PHOTO: Victoria University of Wellington. SUPPLIED
Victoria University is divesting millions of dollars’ worth of real estate assets in a bid to offset its financial losses. The university has initiated a call for proposals (RFP) to engage real estate services for the sale of 24 properties.
Most of these properties are situated on one side of a street within Wellington‘s Aro Valley. They comprise 11 student flats and eight sections, spanning from 24 Adams Terrace to 58 Adams Terrace. The RFP specified that three of the flats were unoccupied due to land movements, while the remaining units were currently housing 40 students.
In addition to the student flats, the RFP encompasses other properties, including two office spaces at 73 and 75 Fairlie Terrace, another at 15 Mount Street, an unoccupied student flat at 3 Waiteata Road, and a section at 49 Rawhiti Terrace. According to QV information, the collective market value of these properties exceeds $16 million.
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Victoria University disclosed to RNZ that the proceeds from this real estate divestment will contribute to reducing its $33 million deficit. Although there is a strong demand for affordable student housing in Wellington, the university asserted that the flats being sold are no longer suitable for modern student requirements. It stated, “Current student demand leans toward purpose-built, mid-rise facilities, and these particular student accommodation properties are among our older housing stock, necessitating extensive and ongoing maintenance.”
The university clarified that the properties mentioned in the RFP are the sole assets being offered for sale.