European investors have bought a prominent Wellington building for $82 million

Wednesday, 7 August 2019

The Ministry of Education building in Bowen Street Wellington with a 'stairway to heaven' has been sold for $82 million to a syndicate of European investors led by German businessman Farhad Vladi.

Prominent office building 33 Bowen Street in the heart of the Government district in Wellington has been bought by a group of European investors for $82 million from Australian owners, Vinta Group.

It is understood to be the second largest sale of an office building in Wellington this year.

The largest was the sale of the Spark building on Lambton Quay for $197.5m, announced late last year, but settled this year.

The 33 Bowen Street, 12-level office building in the heart of the Government sector is the second Wellington property sale in a few weeks for Australian owners Talavera Property, a subsidiary of Vinta Group.

It's the second sale of a prominent Wellington office building for Vinta Group who a few weeks ago also sold a 14-level building at 13-27 Manners Street in the CBD for an undisclosed amount to Wellington investor Eyal Aharoni.

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The other was the sale for an undisclosed sum of Alcatel-Lucent House, also the former Telecom headquarters, at 13-27 Manners Street. The buyer of that building is well-known Wellington property investor Eyal Aharoni.

Vladi and European investors own other significant buildings in Wellington including the Old Bank Arcade, Bowen House, the Xero building and Grant Thornton building.

Two years ago the Education Ministry's $19.4m refurbishment of the building including a $2.5m 12-floor staircase came under fire for extravagance by then Labour education spokesman Chris Hipkins, now the Minister of Education.

The sale of 33 Bowen Street was marketed and brokered by CBRE Wellington's managing director Matthew St Amand.

German businessman, Farhad Vladi, is the lead investor of the European syndicate of investors who have bought 33 Bowen Street.

A spokesman for Vladi, lawyer Brian Coburn of Hesketh Henry, confirmed a Vladi-led syndicate of wealthy European investors had bought 33 Bowen Street.

Coburn said the European investors were long term investors in Wellington and in New Zealand.

Vladi was a New Zealand resident. His core business was the sale and leasing of luxury private islands through his company Vladi Private Islands, Coburn said.

The property is next to the Reserve Bank, and across the road from the Parliament buildings. It is leased to the education ministry for 15 years. The lease started in December 2015.

The $2.5m, 12-floor staircase in 33 Bowen Street was dubbed 'stairway to heaven' by then Labour education spokesman Chris Hipkins, now the Minister of Education.

The building has 13,178 square metres of lettable area. Before the education ministry it was the headquarters of the Ministry of Business, Innovation and Employment (MBIE).

Vinta's properties in New Zealand have mostly been in Wellington. The sale of Manners St was announced a few weeks ago.

The Bowen Street building has taken more than a year to sell.

Last year in April, Vinta's other Wellington property at 110 Featherston St, an eight-level building, formerly the Dominion Farmers building, which still has its 1917 facade, was being marketed for sale also.

Vinta could not be reached for comment.