Archive | Neighbourhoods

Remuera shop leased, provincial sales

A Remuera shop has been leased, and warehouses in Christchurch & Napier sold by Colliers agents.


South Island


163 Wordsworth St, unit 2:
Features: 238m² refurbished warehouse
Outcome: sold at auction for $400,000
Agents: Christian Kellar & Oliver Salt

South of the Bombays

Hawke’s Bay


78 Taradale Rd & 32 Severn St:
Features: 6886m² warehouse/showroom & partly leased 3982m² industrial site
Outcome: sold as trade deals, Taradale Rd for $3 million, Severn St for $686,000
Agent: Danny Blair


Isthmus east


360 Remuera Rd:
Features: 274.1m² shop, leased to Bed Bath N Table
Agent: Nilesh Patel

South of the Bombays



8 Te Puni St:
Features: 1604m² office, leased by Cook Strait Properties Ltd to Mavero Ltd (Flip Out franchise) for a 6-year term
Rent: $250,000/year + gst
Agent: Ben Taylor

Attribution: Agency release.

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East Tamaki property sold as Steel & Tube rings in changes

The exit door has been swinging at Steel & Tube Holdings Ltd, and the departures now include property.

Interim chief executive Mark Malpass said in September the board had determined to test the property market, putting its East Tamaki distribution centre up for sale, and on Friday he said the company had accepted an unconditional offer.

“At the heart of any change is recognition that we are a company that provides steel solutions, not a commercial property company. A sale & leaseback would release capital, improving the efficiency of our balance sheet, while still reflecting the importance of the property through favourable lease terms,” Mr Malpass said in September.

On Friday he said the company had signed an unconditional agreement to sell its 68 Stonedon Drive property for $32.577 million on a sale & leaseback basis. The transaction will be completed on 20 December.

That followed a statement from new chair Susan Paterson at the annual meeting on Thursday, that the company believed it could use funds from the sale to generate a better return for shareholders: “Steel & Tube intends to apply the sale proceeds to repay debt and strengthen its balance sheet. This positions the company well for future growth.”

Mr Malpass said the sale didn’t change the earnings guidance the company gave on Thursday – half-year earnings before interest & tax (ebit)) down $9-10 million, but restored in the second for full-year ebit “materially the same” as for the year just gone, which was $31.1 million.

In the first half of the 2018 financial year the company has seen margin pressures from higher steel purchase prices, which the market took some time to pass on to customers. The company has increased selling prices across its portfolio of steel products from mid- November and expects margins to improve in the second half of the financial year.

Mr Malpass said recent changes to the senior executive team were also bringing a fresh focus and, together with the board, he was targeting a turnaround of poorly performing business units and efficiency gains through a change programme.

Ms Paterson told the annual meeting: “Our strategy is to maximise value for our shareholders by creating a sustainable, long-term, successful business. The capital investment made into acquisitions & the business in the past 5 years has created a strong platform for Steel & Tube. However, we are very aware that the company has been too slow to realise the significant benefits & value from these.

“Management & the board are focused on resetting the performance of the business and delivering a sustainable improvement in financial performance, and we expect Steel & Tube to be a significantly stronger business in 12-24 months.”

The board has identified 2 key goals – to provide superior value to customers and to simplify the business. Among guidance points:

  • Half-year ebit is expected to be impacted by working capital review, reorganisation & restructuring activities, increased depreciation costs for a new ERP (enterprise resource planning) system and the slow response by the industry to margin pressures arising from increased costs of supply. Steel & Tube announced price changes to take effect from mid-November in response to market cost pressures
  • The recent implementation of the new ERP system is a key enabler now available to the business and has helped assist management with a review of slow-moving inventory
  • About half the expected decrease in half-year ebit is due to an anticipated writedown of inventory
  • Excluding the one-off inventory valuation adjustment included in the half-year earnings guidance, full year EBIT for the 2018 financial year is expected to be materially the same as the 2017 financial year EBIT of $31.1 million, as the impacts from recent price changes and the benefits of change actions are realised.

The change programme, to enable the company to maximise the value of investments made over the last 5 years, includes:

  • The realignment & simplification of Steel & Tube businesses into 2 streams (distribution & infrastructure), including the integration of acquired businesses
  • Delivering sustainable earnings growth and leveraging the value from the recent capital expenditure programme, including the new ERP system
  • Strengthening the company’s capital structure, including optimising the supply chain and review of the company’s property portfolio
  • Reviewing working capital with a focus on surplus slow-moving inventory items; and
  • A continuing focus on quality, health & safety and the environment.

 Attribution: Company releases, annual meeting speechnotes.

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One condition left on Central Park sale, and Air NZ extends at Fanshawe St

Goodman Property Trust manager Goodman (NZ) Ltd said yesterday its sale of Central Park at Greenlane had all but gone unconditional, with only Overseas Investment Office approval still required.

The trust has also secured a new long-term lease commitment from Air NZ on its Fanshawe St headquarters.

Goodman (NZ) chief executive John Dakin said yesterday the $209 million Central Park sale to a joint venture led by New Zealand property fund manager Oyster Property Group Ltd represented a significant milestone in the repositioning of the Goodman trust, marking the last of its major identified asset sales.

“Following settlement of the property, the trust’s portfolio will be almost 90% invested in its preferred Auckland industrial sector and will have a value of $2.4 billion.

“With over $850 million of asset sales since 2012, we have positively rebalanced the trust’s portfolio, improving the quality & growth profile of the assets. It’s a disciplined strategy that is focused on the delivery of the industrial development pipeline and building a portfolio of unrivalled quality.”

Air NZ’s headquarters at 185 Fanshawe St.

The VXV precinct

The Goodman trust’s office investment is now focused in the VXV precinct of the Auckland waterfront Wynyard Quarter. The trust jointly owns the portfolio of 7 buildings with GIC Pte Ltd, the sovereign wealth fund of Singapore. The portfolio has a value of $488.4 million and Goodman’s proportionate share is $249.1 million.

Air NZ’s head office at 185 Fanshawe St is in that precinct. Trans Tasman Properties Ltd began development of the 6-level building in 2005, putting a $60 million value on it, but sold the development part-built to what was then the Macquarie Goodman Property Trust, with Air NZ as the incoming tenant.

Air NZ has renewed its lease for 10 years. Mr Dakin said that, and the Central Park sale, would increase Goodman’s portfolio occupancy to 98% extend the office portfolio’s weighted average lease term to 10.6 years and the overall lease term to 6.2 years.

Earlier story:
10 November 2017: Big property sale follows first-half profit setback for Goodman

Attribution: Company release.

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One apartment out of 6 sells, Sugartree bids fall short

Just one of the 6 apartments auctioned at Ray White City Apartments yesterday was sold under the hammer.

The one sale, of a unit in the Spencer on Byron in Takapuna where there are remediation expenses, followed a contest between 4 bidders.

There were also multiple bidders for 2 units in stage 2 of the Sugartree development at the top of Nelson St, Centro, on the western edge of the cbd, where off-the-plan buyers took ownership last month. However, bidding on both petered out short of the reserve.


Learning Quarter

The Quadrant, 10 Waterloo Quadrant, unit 1906:
Features: 32m², one bedroom
Outgoings: rates $1237/year including gst; body corp levy $3930/year
Income assessment: $420-440/week furnished
Outcome: passed in after bid at $290,000 & vendor raise to $350,000
Agents: May Ma & Mark Li

Victoria Quarter

Sugartree Centro, 145 Nelson St, unit 202:
Features: 56m² internal, 4m² balcony, one bedroom + flexi room, secure covered parking space, storage locker
Outgoings: rates to be confirmed; body corp levy $2766/year
Income assessment: $550-600/week furnished
Outcome: passed in at $500,000
Agent: Dominic Worthington & Ady Huang

Sugartree Centro, 145 Nelson St, unit 706:
Features: 53m², 5m² balcony, one bedroom, study
Outgoings: rates to be confirmed; body corp levy $2671/year
Income assessment: $530-580/week furnished
Outcome: passed in at $480,000
Agent: Lisa Zhang

Isthmus west

Mt Eden

66 Mt Eden Rd:
Features: 130m², 4 bedrooms, 2 bathrooms, 2 parking spaces
Outgoings: rates $2946/year including gst; body corp levy $5968/year
Income assessment: $950-1050/week furnished
Outcome: passed in at $750,000
Agents: Dusan Valenta & Adele Keane

St Lukes

Tremont Apartments, 4 Wagener Place, unit 110:
Features: 130m², 3 bedrooms, 2 bathrooms, 2 parking spaces
Outgoings: rates $2207/year including gst; body corp levy $6728/year, plus $5382 for building investigation & legal levies relating to leaks; the vendor agreed to assign its rights & causes of action to the buyer
Income assessment: $750/week furnished
Outcome: passed in at $250,000
Agents: Dusan Valenta & Adele Keane



Spencer on Byron, 9-17 Byron Avenue, unit 1106:
Features: 48m², fully furnished one bedroom, double balcony
Outgoings: rates $1178/year including gst; body corp levy $3140/year, the vendor has assigned any recovery from remediation legal action to the buyer and the unit has been sold on an “as is, where is” basis
Outcome: sold for $275,000
Agents: James Mairs & Gillian Gibson

Attribution: Auction.

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7 of 19 intensive homes sell at Barfoot auctions

7 sold at Barfoot & Thompson’s city office auction sessions on Wednesday & Thursday out of 19 intensive living units listed below, which include apartments in both the cbd & suburbia, traditional brick & tile units, some terraces & townhouses and, from the Wednesday afternoon session, some cross-leased properties.

The properties listed below are all intensive in some form, so exclude standalone homes (unless they’re on a cross-lease).

A regular feature of the market is the appearance of properties at various stages of leaky building remediation, and 2 fit that description here.

Every agency handling apartments also has a supply of units in the brand-new Sugartree development’s second stage, Centro, to offer. Ray White City Apartments had 2 yesterday and Barfoots had one – all passed in.

The auction rooms have mostly been quiet, and the distinguishing feature has been the high proportion of the offering which attracted no bid – 6 of those listed here – despite, in some cases, bidders registering.


Learning Quarter

Tetra House, 85 Wakefield St, unit 413:
Features: one bedroom, 2 bathrooms
Outgoings: body corp levy $4196/year
Outcome: no bid, back on market at $349,000
Agents: John Zhang & Richard Tan


Kiwi on Queen, 421 Queen St, unit 805:
Features: 2 bedrooms
Outgoings: body corp levy $4591/year
Income assessment: $480/week current, fixed until February
Outcome: sold for $310,000
Agents: Stephen & Leo Shin

Victoria Quarter

City Oaks, 188 Hobson St, unit 210:
Features: fully furnished 2 bedrooms
Outgoings: rates $1201/year including gst; body corp levy $5775/year
Income assessment: vacant
Outcome: passed in at $260,000
Agents: Johnson Chen

Sugartree Centro, 145 Nelson St, unit 212:
Features: 100m² – 76m² internal, 24m² balcony, 2-bedroom apartment, 2 bathrooms, balcony, carport, storage locker
Outcome: passed in
Agent: Tristan Young

Isthmus east

Mt Wellington

50 Rutland Rd, unit 1:
Features: 2-bedroom unit, terrace, carport
Outcome: sold for $650,000
Agents: Carolyn & Peter Brooks


44 Pilkington Rd, unit 5:
Features: 2-bedroom unit, garage
Outcome: no bid
Agents: Jane Wang & Angela Liu


7B Lingarth St:
Features: 383m² section, 200m²-plus 4-bedroom townhouse, 2 bathrooms, office, courtyard, double garage
Outcome: no bid, back on market at $1.469 million
Agent: Paul Groom

50 Monteith Crescent:
Features: 1080m² section, 3 3-bedroom townhouses, all on fixed-term tenancies, 3 parking spaces
Outcome: passed in
Agent: Karin Cooper

276 Victoria Avenue, unit 1:
Features: cross-lease, 1/3 share in 993m², 2-level 4-bedroom townhouse, 2 bathrooms, conservatory, double garage
Outcome: no bid
Agents: Frances Li & Raymond Chan

Isthmus west

Grey Lynn

North Apartments, 197 Great North Rd, unit 205:
Features: 101m², 2-bedroom apartment, 2 bathrooms, balcony, double garage, secure storage
Outgoings: body corp levy $5284/year
Outcome: sold for $1.805 million
Agents: Ryan Harding & Louise Stringer

33 Mackelvie St, unit 1I:
Features: about 60m², one-bedroom apartment, secure parking
Outgoings: body corp levy $3374/year
Income assessment: $550-570/week
Outcome: sold for $550,000
Agent: Tim Roskruge

Summerfield Villas, 386 Richmond Rd, unit 1:
Features: m², 4-level 4-bedroom terrace, 2 bathrooms, double garage, reclad terrace, tandem internal-access garage; repair work on the complex now being undertaken in 3 stages following leaky building claim, work on this unit completed, vendor has set aside balance of repair levy but any further costs would be liability of new owner; there is a code compliance settlement clause
Outgoings: body corp levy $3602/year + remedial levies
Outcome: no bid
Agent: Jonathan White

Mt Eden

2 Matipo St, unit 2:
Features: 2-bedroom unit, garage
Outcome: sold for $958,000
Agents: Sara Knight & Vern Hines

905 Mt Eden Rd, unit 9:
Features: 2-level 5-bedroom house, 3 bathrooms, double internal-access garage, code compliance certificate not yet issued for original construction in 2004 & recladding this year
Outgoings: body corp levy $3422/year
Outcome: passed in at $1.38 million, back on market at $1.595 million
Agent: Sue Saywell

76 Wairiki Rd:
Features: cross-lease, half share in 1015m², 2-storey 4-bedroom bungalow, 2 bathrooms, study, 3 living areas, double garage
Outcome: no bid, back on market at $1.799 million
Agents: Derek Helliwell & Cathy Giles


3 Mars Avenue:
Features: cross-lease, half share in 850m², 3-bedroom bungalow, 2 bathrooms, carport
Outcome: passed in at $1.2 million, back on market at $1.315 million
Agents: Sara Knight & Vern Hines


104 Pupuke Rd, unit 2:
Features: cross-lease, half share in 1421m², 4-bedroom townhouse, 2 bathrooms, garage, carport
Outcome: sold for $980,000
Agent: Jonathan White

Northcote Point

12 Belle Vue Avenue, unit 4:
Features: cross-lease, 1/5 share in 1470m², 2-bedroom unit, internal-access garage
Outcome: sold for $769,000
Agent: Bev Bellas & Jo Meechan



255A Hobsonville Rd, unit 1:
Features: cross-lease, half share in 703m², 3-bedroom house, internal-access garage
Outcome: passed in at $735,000, back on market at $785,000
Agents: Kelly Zhang & Sammi Huang

Attribution: Auctions.

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One commercial sale from 4 auctioned

One of the 4 commercial properties auctioned at Barfoot & Thompson yesterday was sold under the hammer.

Isthmus east


123 Onehunga Mall:
Features: 126m² site, 118m² building, dual access, parking space
Rent: $24,700/year net + gst
Outcome: sold for $566,000
Agents: Nick Wilson & James Marshall


363 Parnell Rd:
Features: 332m² site, 2-storey character building, ground-floor restaurant on 4-year lease from May 2016, 2 4-year rights of renewal, and 2-bedroom flat upstairs leased for one year from March 2017, 153m² building site at rear
Rent: $52,600/year net + gst from restaurant, $575/week from flat
Outcome: no bid
Agent: Marie-Anne Molloy



33 North Rd:
Features: 8514m² site, building area about 4000m², vacant 75-room hotel with conference area, licensed restaurant, 4-bedroom manager’s quarters; resource consent issued for conversion to aged-care facility, 66 delineated parks & 3 bus parks   
Outcome: no bid
Agent: Marie-Anne Molloy



23 Wainui Rd, unit 2C:
Features: 323m² purpose-built food manufacturing & retail outlet         
Outcome: passed in at $1.3 million
Agents: Bruce Jiao & David Goodhue

Attribution: Auction.

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Mixed-use central city buildings sell

Bayleys agents have sold 2 central city buildings on Hobson & Wellesley Sts.


Victoria Quarter

4 Hobson St:
Features: 455m² site, 1123m² 5-level mixed-use building – short-term language school lease on levels 1 & 2, vacant 358m² (including 103m² of balconies) 2-level 4-bedroom apartment above
Rent: $159,000/year net + gst (from language school lease)
Outcome: sold for $5.2 million
Agents: Quinn Ngo, Matt Lee, James Chan & Robert Platt

119 Wellesley St West:
Features: 804m² site opposite the entranceway to the City Works Depot & Sale St, 2-level 1056m² retail & office building fully leased to 6 tenants; city centre zoning permits a wide range of activities, including residential, and has a 30m height allowance
Rent: $300,526/year net + gst
Outcome: sold for $5.65 million at a 5.32% yield
Agents: Brendon Graves, Cameron Melhuish & Ben Wallace

Attribution: Agency release.

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One apartment among 8 residential sales at auction

One apartment sold at Bayleys’ auction on Wednesday and one passed in as the auctioneer did all the bidding on it.

For a new apartment in the One Three Cheshire development in Parnell, and with a dwindling audience at the end of a 12-property auction list, auctioneer Daniel Coulson opened the bidding with an $800,000 indicator – which is all a “vendor bid” really can be – then took it to $850,000, and followed with a comment that “It’s not for sale at $950,000 either”.

Shortly after the auction closed, this unit was listed with an asking price close to $1.2 million. Taking out $80,000 for each parking space (which is not silly money in a market where the value of inner-city carparking remains extremely high), that would price the apartment on internal space at $12,400/m², falling to $11,250/m² if balcony space was included.

In the market of 2016 heading into 2017, those prices for new apartments weren’t ridiculous. But silence is deadly in an auctionroom, and finance & competition conditions have changed drastically.

The apartment that did sell, a larger but low-level unit in a conversion on St Martins Lane, above Grafton Gully, went for about $7500/m², possibly reduced in value by having only one parking space.

Those pricing gauges are checked far more closely in the apartment markets than for standalone houses, and overall the success rate at this auction was high – 8 properties sold out of the 12 on offer, including one large refurbished house with its own pool sold for $3.5 million after negotiations lifted the final bid by $240,000.



2 St Martins Lane, unit 1C:
Features: about 120m², 3 bedrooms, 2 bathrooms, floor-to-ceiling wraparound windows, parking space, storage room, pet-friendly
Outgoings: body corp levy $9353/year
Outcome: sold for $970,000
Agents: Julie Prince & Diane Jackson

Isthmus east


One Three Cheshire, 13 Cheshire St, unit 303:
Features: 83m² internal, 8.45m² deck, 2 bedrooms, 2 bathrooms, tandem parking
Outgoings: body corp levy $5214/year
Outcome: passed in after vendor bids at $800,000 then $850,000, back on market with asking price of $1.189 million
Agent: Suzie Paine

Attribution: Auction.

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Bidders stay clear of office unit auction

The one property up for auction at Colliers yesterday, an office unit on Pitt St at the top of the cbd, failed to attract a bid.



29 Pitt St, unit 2:
Features: 170m² office unit, secure covered parking space
Outcome: no bid
Agents: Simon Felton & Tony Allsop

Attribution: Auction documents.

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Kiwi Property sells Majestic to Investec fund

Kiwi Property Group Ltd has secured an agreement to sell the Majestic Centre in Wellington for $123.2 million to Investec Property Ltd, as the responsible entity for the Investec Australia Property Fund.

As part of the sale arrangement, Investec will appoint Kiwi Property to manage the office tower, which has undergone one of New Zealand’s largest seismic upgrades. It’s Investec’s first New Zealand purchase.

Kiwi Property chief executive Chris Gudgeon said yesterday: “We are immensely proud of what we have achieved for the tenants of the Majestic Centre, raising the seismic performance rating of the office tower to 100% of new building standard.

“Notwithstanding, the Majestic Centre was identified for sale as part of our capital recycling programme. Proceeds from the sale, which is due to settle in December, will be used to pay down bank debt, providing further flexibility for Kiwi Property to invest in line with our strategy.”

In the company’s annual accounts to March 2017, the value of the 21-storey Majestic Centre increased to $119.4 million, but a net value loss of $5 million was recorded after allowing for capex on the seismic upgrade programme completed in January. The building, at 100 Willis St, has a net lettable area of 24,469m² (2322m² retail, 22147m² office) & 240 parking spaces and typical floorplates of 1000m².

Kiwi Property is due to release its result for the September half-year next Monday, 20 November. At the moment it’s showing the Majestic Centre has 92.1% occupancy, a weighted average lease term of 6.8 years & net rental income of $7.1 million.

The buyer, Investec, said it was acquiring the property on an initial yield of 7.1% and with average annual contractual rental escalations of about 2.75%. It said the property was 98% occupied and had a long weighted average lease expiry of 6.6 years.

Investec is a South African investment bank which has a dual listing in Johannesburg & London. It floated the Investec Australia Property Fund on the Johannesburg Stock Exchange in 2013, launching with an $A130 million portfolio of 8 industrial & office properties.

That portfolio now comprises 25 properties worth $A942 million, and fund chief executive Graeme Katz said yesterday that was a scale at which management believed an ASX listing could be considered.

He added: “We continue to believe in the case for investing in good quality investment properties in Australia & New Zealand. The fund’s current equity yield of 8.2% is attractive for South African investors, especially as it is underpinned by the region’s favourable macro-economic conditions, property yield spread over historically low funding costs locked in and income returns in hard currency.”

14 November 2017: IAPF portfolio value approaches $A1.0bn mark through acquisition & value uplift

Attribution: Kiwi & Investec releases.

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