Sale of three student complexes in Willis Street should earn $55m

Wellington.Scoop
The NZ Herald reports that three big buildings for sale in Upper Willis Street are expected to earn their Australian owners at least $55million.

The Herald report says the properties are a unique student housing hub less than a 15-minute walk away from three of Victoria University’s four city campuses campus and Weltec’s city and new School of Hospitality campus on Cuba Street.

“Cumberland House, Education House and the McKenzies Apartments are … leased to Victoria University and the Wellington Institute of Technology for 15 years, with guaranteed rental growth,” says Bruce Whillans of Ray White Commercial which is handling the sale.

The Herald says the three student complexes are generating total net annual income of $4,322,097 and are forecast to deliver $4,330,986 over the next 12 months to January 2015 through a series of rent reviews. The rents are based on a combination of commercial tenancies and 618 student beds.

The three properties are for sale by tenders closing on April 3, with potential buyers being able to tender for individual buildings or the entire portfolio,

 

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