Argus says joint venture plans off

Press, 17 March 1987, Page 41

Argus says joint venture plans off

PA Wellington Argus Corp, Ltd, has announced that the development of the Grand Hotel site in Auckland and the Majestic Theatre site in Wellington will not proceed as a joint venture with Rainbow Properties, Ltd.

While the developments shared many factors in common and it was previously envisaged that the joint venture company would both develop and retain ownership of these projects, there had been significant changes in market conditions during the planning process, Argus Corp’s property director, Mr Nigel Powell, said in a statement.

A number of approaches to acquire the completed Grand Hotel site development have been received from institutional investors, but because of the strong interest Argus Corp will defer a final decision on ownership to maximise the profit potential of the development, Mr Powell said.

Strong tenant interest is being displayed and Argus anticipates concluding an agreement for a head lease over the whole development.

Mr Powell also said the final design for the redevelopment of the Grand Hotel site in Auckland had been completed and that a Town Planning Ap-

plication has been lodged for a 15 level building which will have a floor area of 16,343 square metres (170,000 square feet).

The design incorporates modern technology while protecting the historic facades of The Grand Hotel and Freemasons Hall. Other features are the

entrance opening into a three storey atrium which forms the lobby, the 24 hour pedestrian walkway from Princes Street through to Bankside Street with a large elevated patio area, and the historic cottage at No.l Bankside Street which is being renovated for use as a creche.