in 1987 from Sir Robert Jones.
The building, which has been vacant since the Kaiko¯ ura earthquake in November 2016, was sold to Wellington property investor Vlad Barbalich for $4.5m.
Dunajtschik said he sold the building because strengthening works and the conversion of the remaining offices into apartments was too time consuming.
‘‘I’m just a little bit overworked and too involved with the children’s hospital, and I can’t do justice to both. And the children’s hospital is 10 times the value of Polo House,’’ he said.
When Dunajtschik bought Polo House, he added another two office floors. However, in 2003 he converted them into apartments.
The ground floor is home to retail stores and the seven floors above are a mix of offices and apartments.
Following the quake, tenants were given notice by Dunajtschik to leave so he could strengthen the building to 100 per cent of the new building standards code.
In his note to tenants, he wrote there had been ‘‘relentless’’ inquiries for an engineer’s report.
‘‘Obviously my efforts to remedy the water damage and endeavouring to engage the services of a structural engineer in less than 24 hours after the quake, was unsatisfactory to most of the occupants of Polo House who kept on texting, emailing and phoning: ‘When will the building be declared to be safe by an expert?’’’
He wrote that his verbal reassurances had not been accepted, and due to pressure by ‘‘a number of unreasonable tenants’’ he would strengthen the building, and they would have to make ‘‘alternative arrangements.’’
Wellington’s Century 21 First Choice Realty owner Joe Lupi said the sale price reflected the fact that the building required strengthening.
‘‘[Dunajtschik’s] desire was to see a renovation of the building, together with Vlad’s significant expertise in this area, made it a good match,’’ Lupi said.
The German-born philanthropist, who is in his 80s, came to New Zealand as a toolmaker in the 1950s and ran a successful engineering business for 28 years before ‘‘retiring’’ to the world of property.
In July last year, Dunajtschik announced he would pay for, build and gift a $50m children’s hospital to the Capital & Coast District Health Board.