New Plymouth Shell Todd HQ for sale to offers above $10 million

Friday, 22 April 2016

One of New Plymouth's landmarks is up for sale - and although you'll need extremely deep pockets to buy it you can expect a tidy rental income of more than $900,000 a year.

The Shell Todd building, at 167 Devon Street West, has been put on the market by a Singapore investment firm after 15 years and is expected to sell for more than $10 million.

However, although the site's ownership is to change hands, the petrol and gas company is expected to be staying put for years to come.

Prospective buyers have until May 12 to submit their bids for the site, a three-storey office building and eight-storey office tower, which has been home to the company since the 1970s.

Shell Todd Oil Services (STOS), which has 300 staff, is involved in petroleum exploration, development and production as well as natural gas.

The company is is jointly owned by Shell Petroleum Mining and Todd Petroleum Mining. Shell is currently reviewing its New Zealand interests, with the possibility of selling them.

But STOS, which provides 85 per cent of the nation's gas supply, has signed a lease to remain until July 2023, with two further five-year rights of renewal. 

Alan Johnston, of Bayleys New Plymouth office, said: 'Shell Todd is a big contributor to the Taranaki economy, with many of its 300 staff based here and it also provides employment for a wide range of contractors.

'It has made a long-term commitment to the area and this property, and the projections are that its various fields will continue to produce for at least the next 15 to 20 years.'

Tony Chaudhary, of Bayleys Real Estate, which is marketing the site, said interest had been picking up, with 'solid enquiries' from Australia and around the north island.

Investors looking for alternatives to the heated Auckland property market have also been making approaches.

Although the original site was built for Shell Todd it has always been occupied on a lease.

Bayleys' spokesman Neil Prentiss said it was rare for large properties to be owned by the client, with most big firms preferring to lease their buildings.

'It basically gives them a bit more flexibility,' he said.

The tower has been encased in scaffolding for the past few weeks as part of repainting and refurbishment work.

The new owner of the site could be announced before the end of May.

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