Property redevelopment specialist Argosy announces a world-leading green building for Wellington

Thursday, 25 April 2019

Property company Argosy has announced the $64 million 'green' redevelopment of a building at 8-14 Willis Street, central Wellington, next to the Stewart Dawsons building (pictured), which it also owns and is earthquake strengthening.

Property specialist Argosy has announced a $64 million world-leading 'green' redevelopment of a central Wellington building, to be the new home for Statistics New Zealand.

The government agency's relatively new building on Wellington's waterfront partially collapsed during the Kaikoura earthquake in November 2016 and has been demolished. The damaged building's colour, ironically, was green.

The new 11-level, 11,800 square metre building at 8 -14 Willis Street will form an L shape around its neighbour, the Stewart Dawsons building, also owned by Argosy, which is being earthquake-strengthened at present.

An illustration of the 11-level, 11,800 sqm building to be developed at 8-14 Willis Street, Wellington, by Argosy.

Argosy chief executive Peter Mence said the Willis Street building would be substantially new. The concrete structure of the building would be retained.

* Expert panel told Wellington's Statistics House not built to design

Statistics House was demolished at the end of 2017.

* Statistics New Zealand staff have two semi-permanent offices: Westpac House and HP Tower**

The company, specialising in redeveloping buildings, would target a world-leading 6 Green Star rating and a 5 star energy efficiency rating for the building.

Green Star is an internationally recognised rating system for the design, construction and operation of buildings. A 6 Green Star is world leading.

Argosy chief executive Peter Mence said the company had worked with Statistics New Zealand to design and deliver a modern, functional and appealing workspace.

The rating tools award points across nine categories including energy, water, types of materials, the indoor environment quality, transport, land use, management, emissions, and innovation.

Argosy, listed on the New Zealand sharemarket, has 61 industrial, office and retail properties worth $1.62 billion.

Mence said the building was empty and the two-year construction was starting, with completion scheduled for April 2021.

'The development of the existing building comes out towards the street, goes up beyond the existing building and then goes out over the top of the back of the Stewart Dawson corner development so it ends up with an L-shape floor plate.'

'Argosy has entered into a new 15-year lease with the Crown (Statistics New Zealand) to occupy the entire building, other than the 500sqm ground floor retail component. Argosy is in current negotiations for a lease on this space.'

Mence said Argosy had engaged McKee Fehl as its design and build construction contractor after successful collaboration with the company in the redevelopment of 15 Stout Street, central Wellington, in 2013-14.

The building would be strengthened to 130 per cent of the New Building Standard (NBS). An independent valuation said the building would be worth $94m on completion.

'Our development is very much working with the tenant to come up with the right answer rather than just building a box and sticking them into it.'

The company had worked with Statistics New Zealand to design and deliver a modern, functional and appealing workspace, Mence said.

'Argosy investors will benefit from a new high quality and modern asset in the portfolio and an increase in net tangible asset backing.'