$64 million development planned for Wellington CBD

24 April 2019

MARKET RELEASE
$64 million development planned for Wellington CBD

Argosy is pleased to announce it is undertaking a $64 million development at its 8-14 Willis Street
property in Wellington’s CBD. The development will create a substantially new 11 Level,
11,800m2 building that will target a 6
1
Green Star Built rating and 5 Star
2
NABERSNZ energy
efficiency rating. Construction is expected to take 24 months and be completed by April 2021.

Argosy has entered into a new 15-year lease with the Crown (Statistics New Zealand) to occupy
the entire building, other than the 500m2 ground floor retail component. Argosy is in current
negotiations for a lease on this space. Like many Crown departments, Statistics New Zealand
are focused on sustainability and agile working environments. This means creating flexible,
adaptable and productive work spaces for employees. The building will be designed to attract
and retain staff, encourage creativity and collaboration to deliver a more effective public
service.

Following the successful collaboration with McKee Fehl in the redevelopment of 15 Stout Street
in 2013-14, Argosy has engaged them as the ‘design and build’ construction contractor.
Argosy’s obligations to the Crown in this project are reflected in our agreement with McKee
Fehl.

During construction the building will be strengthened to 130% of New Building Standard.
It has an independent valuation on completion of $94 million. The development is projected to
deliver an internal rate of return of 8.2% and a 7.2% initial yield.


Argosy Chief Executive Officer Peter Mence said “We are very pleased about working with
Statistics New Zealand and this development is consistent with our strategy of creating value
through the execution of Value Add opportunities. The green development will see Crown
employees benefit from a refurbished building delivering a modern, functional and appealing
workspace environment. Argosy investors will benefit from a new high quality and modern asset
in the portfolio and an increase in net tangible asset backing.”
– END –



Enquiries
Peter Mence
Chief Executive Officer
Argosy Property Limited
Telephone: 09 304 3411
Email: pmence@argosy.co.nz

Dave Fraser
Chief Financial Officer
Argosy Property Limited
Telephone: 09 304 3469
Email: dfraser@argosy.co.nz

Stephen Freundlich
Head of Investor Relations
Argosy Property Limited

Telephone: 09 304 3426
Email: sfreundlich@argosy.co.nz



1
6 Green Star Rating = World Leadership as defined by the New Zealand Green Building Council rating criteria.
2
5 Star NABERSNZ Rating = market leading performance as defined by NABERSNZ.