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Buyers to get quirky tenants

23 August 2014. Source: Fairfax NZ News
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Three floors in one of Wellington's newest buildings are up for sale with an asking price of more than $20 million.

One Market Lane developer Willis Bond is selling the office floors in the building, which are leased to Trade Me.

The internet-based auction house moved into the new purpose-built premises in June.

It has a nine-year lease on 3100 square metres of space on the third, fourth and fifth levels of the 12-level development.

Quirky elements include three slides - one of which drops from the fifth to the third floor - a caravan, picnic rooms, arcade games, a pool table, a karaoke stage and assorted bits of kiwiana to entertain and amuse the company's 269 Wellington staff.

Willis Bond director David McGuinness said Trade Me had the usual rights of renewal beyond its initial nine-year lease.

Its lease also included eight of the building's 69 car parks.

He said the Trade Me office floors were a superb blend of innovative design and functionality.

McGuinness was not prepared to disclose the annual rental return on the Trade Me floor, saying this figure was confidential. He was also unwilling to indicate the yield assumption that was used to assess what it could sell for.

The sale is being managed by Bill Leckie of Colliers International and Ryan Johnson of CBRE.

One Market Lane is a $50 million office and residential development on the site of the former Rialto Cinema and Wellington markets building on the block bounded by Jervois Quay, Cable and Taranaki streets.

Tenants in the adjoining old John Chambers building, which was redeveloped by Willis Bond, include Xero and Morrison & Co.

McGuinness said that when it was finished One Market Lane would have a cafe and office space on the ground floor, two levels of car parks, the three Trade Me office floors and 44 apartments on levels 6 to 11.

Work on the building is expected to be completed in the next few months.

Structural work had been finished, work on the facade was nearly done and all that remained was fit-out of the apartments, which should be ready for occupation at the end of January.

Thirty-six of the apartments were sold off the plans, with the cheapest going for $650,000.

The eight remaining apartments range in price from $795,000 to $3m for one of the building's five penthouse residences.

Willis Bond also developed the Clyde Quay Wharf apartments on what used to be the Overseas Passenger Terminal.

The company is set to start next year on a new $80m Wellington campus for Whitireia and WelTec polytechnics. The centre for creative technology and arts will be built on the old Deka site on the corner of Cuba and Dixon streets.

Willis Bond has also been selected by Wellington City Council for a proposed new Kumutoto office block on the waterfront and also has an option to develop public space on a neighbouring site.