CIVIC CENTRE LEASES.

New Zealand Herald, Volume LXIV, Issue 19827, 23 December 1927, Page 10

CIVIC CENTRE LEASES.

VALUABLE SECTION SOLD. CORNER OF QUEEN STREET. UPSET RENT OF £1920 A YEAR. LARGE BUILDING PLANNED. Faith in the business future of Upper Queen Street is indicated by the sale of the lease of the most valuable of the civic centre leases. The auction seven weeks ago was abortive, but yesterday negotiations were completed for the disposal of the section at the corner of Queen Street and Wellesley Street West. Early in the new year the work of erecting a fine, five-storeyed building will be commenced, and other negotiations in progress give colour to the hope that the whole <*f the area will be built upon.

The sum of £1920 a year has been agreed upon as the ground rent /or the section the lease of which was sold yesterday. The purchasers are an Auckland business syndicate, known as Civic Properties, Limited, and the price named equals the upset fixed by the City Council prior to the recent auction. The section, which is 18.2 perches in area, has frontages of 52ft. 6in. to Queen Street and 70ft. to Wellesley Street. It is cut off at a slight angle at the corner. The conditions framed by the City Council have been agreed to in their entirety. These stipulate that the lease will be for a period of 66 years from January 1 next, the rent for the first 22 years being the price named, and for the two successive periods of 22 years each a price fixed at the rate of 5 per cent, per annum upon the actual then value of the land only, to be ascertained by valuation at the commencement of each period. The building to be erected will also conform to stipulations. An important condition is that the building shall be carried to a height of 55ft. within th« first three years, and to 102 ft., the city limit, before the end of the eleventh year. It is the City Council's desire to make all buildings in the block conform to a uniform scheme, and the structure to be erected will, it is claimed, be a worthy corner-stone for the. area bounded by Queen, Wellesley, Fergusson and Myers Streets. It is stated that at least £25,000 will be involved in carrying the building to its preliminary height of five storeys. The sale was negotiated by Mr. H, G. Palethorpe, auctioneer for Messrsi. > Samuel Vaile and Sons, Limited, who conducted the recent auction of the leases.