St George Hotel Update

Posted on 12/08/10 in General, 2 Comments

I thought that a few of you would be interested to hear how our negotiation went on the St George Hotel Complex in Central Wellington after my post about it below.

http://stevengoodey.com/how-the-mighty-have-fallen/

The building you might remember was purchased in 2004 by an Austalian listed fund for $19,500,000.00 yes that’s right thats just short of twenty million dollars!!

My group of buyers put in an offer at $5,000,000.00 with some funky terms that made it a really good deal for us.

As it turns out it was eventually sold (after 7 offers) for $5,100,000.00 just $100k above our offer.

With the terms we had in the contract I really didn’t think we were really ever in the right ball park to succeed with our offer, but it does show you we had the number right which is good.

The buyer plans to bring the property back to it’s former glory as per the newspaper article here.

As with most things the papers make it look like this talented and creative investor has appeared out of nowhere to arrive on the scene with a large amount of money and assets, but this is as always not the full story.

As Brad Sugars says it often takes 5 to 10 years to become an overnight success.

And Mr Aharoni has had his fair share of hard yards to do in property the most public being this one.

What ever his plans for the building, I hope it is returned to being the center piece of Willis Street as it deserves to be.

2 Comments

  1. Steven

    The original Article can be found below.

    http://stevengoodey.com/how-the-mighty-have-fallen/

    Posted 12-8-2010

  2. Steven

    Another possible buyer of the St George building.

    http://www.stuff.co.nz/dominion-post/news/wellington/4425290/Sex-trade-entrepreneurs-buy-up-on-Lambton-Quay

    Posted 12-13-2010

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