Wellington developer buys IRD building in Hamilton's CBD

Sunday, 29 April 2018

The IRD Building has been bought by a major Wellington developer.

A top Wellington property developer has purchased the Inland Revenue building in central Hamilton.

The Bryce St building was bought by The Wellington Co. Managing director Ian Cassels who said he was keen to be a part of Hamilton's revitalisation.

Managing director of The Wellington Company Ian Cassels says a decision on what to do with the building will be made in three months.

'It's the Tron. It's the place to be and it's happening for a lot of people,' he said. 'It's a good city. We're very pleased with it.'

However, what the building will be used for remains undecided.

* Another Wellington office block to be redeveloped into student hostel

* Inland Revenue outlines jobs changes to staff**

He said the city is in a development phase similar to what Wellington went through in the 1990s.

'It has a beautiful river and a bit of attitude … It has got some great restaurants and plenty of art around the edges. It just needs to work its way through the next years and it will be fine.'

Cassels said student accommodation is a possibility for the building, but a decision won't be made for three months.

In February, Cassels bought a multistorey office block in central Wellington to convert it into student accommodation.

'While we have done a lot of that [converting city buildings into student accommodation] in Wellington, there's no preferred option [for the Hamilton building] at the moment.

'It could be office, it could be residential, a hotel, it could be the whole range of things, really. It's really depending upon what works best on the day and closer to the time when it becomes empty.'

Two tertiary providers in Hamilton said they had not been approached about or had any discussions with The Wellington Co.

Waikato University Vice-Chancellor Neil Quigley said the university has a 'medium-term interest' in establishing student accommodation in central Hamilton.

The university currently provides halls of residence on the Hillcrest campus, including Bryant Hall, College Hall, Student Village and Orchard Park.

Wintec was aware the building had been purchased by a developer who has experience in converting buildings into student accommodation, but also had not heard anything from The Wellington Co.

Wintec executive director of infrastructure and assets Graeme Ward said the polytech was always interested in opportunities for its students. He said there is a demand for good-quality accommodation.

'We're considering our own plans and we support bringing more residential accommodation, including students, into the city, as it contributes to a vibrant and diverse community.'

Part of the building is currently leased to the IRD. In mid-2014, Inland Revenue announced its 900 staff needed new accommodation, sparking a battle between the central city and Te Rapa property owners.

Some IRD staff have since moved into a Garnett Avenue building in Te Rapa, with about 500 still in Bryce St.

In June 2016, IRD announced it had reached an agreement with development company Hamilton Homezone for a nine-year lease in a new development to be built on Home Straight, Te Rapa.

An IRD spokesman said plans were on track to relocate from Bryce Street to the new premise in October 2018.