Shhh, these walls have ears

Do the walls have ears? If they do, then Defence Headquarters on Wellington's Stout St has heard a few secrets in its time.

The future of the building is yet to be decided as owner and Wellington-based landlord Capital Properties considers two options for its future: renovate or sell.

The plans to shift the Defence Force and Security Intelligence Service staff into new Capital-developed headquarters by 2007 have left Capital Properties chief Chris Gudgeon with the option of either refurbishing and upgrading the building's interior or selling it as a hotel or apartment block.

"Quite a few people are keen," Gudgeon said last week. "We've already had expressions of interest from a number of developers."

If the building is retenanted as an office block, it will need a major interior makeover, so Capital has engaged Wellington architect Ian Athfield to prepare a concept design that retains the building's historic features.

Gudgeon has his chequebook ready for the deal. "It would be a multi-million-dollar refurbishment job," he said.

New carpet, upgraded toilet and bathroom areas, better lighting, upgraded airconditioning and partitioning are all on the drawing board.

Although the building has good lift speed and capacity, these services would also be reviewed.

Gudgeon's preference is to lease the building to a Government tenant, but he is not ruling out businesses.

"The building is in a prime location, just three minutes' walk from the Beehive, railway station and main bus interchange," he said.

Government tenants are also looking to consolidate into one large structure such as Defence House. "There is a drive among large Government sector tenants to secure better organisational efficiencies by consolidating their office space into, ideally, one building," Gudgeon said.

The 1930s eight-level building was one of the first with welded steel column and beam structures. Its art deco facade has Historic Places Trust classification and it is listed on Wellington City Council's heritage register.

It has a 17,100sq m total rentable area and large, 2000sq m floorplates.

Capital has done many leasing deals in the past year. They include:

* The Ministry of Transport has leased 3575sq m of Novell House on The Terrace in Wellington for a 12-year term, starting next March. The ministry needs larger premises because of a reorganisation in the transport sector in the past year.

* The Ministry of Social Development has taken a new three-year lease for 4925sq m of the Charles Fergusson Tower Building in Wellington. The lease starts this month and incorporates renewal of an existing lease.

* The new 18,300sq m defence headquarters being built in Thorndon have been leased to the Government for 18 years.

* The Ministry of Health renewed its lease on the William Clayton Building in Wellington for another six years.

* The State Services Commission renewed its lease of 6698sq m for six years.

* Ministry of Justice took a six-year lease on 2312sq m of the Vogel Building.

* Kensington Swan took a nine-year lease on 2311sq m in Novell House.

* Meredith Connell took a new 12-year lease on 2245sq m in Forsyth Barr Tower.

* Symantec New Zealand reviewed its lease on 1928sq m in the University of Otago House for five years.

* Pronto Print renewed its lease of 1199sq m in the Vogel Building for three years.

Available soon

Where: 15-21 Stout St, off Lambton Quay in Wellington.

What: Defence Headquarters - soon to be vacated.

Why: Capital Properties is developing a new building in Thorndon.

When: The 1930s building will be cleared out in 2007.