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Damaged Brandon Street office building sold for $10.2m

BusinessDesk report by Sophie Boot
Precinct Properties has sold Deloitte House in Wellington for $10.2 million.

The sale of Deloitte House, at 10 Brandon Street, is conditional on ground lessor approvals and is due to settle in August, Precinct said in a statement.

The building was valued at $7 million as at Dec. 31, 2017, following a number of write-downs due to earthquake damage. When it announced its first-half result in February, Precinct said it had tested the market to see if it could sell the building, but its most likely option was to strengthen the property itself.

Precinct also says it has entered into a period of exclusivity with a potential buyer for its stake in the ANZ Centre in Auckland. It has been marketing its half-share in the ANZ Centre, which was revalued at $324.3 million at the end of last year, since its balance date on Dec. 31. It said today that expressions of interest closed with strong interest expressed from multiple parties, and pricing indications were at a premium to the June 30, 2017 independent valuation of $324 million. It has agreed to a period of exclusivity for one party to complete due diligence and enter into a binding sale and purchase agreement, with no binding sale agreement at this stage.

“The half share interest in the ANZ Centre has received very strong interest and we look forward to forming a long-term relationship with the preferred bidder,” said chief executive Scott Pritchard.

“With several options for 10 Brandon Street having been assessed to date, we believe the sale of this asset represents the best option for Precinct. Progressing these asset sales will enable Precinct to focus on and recycle capital into its future development opportunities.”

They paid $56m for the building in 2007