Majestic Centre finishes $83 million strengthening project

Wednesday, 8 March 2017

The Majestic Centre construction took 4.5 years, and cost $83.5 million.

Earthquake strengthening work on Wellington's tallest building, the Majestic Centre has been completed at a cost of $83.5 million.

The building is owned by listed property company Kiwi Property Group.

The project was first expected to cost $35 million.

Kiwi Property chief executive Chris Gudgeon said: 'This has been one of the most complex seismic strengthening programmes ever undertaken in New Zealand, with our programme of works undertaken in stages over a 4.5-year period to keep the building operational throughout.'

Contracting company Fletcher Building poured 1300 cubic metres of concrete, installed 1325 tonnes of structural steele, and inserted 53,500 bolts and anchors.

The construction crews poured 1300 cubic metres of concrete for the earthquake strengthening construction.

Karl Millanta drops in on office workers while sealing the joints between the glass panes on the Majestic Centre. In the basket beside him is apprentice TJ Hough.

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The construction workers also laid 53.2 kilometres of post-tensioning strand, which are steel tendons that are tightened after the concrete is poured and strengthens it.

During the peak construction period, construction crews worked in two shifts 21 hours a day, seven days a week.

All but a small part of the Majestic Centre now meets 100 per cent of the new building standard.

Gudgeon said the remaining 3 per cent is two small tenancies outside the tower, that are rated 40 per cent of the building code and may be strengthened in the future.

A property assessment after the Canterbury earthquakes in 2011 found the Majestic Centre was between 34 per cent and 66 per cent of the new building code.

The project was initially expected to cost $35m and bring the building up to 70 per cent of code when it began in 2012. A year later Kiwi Property decided to increase the strengthening to 100 per cent. The budget was increased to $83.5m in 2014.

An array of GeoNet sensors previously installed in the building recorded the 2013 Seddon earthquakes and gave confidence to engineers about the design assumptions for the upgrade.

The Earthquake Commission, Summerset Group Holdings and GM Commercial all renewed their leases with Kiwi Property during construction.

The Majestic Centre when it was under construction in 1989.

Other tenants include Cigna Life Insurance New Zealand, New Zealand Transport Authority, EY, the Japanese Embassy, Taipei Economic and Cultural Office, building and engineering consultancy Opus International, New Zealand Trade and Enterprise, and Airways New Zealand.

Since work began Kiwi Property has leased 93 per cent of the renovated office space, with an average term of almost seven years, Gudgeon said.

Gudgeon said a the company has seen a surge in tenant demand for buildings with high seismic ratings since the Canterbury earthquakes and the Kaikoura earthquake.

Property company NPT and Kiwi Property are in talks over NPT's acquisition of the Majestic Centre as well as the Kiwi Property's North City shopping mall in Porirua for $230m.

In return Kiwi Property would take over NPT's property management portfolio and own 19.9 per cent of NPT.

NPT shareholders will vote on the proposed deal at a special meeting in April.

A rival proposal has been offered by property fund manager Augusta Capital, which owns 10 per cent of NPT and take over the property management portfolio, worth $500m.