Whanganui landmark with the X-factor

A landmark Whanganui property with scale and character is now on the market, giving investors, owner-occupiers and developers the opportunity to secure a substantial CBD asset supported by strong underlying fundamentals and multiple strategic pathways.

Located on a prominent corner site at 133 Wicksteed Street at the intersection with Watt Street, the former Ministry of Works building is one of the city’s most recognisable and talked-about buildings, with its Brutalist architectural design and long association with government activity putting it in the spotlight.

Within easy walking distance of the Victoria Avenue main retail strip and the wider commercial precinct, the building’s distinctive exposed concrete structure and cross-braced façade make it a striking feature of the city’s streetscape. Designed by the Ministry of Works and opened in the 1980s, the property is renowned for its stepped architectural profile and forward-thinking earthquake-resistant engineering, which has been independently assessed at more than 100 percent NBS (A+).

Known as Terrace House for its low-rise, terraced form, the building’s architectural significance has also been formally recognised, with heritage assessments highlighting its innovative late-twentieth century design and leading to classification in the Whanganui District Heritage Inventory as a Class B heritage structure.

Positioned on approximately 2,030sqm of land and providing around 3,404sqm of lettable floor area, the building has five levels of office accommodation supported by basement storage and parking for 28 vehicles, two passenger lifts, extensive open-plan workspaces and several outdoor terrace areas.

The property is currently fully leased to Te Oranganui Trust through until December 2027.

John Bartley of Bayleys is taking the property through a tender campaign closing Wednesday 28th October, and it will not be sold prior.

The property’s combination of scale, profile and flexibility singles it out as a stellar commercial asset, says Bartley.

“This is a substantial CBD building with identifiable potential for both income growth and strategic repositioning.

“The existing floor plates lend themselves to a range of leasing scenarios, including multi-tenancy occupation that could support increased returns. Equally, a corporate owner-occupier could see value in establishing a base here, and the building’s configuration also opens the door to alternative uses.

“There is also clear scope for adaptive re-use, whether hotel, serviced apartments or residential conversion, with the holding income supporting planning and consent work.”

The property’s position within an evolving CBD precinct reinforces its long-term appeal, as ongoing growth in the area continues to fuel demand for well-located commercial assets among occupiers and investors.

“A buyer with an eye to the future will recognise the value on offer, with Terrace House primed for a new direction and the options presenting solid commercial potential, including boutique hotel redevelopment, with the necessary consents, to meet rising demand for accommodation in the city.

“Whanganui boasts a strong events calendar, including the New Zealand Masters Games, with hosting alternating annually with Dunedin, and the city’s Vintage Weekend in January continuing to grow as a major regional drawcard.

“Events like these attract significant out-of-town visitation, further strengthening demand for high-quality accommodation, and a well-executed boutique hotel would reinforce Whanganui’s growing tourism and corporate travel sectors.”