SUPPLIEDChow Group headquarters on Courtenay Place will undergo a multimillion-dollar refurbishment.
Millionaire property tycoons the Chow brothers have scrapped plans to transform their head office into a hotel.
Michael and John Chow made the decision following the November earthquakes, which caused widespread damage throughout the country, including Wellington.
Last year, the brothers made plans to convert their commercial office on Courtenay Place into a 230-room, four-star hotel.
SUPPLIEDJohn, left, and Michael Chow aim to manage $1 billion worth of property by 2020.
However, the decision was reversed in the wake of the November earthquakes.
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“An important consideration for businesses is the safety of buildings in the event of seismic activity,” Michael Chow said.
“The structural integrity of 89 Courtenay Place was not affected by the November 2016 7.8 earthquake, meaning our existing tenants were undisturbed while much of the city came to an abrupt halt.”
The brothers have ditched the hotel plans, opting to retaining the property as office space because it made better financial sense, he said.
The Chows are not the only developers to scrap accommodation plans in the wake of the earthquake, which has left Wellington with a shortage of good quality office space.
Chris Parkin, the former owner of the Museum Hotel, had planned to convert the HP Building on Gilmer Terrace into luxury apartments.
But shortly after the quake he opted to lease the building, which is now Statistics New Zealand’s main building for at least the next two years.
On top of that, a fire in Sofitel Wellington’s restaurant forced the closure of the capital’s newest five-star hotel, only five months after it welcomed its first guests.
Management closed the hotel on December 2 and plan to reopen in mid-July.
The Chow brothers say they will now be pouring millions into refurbishing and strengthening the building.
“As part of our refurbishment plans, we are taking steps to increase our NBS [national building standard] rating from 71 per cent to 88 per cent and we anticipate high demand for these spaces, which have been offered for immediate lease,” Michael Chow said.
Work was expected to begin later this month, and should be completed by the end of June.
“We are very excited about this multimillion-dollar investment and expect the interior upgrades to make 89 Courtenay Place an attractive and sought after commercial address in Wellington,” he said.
Naming rights for the Courtenay Pl building are also available.
The Chow brothers see themselves as a major player in the property industry, with an aim of managing $1 billion worth of property by 2020.
According to the Chows, property remains the core business — making up 90 per cent of their assets.
The brothers also have interests in hotels and strip clubs.
– Stuff