Wellington CBD investment snapped up for altruistic reasons
A Wellington property developer did not factor risk into the equation when he recently bought the former James Smiths building in the capital's CBD.
A Wellington property developer did not factor risk into the equation when he recently bought the former James Smiths building in the capital’s CBD.
The prime-retail positioned building is now in the hands of Mark Dunajtschik at a $14 million price tag, with a further $1 million needed into refurbishments.
The real reason he bought the building, he said, was to help out former owner David Blackmore who he had known for 30 years and the investment opportunity was secondary.
Earthquake risk and less demand for retail space were no deterrent for the veteran investor.
“I’ve been investing in Wellington for the last 50 years and I only invest in between the railway station and basin reserve; if I were to live another 50 years I would do it again.”
Mr Dunajtschik said the earthquake-strengthened building, which houses a variety of independent retailers, will be upgraded for the purposes that it is being currently used. The refurbishments will include exterior painting, a revamped entrance, staircase and escalator and a fit out of retail space in accordance with the specifications of the tenants.
He has hired Mr Blackmore, whose company Blackmore Trust was put into receivership last month, to manage the building.
He said he was unconcerned about whether there was enough demand for retail space for a successful investment and preferred to be proactive rather than reactive to the market.
“The position is right in the heart of the Wellington retail area and we’ll see what demand is there is when it’s upgraded.
“I produce a product first and then see what the demand is like. If you are reactive to demand you are always behind.”
Nicola Williams
Wed, 21 Sep 2011
Wed, 21 Sep 2011
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Wellington CBD investment snapped up for altruistic reasons
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