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Massey University to put $150m in property up for sale or lease in Auckland, Wellington, Palmerston North

December 17, 2023
in Business
Massey University to put $150m in property up for sale or lease in Auckland, Wellington, Palmerston North
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Massey University's Albany campus in Auckland.

Almost all of Massey University’s Albany campus in Auckland could be for sale or rental, along with property in Wellington and Palmerston North, under a new plan to improve its finances.
Photo: Google Maps

Massey University wants to sell or lease nearly all of the Albany campus it has occupied for 30 years.

It has issued a request for proposals from real estate companies covering $150-million-worth of buildings and land at all three Massey campuses early next year.

“As part of a larger programme of work, the university is seeking to divest land as well as several properties on each of its Manawatū (Palmerston North), Albany (Auckland), and Wellington Campuses that have been deemed as surplus to requirements,” the document said.

“We invite experienced real estate brokerage/agencies to submit a proposal to represent Massey University in the sale and/or lease of surplus property, and other brokerage services as required.”

The properties included nine at the Albany campus including lecture halls and a recreation centre, four in Wellington, and nine in Manawatū including two student villages and farmland.

Some of the properties were not valued, but those that were had a combined book value of $151,213,000 not including land value.

RNZ understands the buildings included in the proposal would leave the Albany campus with only its new sciences building.

A university insider said it now appeared recently-announced redundancies that removed some subjects from the Albany campus altogether were part of a wider plan to largely exit the campus.

The tender document said the university wanted work to start in mid-February.

Last year’s annual report valued the university’s land and buildings at $1.49 billion including $183m of Crown-owned land and buildings.

The university has been struggling due to falling foreign and domestic enrolments.

Enrolments at the Albany campus dropped to nearly 3000 full-time equivalents last year, about 2000 fewer than in 2019 before the pandemic began.

Massey originally had only its Manawatū campus on the edge of Palmerston North, but opened its Albany campus in March 1993. It took over the former Wellington Polytechnic in what was officially a merger in mid-1999.

The Manawatū properties listed in the tender document included Atawhai Village and Moginie Village which had 34 buildings between them including student hostels.

In Wellington the properties included buildings on Tasman and King streets.

The Albany buildings for sale included Quads A and B, the business school, and the atrium.

Sales of the Albany student centre and recreation building were to be confirmed.

The university told RNZ in a statement the sale and lease of buildings was nothing new.

“Like others in the tertiary sector, the university is experiencing challenging financial conditions,” it said.

“The need to reduce costs and generate income to ensure financial stability remains urgent. One part of the university’s multi-year financial recovery plan is focused on ensuring we are making best use of our estates across our three campuses.

“The university has this week gone out to market with a Request for Proposal (RFP) for a realty services partner, to enable us to secure specialist experience in the active management of our estates. This may take the form of optimal land and building utilisation and sales, commercial lease agreements, marketing advice and more.”

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Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/national/504977/massey-university-to-put-150m-in-property-up-for-sale-or-lease-in-auckland-wellington-palmerston-north

Tags: businessMasseyuniversity
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