15 July 2002

Hutt City Council has agreed to Centre City Plaza Limited entering into an unconditional agreement to sell the Centre City Plaza building to developers Logos Developments Limited for $6 million, which is slightly higher than the current market valuation of $5.7 million.

The sale agreement also provides that Council could share in any increases in value realised in the next three years.

Mayor John Terris thanked the directors of Centre City Plaza and said it is good to see the issues surrounding the building finally put to rest through a sale while at the same time fostering development in the city and the location of a blue chip tenant in the southern end of High Street".

"The sale is an excellent result and is an endorsement of the confidence business has in the future of our city," said Mayor Terris.

The developers are planning to build two additional floors on top of the building to house a Ministry of Social Development call centre. The call centre will bring up to 100 additional jobs into the city.

The property has been making an operating surplus of around $500,000 per year, which is paid to Hutt City Council.

"The Directors are pleased to have been able to reach a win: win arrangement for council in this sale," said Bryan Jackson, Chair of Centre City Plaza Limited.

Settlement is to occur on 19 July 2002. All proceeds from the sale will be used to retire Council debt.

ENDS

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