Capital citys first licensed brothel comes up for sale

The building which houses Il-Bordello, the first legal brothel to open in Wellington after the passing of the Prostitution Law Reform Bill in 2003, will be auctioned by Bayleys on August 20.

On a freehold 359sq m site at 146 Vivian Street, the modern stand-alone two level commercial building was extensively remodelled and fitted out as an upmarket gentleman’s club/brothel almost 5 years ago and benefits from a high-profile CBD fringe location.

Marketed by Grant Young of Bayleys Wellington, the property has had a significant amount of money spent on it bringing it up to the standard of a quality hotel in terms of decor and amenities.

“The lease on the property is to B and M Entertainment who in addition to running Il-Bordello, also operate the Mermaid Bar and Splash Club in Courtenay Place. They are widely recognised as leaders in the adult entertainment business in the city and have been in this industry for over a decade,” says Mr Young.

The entry to the property from Vivian Street is through double automatic glass doors which lead into a lounge area with a semi-circular central bar, extensive seating, carpeted floors and air-conditioning. Bathroom facilities are on this level along with a laundry to the back of the property. Two waiting rooms, a changing room and two bedroom suites on the ground floor can also be also accessed from a discreet back entrance via Swan Lane which runs off Marion Street.

Upstairs there are a further nine bedroom suites of varying configurations – including three with spa baths – along with toilet amenities and linen storage cupboard.

The lettable area on the ground floor is 195.4sq m and upstairs, 190.5sq m. There is vehicle access from Swan Lane with secure parking for four cars by way of a controlled automatic gate.

“The lease has just been renewed by B and M Entertainment for six years with a two by six year right of renewal in place. Rents are reviewed every three years and the property currently returns a net income of $181,944 per annum,” says Mr Young, adding that with a CV of $1,625,000, the property represents a viable passive investment with long-term potential.

“Zoning in this area allows for building up to seven storeys and there have been a number of apartment developments in the vicinity in recent years. Given the proximity to the CBD and the general location, the property definitely has options for the future.”