Archive | Te Atatu Peninsula

Residential market at a crossroads

You could see a residential property market at a crossroads yesterday.

In 2 sessions at Barfoot & Thompson’s city auctionroom, 30 properties were offered – well under half the 80 or so put through in a day in the peak of the market late last year and a few times this year.

Chinese investors have been less imposing visitors to Auckland’s auctionrooms recently, but crowded the room for the main afternoon session yesterday. Still, they weren’t snapping everything up without caring too much about the price.

13 properties were sold under the hammer, of which 7 contained apartments, suburban units or cross-leased homes.

Another 2 offering apartment development propositions were passed in without a bid being made – the one in Avondale pictured above and the property at the bottom of this page where concept designs have been drawn up.

You will see more like them popping up as opportunists start to scour the region in search of sites that can be intensified under the new unitary plan rules, in a similar way to the surge of cross-leases created about 30 years ago.

They’re in a different market from the standalone homes most sought by the foreign investors, and they also differ from the cross-leases, which produced ground-level crowding but little height.

One of the development options offered yesterday is in Avondale, a suburb destined for considerable change. It’s a dormitory suburb that’s close to both the central city and the shops at New Lynn, and already has many sites earmarked for apartments.

And there you see the crossroads: a downmarket suburb given new attention as the investor focus on the expensive spots in the east wavers, while some attention remains on areas in the west of the isthmus that have seen prices rise sharply this year, prompted mostly by development opportunities.

The other factor in the changing residential market is the effect of Reserve Bank constraints on investment, limiting the ability of traders to turn over properties, and also possibly limiting the level of initial investment in apartment projects that makes construction possible.

Isthmus east

Epsom

43B Cornwall Park Avenue:
Features: cross-lease, half share in 1078m², 4 bedrooms, 2 bathrooms, patio, double internal-access garage
Outcome: sold for $2.55 million
Agents: Diana Bucowski & Peter West

34 Empire Rd, unit 1:
Features: cross-lease, half share in 827m², 4 bedrooms, 3 bathrooms, sunroom, office, double garage
Outcome: sold for $1.69 million
Agents: George Fong & Laura McAuley

52 Manukau Rd:
Features: cross-lease, quarter share in 650m², 3-bedroom unit, carport
Outcome: no bid
Agents: Kelly Zhang & Mark Tung

Mt Wellington

9 Mountain Rd, unit 17:
Features: 75m², 2-bedroom unit, carport
Outgoings: body corp levy $1555/year
Outcome: passed in
Agent: Tanzi Rose

Isthmus west

Avondale

13, 18A & 18B Ahiriri Avenue (pictured above):
Features: fee simply 674m² & 2 cross-leased half shares in 1044m², 3 homes on total 1718m² in 3 titles – 2 3-bedroom bungalows, 2-bedroom home, zoned under the proposed unitary plan for terraced housing & apartments
Outcome: no bid when offered together; no bid on No 13 when offered alone, other 2 then withdrawn
Agents: Bella Stefano & Sheba Soundhar

Grey Lynn

676 Great North Rd:
Features: cross-lease, half share in 776m², 3-bedroom ex-state bungalow, basement 4-car garage, storage
Outcome: passed in
Agents: Matt O’Rourke & Ryan Harding

Mt Albert

13A Lorraine Avenue:
Features: cross-lease, half share in 855m², 198m² home on 2 levels, 5 bedrooms, 2 bathrooms, deck, double garage
Outcome: sold for $722,000
Agent: Kelly Zhang

Mt Eden

7 Ellerton Rd, unit 2:
Features: cross-lease, quarter share in 937m², 2-bedroom unit, deck, carport
Outcome: no bid
Agents: Vern Hines & Sara Knight

39 Shackleton Rd, unit 3:
Features: cross-lease, quarter share in 1223m², 2-bedroom unit, 2 bathrooms, deck, tandem garage
Outcome: passed in
Agent: Robyn Preece

Sandringham

27 Lancing Rd, unit 1:
Features: cross-lease, quarter share in 825m², refurbished 2-bedroom unit, carport
Outcome: sold for $784,000
Agents: Lucy Liu & Calvin Roche

183 Mt Albert Rd, unit 2:
Features: cross-lease, quarter share in 1012m², 2-bedroom unit, study, garage
Outcome: sold for $752,000
Agent: Qi Li

North-east

Totara Vale

2 Ellice Rd, unit 2:
Features: cross-lease, half share in 675m², 2 bedrooms, office, garage, storage
Outcome: sold for $671,000
Agents: Giovanna Ferrario & Mark Garratt

North-west

New Lynn

45 Astley Avenue, unit 2:
Features: cross-lease, 1/6 share in 1396m², 3 bedrooms, internal-access garage, courtyard
Outcome: no bid, back on the market at $600,000
Agent: Sue Allan

1 Copley St, unit 3:
Features: cross-lease, 1/3 share in 1011m², 2-bedroom duplex, office, garden shed
Outcome: sold for $622,000
Agent: Sue Allan

Te Atatu Peninsula

The design concept for apartments on Kervil Avenue, Te Atatu Peninsula.

The design concept for apartments on Kervil Avenue, Te Atatu Peninsula.

57 & 59 Kervil Avenue:
Features: 2 homes now zoned terrace housing & apartments under the proposed unitary plan – 100m² 3-bedroom, garage on 850m², 90m² 3-bedroom on 809m²; indicative concept plans show 54-apartment complex
Outcome: passed in when offered together, not offered separately
Agents: Ann Lepper & James Gai

Attribution: Auctions.

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8 suburban intensive properties sell at Barfoot auctions

7 of 18 properties in a range of intensity (apartments, suburban units, townhouses, cross-leased houses) auctioned at Barfoot & Thompson on Wednesday were sold under the hammer, and one of the 2 auctioned yesterday afternoon also sold. You can check results from Thursday morning’s apartments auction in a separate story linked below.

Isthmus east

Epsom

1A Merivale Avenue:
Features: 3-bedroom unit, carport
Outgoings: body corp levy $630/year
Outcome: passed in, back on market at $1.08 million
Agents: George Fong & Alex Wu

Glendowie

14C Crossfield Rd:
Features: cross-lease, 1/3 share in 1244m², 4 bedrooms, 3 bathrooms, conservatory, double internal-access garage
Outcome: sold for $790,000
Agents: Jane Wang & Dragon Zhou

Meadowbank

86 St Johns Rd, unit 2:
Features: cross-lease, 1/3 share in 809m², 3 bedrooms, 2 bathrooms, deck, offstreet parking
Outcome: no bid
Agent: Chase Liu

Onehunga

66F Grey St:
Features: 2-level 2-bedroom unit, balcony, carport
Outgoings: body corp levy $1922/year
Outcome: sold for $395,000
Agent: Richard Prasad

461 Onehunga Mall, unit 2:
Features: cross-lease, 1/3 share in 1214m², 3 bedrooms, 2 bathrooms, internal-access garage
Outcome: sold for $1.25 million
Agent: Paul Studman

Panmure

51 Ireland Rd, unit 36:
Features: 2-bedroom townhouse in gated complex, carport
Outgoings: body corp levy $2808/year
Outcome: passed in at $528,000
Agents: Rain Diao & Jane Chen

Remuera

103 Remuera Rd, unit 2:
Features: 155m² site + 1/7th of 291m², 3-level 4-bedroom terrace including self-contained ground-floor area, 3 bathrooms, deck, double internal-access garage
Outcome: no bid
Agents: Ross & Joss Goodall

128A Upland Rd:
Features: cross-lease, half share in 743m², 4 bedrooms, 2 bathrooms, study, double garage
Outcome: passed in at $1.3 million
Agent: Dennis Dunford

Isthmus west

Avondale

48 Eastdale Rd, unit 3:
Features: cross-lease, 1/3 share in 771m², 2-bedroom unit, garage
Outcome: sold for $565,000
Agent: Francis Fan

Herne Bay

15B Saratoga Avenue:
Features: cross-lease, 1/3 share in 731m², 2-bedroom unit, carport
Outcome: passed in
Agents: Carl Madsen & George Damiris

Mt Eden

3 Akiraho St, unit 9:
Features: 130m², 3-bedroom apartment in industrial conversion, 2 bathrooms, 2 gated parking spaces
Outgoings: body corp levy $2909/year
Outcome: sold for $861,000
Agents: George Fong & Laura McAuley

19 Ellerton Rd:
Features: 936m² section, 7–bedroom home converted into 3 flats, one of 3 bedrooms and 2 of 2 bedrooms, each with a carport
Outcome: passed in at $1.9 million
Agent: Gill Macdonald

8 Graysons Lane:
Features: cross-lease, half share in 796m², 4 bedrooms, 2 bathrooms, offstreet parking
Outcome: sold for $1.885 million
Agent: Repeka Lelaulu

25 Rossmay Terrace, unit 18:
Features: 2-bedroom townhouse, internal-access garage
Outgoings: body corp levy $2455/year
Outcome: no bid
Agent: Repeka Lelaulu

North-east

Belmont

13 Creamer Avenue, unit 3:
Features: cross-lease, 1/6th share in 809m², 60m² 2-bedroom unit, carport
Outcome: passed in, back on market at $695,000
Agents: Jonathan White

North-west

New Lynn

1 Armstrong Place, unit 1:
Features: cross-lease, half share in 637m², 2-bedroom 120m² duplex, covered deck, garage
Outcome: passed in, back on market at $640,000
Agents: Aken Yuan & Michelle Zhou

Te Atatu Peninsula

9B Tawa Rd:
Features: cross-lease, 1/3 share in 1331m², 3-bedroom unit, deck, carport
Outcome: sold for $560,000
Agent: Emma Zhang

Te Atatu South

12 Poto Rd:
Features: 976m² section, 6-bedroom house converted to 2 flats, 3-car garaging
Outcome: no bid, back on market at $1.28 million
Agent: Sharlene Huang

South

Howick

47 Drake St, unit 2:
Features: cross-lease, half share in 900m², 3 bedrooms, 2 bathrooms, attic, wraparound balcony, garage
Outcome: sold for $850,000
Agent: Doug Lum

Apartments story today: 5 units sell at Barfoots

Attribution: Auctions.

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4 sales & a lease in north-west

Bayleys agents have signed 4 sales in the north-west of the region, and one lease.

North-west

Sales

Helensville

84 Commercial Rd:
Features: 293m2 site, 211m2 retail outlet built around 1910
Outcome: sold vacant for $312,000
Agents: Grant Miller & Laurie Bell

Henderson

192 Universal Drive, unit A6:
Features: 1210m2 retail unit in Lincoln North Shopping Centre occupied by pet store Animates NZ Holdings Ltd since 2006, renewed for a further 6 years in October 2015
Rent: $282,477/year net + gst
Outcome: sold for $3.25 million at an 8.7% yield
Agents: Alan Haydock & Cameron Melhuish

Kelston

24-26 Cartwright Rd (pictured):
Features: 1993m2 site in 2 titles, 490m2 warehouse on one title occupied by joinery business
Outcome: sold to tenant for $1.48 million
Rent: $61,000/year net + gst
Agents: Mike Adams & Grant Miller

Te Atatu Peninsula

29 Neil Avenue:
Features: 819m2 site, retail & residential block comprising 4 shops (dairy, hair salon & 2 food outlets), all with 2-year leases & 2 2-year rights of renewal, and vacant 3-bedroom flat recently refurbished & with potential rent of $400-$450/week
Rent: $39,219/year net + gst
Outcome: sold for $880,000
Agent: Tony Chaudhary

Lease

Swanson

114 Swanson Rd, unit 3: 
Features: 1750m2 warehouse
Rent: $140,000/year net + gst, leased for 4 years, with fixed annual increase of 2.5% plus one 4-year right of renewal
Agent: James Appleby

Attribution: Agency release.

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21 sell out of 34 offered at Bayleys Total Property auction

Bayleys finished its Total Property auction series for the year with 20 sales under the hammer on Wednesday from 34 properties offered, and a post-auction sale confirmed yesterday. Another 11 were withdrawn from the auction.

Image at top: 8 Newton Rd, Grey Lynn, a refurbished building with a mix of uses including a loft-style apartment, sold vacant.

CBD

Quay Park

8 Quay St, unit 1:
Outcome: withdrawn from auction
Agents: Owen Ding & Quinn Ngo

Victoria St

Lister Building, 9B Victoria St East:
9B Victoria Street East, Auckland Central:
Features: 48m² shop, lease to convenience store for 3 years from June 2015, one 6-year right of renewal
Rent: $48,000/year net + gst, yearly 2.5% increases from June 2018 if renewal exercised
Outcome: sold for $820,000 at a 5.85% yield
Agents: Quinn Ngo & Owen Ding

Waterfront

Princes Wharf, 137 Quay St, shed 19, unit 2:
Features: 482m2 leasehold commercial unit plus 63.5m² outdoor seating area, ground rent prepaid until 2095
Outcome: sold for $1.15 million at mortgagee sale
Agent: Tony Bayley

Isthmus east

Ellerslie

38 Eaglehurst Rd, unit 9:
Outcome: withdrawn from auction
Agents: Dave Stanley & James Valintine

Epsom

89B Great South Rd:
Features: 167m2 site, character 2-level 111m2 live/work unit, 2-year lease to tailoring business from March 2015 plus one 2-year right of renewal
Rent: $28,350/year net + gst
Outcome: sold for $675,000 at a 4.2% yield
Agents: Oscar Kuang, James Chan & Terry Kim

Otahuhu

24 Atkinson Avenue, Otahuhu, retail building with development potential.

24 Atkinson Avenue, Otahuhu, retail building with development potential.

24 Atkinson Avenue:
Features: 385m2 mixed-use corner site, height limit of 20.5m under proposed unitary plan, 3 ground-floor retail outlets & 2 flats upstairs
Rent: $42,000/year net + gst from 2 retail leases & one residential tenancy
Outcome: sold for $985,000
Agents: Piyush Kumar, Shane Snijder & Tony Chaudhary

Penrose

35 Maurice Rd, unit I:
Outcome: withdrawn from auction
Agents: Tony Bayley

Isthmus west

Avondale

1977 Great North Rd, Avondale, sold at a yield just under 5%.

1977 Great North Rd, Avondale, sold at a yield just under 5%.

1977 Great North Rd:
Features: 202m² site, 265m² building in block of shops, ground-floor lease to a fruit & vege retailer until June 2017, one 3-year right of renewal, basement area vacant
Rent: $26,400/year net + gst
Outcome: sold for $530,000 at a 4.98% yield
Agents: Mike Adams, James Appleby & Quinn Ngo

Eden Terrace

74D France St:
Outcome: passed in
Agents: Ben Wallace & Matt Gordon

33 Randolph St:
Features: Vacant 2-level 364m² building, ground-floor warehousing & refurbished loft-style upper level suitable for office or apartment use; on 281m² mixed-use site with increased height limit of 32.5m under proposed unitary plan
Outcome: passed in at $1.8 million
Agents: Damien Bullick, Alan Haydock & Jean-Paul Smit

Grey Lynn

564 Great North Rd:
Outcome: passed in, vendor bid of $600,000
Agents: Simon Aldridge & Michael Nees

8 Newton Rd:
Features: 304m2 mixed-use site, 317.5m2 striking architecturally designed & refurbished 2-level building, loft-style apartment with open-plan, character ground-floor space, 4 parking spaces
Outcome: sold vacant for $1.6 million
Agents: Cameron Melhuish & Andrew Wallace

116-120 Surrey Crescent:
Features: 3 dwellings converted to childcare centre plus flat, total 575m² on 1515m² residential 6A site, zoned mixed use under proposed unitary plan; 10-year lease to NZX-listed Evolve Group from July 2012, 2 3-year rights of renewal
Rent: $190,383/year net + gst, 2-yearly CPI adjustments
Outcome: sold for $4.155 million at a 4.6% yield
Agents: Mark Pittaway & James Chan

Mt Eden

718 Dominion Rd:
Outcome: withdrawn from auction
Agents: Oscar Kuang & James Chan

Pt Chevalier

1104 Great North Rd:
Features: 255m² retail unit, parking at front, occupied by Video Ezy on monthly lease until end of year, plus ASB ATM lease
Rent: $88,100/year net + gst
Outcome: sold for $1.05 million at an 8.4% yield
Agents: Quinn Ngo & Matt Lee

North

Kerikeri

60 Kerikeri Rd, unit G06:
Outcome: no bid
Agents: Michael Nees & Brian Caldwell

Warkworth

Artist’s impression of The Grange, Warkworth.

Artist’s impression of The Grange, Warkworth.

3 tenancies were taken to auction in the new Grange retail convenience centre being developed by Square & Main Street Ltd (Adam Reynolds), nearing completion on the former garden & hardware centre site on the southern side of Warkworth. The property at 67 Auckland Road (State Highway 1) covers 7089m²and will have 22 tenancies.

The Grange, 67 Auckland Road, unit PU4, The Coffee Club:
Features: 210m2 unit, including 50m2 covered, all-weather deck & courtyard area, 10-year lease to Coffee Club & one 10-year right of renewal
Rent: $82,500/year net + gst
Outcome: sold for $1.55 million at a 5.3% yield
Agents: James Chan & Steve Orr

The Grange, unit PU2, Bottle-O:
Features: 200m² unit, 8-year lease to independently owned & operated NZ retail liquor store plus 2 4-year rights of renewal
Rent: $70,000/year net + gst
Outcome: sold for $1.16 million at a 6% yield
Agents: Quinn Ngo & Steve Orr

The Grange, unit PU3A, Indian restaurant:
Features: 142m² unit, including 25m2 deck, leased to local Indian restaurant on 10-year term, 2 5-year rights of renewal
Rent: $50,550/year net + gst
Outcome: passed in at $600,000
Agents: James Chan & Matt Lee

North-east

Albany

52 Oteha Valley Rd, unit M:
Features: 278mstandalone retail building occupied by the Meat King for 14 years, new 4-year lease plus one 4-year right of renewal
Rent: $114,000/year net + gst
Outcome: sold for $2.05 million at a 5.6% yield
Agents: Adam Curtis & Adam Watton

Birkenhead

65-67 Birkenhead Avenue:
Outcome: passed in at $2.6 million
Agents: Damian Stephen & Adam Curtis

Rosedale

8 Arrenway Drive:
Outcome: no bid
Agents: Matt Mimmack & Laurie Burt

36 Tarndale Grove:
Outcome: withdrawn from auction
Agents: Matt Mimmack & Ashton Geissler

18 Triton Drive, unit H1:
Outcome: passed in, vendor bid of $900,000
Agents: Terry Kim & Damian Stephen

49A William Pickering Drive:
Features: 368m2 building, 56m2 courtyard, 24 parking spaces, 9-year lease to New Brew bar & restaurant from September 2014 & one 6-year right of renewal
Rent: $123,360/year net + gst
Outcome: sold for $2.265 million at a 5.4% yield
Agents: Ashton Geissler, Ranjan Unka, Damian Stephen & Tony Chaudhary

Sunnynook

318 East Coast Rd:
Outcome: passed in
Agents: Tony Chaudhary & Ranjan Unka

Wairau Valley

20 Link Drive, unit MM:
Outcome: no bid
Agents: Adam Watton & Michael Block

North-west

Henderson

103 Lincoln Rd:
Features: 809msite, 110m2  dwelling converted for office use
Outcome: sold with vacant possession for $1 million
Agents: Tony Chaudhary & James Appleby

192 Universal Drive, unit A6:
Outcome: withdrawn from auction
Agents: Alan Haydock & Cameron Melhuish

New Lynn

76 Delta Avenue:
Outcome: passed in
Agents: Grant Miller & Peter Turner

Te Atatu Peninsula

29 Neil Avenue:
Features: 819mcorner site, 3 retail tenancies – a hairdresser, dairy & chocolate maker – plus vacant 3-bedroom flat    
Rent: $47,650/year net + gst
Outcome: sold for $880,000 at a 5.4% yield
Agents: Tony Chaudhary & Mike Adams

South

East Tamaki

171 Harris Rd:
Outcome: withdrawn from auction
Agents: Jamsheed Sidhwa & Luke Carran

2 Kerwyn Avenue, unit C:
Features: 1149m² industrial unit with access also from Springs Road, 24 parking spaces, seismic assessment of 140% new building standard
Rent: holding income until May of $149,000/year net + gst
Outcome: sold to owner-occupier for $1.7 million
Agents: Tony Chaudhary, John Bolton & Janak Darji

5A Nandina Avenue:
Features: 806m² roadfront industrial unit, occupied by gym for over 25 years, currently on 6-year lease from August 2011 with 2 2-year rights of renewal, 21 parking spaces
Rent: $88,000/year net + gst
Outcome: sold for $1.5 million at a 5.9% yield
Agents: Dave Stanley, Mike Marinkovich, & Tony Chaudhary

Pakuranga, Highland Park

168 Aviemore Drive, unit G:
Features: 314m2 upper level of 2-level commercial building, new 4-year lease plus 2 4-year rights of renewal to Creative Dental Ltd
Rent: $79,020/year net + gst
Outcome: sold for $1 million at a 7.9% yield
Agents: Geoff Wyatt & Nick Bayley

Howick

5 retail units in an established convenience centre at 219 Moore St, Howick, were on Wednesday’s auction list but 3 were among properties withdrawn when the auction ran over time.

219 Moore St, unit A:
Outcome: passed in at $1.135 million
Agents: Millie Liang & Tony Chaudhary

219 Moore St, units B, C & D:
Outcome: withdrawn from auction
Agents: Millie Liang & Tony Chaudhary

219 Moore St, unit E:
Outcome: passed in at $1.15 million
Agents: Millie Liang & Tony Chaudhary

10 Wellington St, unit 8:
Features: 85m² retail unit in The Terraces retail & residential complex, leased to clothing store
Rent: $33,592/year net + gst
Outcome: sold for $470,000 at a 7.1% yield
Agents: Quinn Ngo & Geoff Wyatt

Mangere

17 Airpark Drive, unit 7:
Features: 450m2 modern, high-stud, tilt slab warehouse in Airport Oaks precinct
Outcome: sold with vacant possession for $870,000
Agents: Nick Bayley & Dave Stanley

Manurewa

165 Great South Rd:
Features: 455m2 site, 350m2 retail block with 3 tenants – dairy, hair salon & butcher
Rent: $90,800/year net + gst
Outcome: sold for $1.55 million at a 5.85% yield
Agents: Tony Chaudhary & Piyush Kumar

Waiuku

18 Martyn St:
Outcome: withdrawn from auction
Agents: Tonia Robertson & Tony Chaudhary

South of Bombays

Waikato – Raglan

2 Main Rd:
Features: 1167m² site, BP service station & workshop, 20-year head lease from July 2014 to a wholly owned subsidiary of No 8 Retail Group Ltd, 4 6-year rights of renewal, only petrol station in the town
Rent: $115,000/year net + gst, 4% rental increases every 2 years
Outcome: sold post-auction for $ 2.115 million at a 5.4% yield
Agents: Tony Chaudhary & Janak Darji, Bayleys South Auckland

Attribution: Auction.

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Court baulks at windfall for Te Atatu litigation funder

The Court of Appeal has denied a litigation funder a windfall return in a case revolving around land on the Te Atatu waterfront which the Auckland Harbour Board decided in 1949 should become a new port.

The litigation funder, S40 Ltd, has 10 shareholders headed by interests associated with director David Pritchard, of Otaki. They backed the claim by 13 individuals and the Royal NZ Foundation of the Blind, as successors to the interests of the former 7 landowners.

Mr Pritchard, a former director of Housing NZ Ltd, Port Marlborough NZ Ltd and Wellington International Airport Ltd, has had a wide range of property interests. He became a tetraplegic at the age of 61.

The other director is Brian Fitzgerald, a former director of Strategic Finance Ltd who’d moved on well before its demise 5 years ago. He’s maintained a number of property finance interests, including Mondial Associates Ltd, Triumph Capital Ltd, Wakefield Capital Ltd & Willeston Capital Ltd, and owns a number of interests on Princes Wharf, Auckland, including Euro Bar Ltd, parking & commercial units.

S40 refers to section 40 of the Public Works Act 1981, which requires land taken for a public work but no longer required for that purpose to be offered back to the former owner or successor.

The court found against Auckland Council, the successor to the harbour board, on some central points, but baulked at allowing the windfall, largely because of council input over the last 30 years.

The judges – Justices Rhys Harrison (who wrote the court’s reasons), Christine French & Jillian Mallon – said in their ruling, issued last Friday: “We accept, of course, that the owners have established the council’s breaches of their rights; and that in the normal course they should be vindicated by declaratory relief. But, where the owners’ delay has been prolonged and where the effect of allowing them to assert their rights now would be adverse to the council & its ratepayers, the interests must be balanced.

“In undertaking this balancing exercise we repeat that the purpose of section 40 is remedial, designed to confer a personal, not an economic, benefit on those with an attachment to the land. The effect of the litigation funding arrangements is that, in the event of success, the owners will be bound to transfer the land immediately to S40 Ltd. Precisely what they will receive in return was the subject of some disagreement between the parties at the hearing and in additional submissions filed afterward.”

The harbour board notified the owners of the 7 properties in 1949 that their rural land was within an area designated for the construction & development of port facilities and, over the next few years, the board acquired over 75ha from them. But by the late 1970s it became apparent that the port proposal wouldn’t proceed, and the land was progressively rezoned and used for other purposes. Some is now a residential subdivision, most is within a public park and its potential value for housing is very substantial.

Successors of the 7 original owners applied to the High Court for declaratory relief in 2005. Justice John Fogarty upheld all their substantive claims except on a discrete point of statutory interpretation, which he decided in the council’s favour. As a result, the owners’ claims failed.

The Court of Appeal disagreed with Justice Fogarty’s conclusion on the point of statutory interpretation, but otherwise agreed with his dismissal of the council’s defences other than on the standing of 3 owners to sue. As a result, 4 of the 7 owners satisfied the legal elements for their claims.

And then came the crunch: “The final & ultimately decisive question will be whether we should exercise our discretion to grant the owners’ applications for declaratory relief. In this respect the factors of delay and the nature of the owners’ interests in the Te Atatu land will assume particular importance.

“We agree with Justice Fogarty that as a matter of fact the Gazette notice effectively froze both the market & the price. Allowing the council to rely on circumstances which have arisen in the 13 years between the board’s failure to address section 40(2)(c) in a timely way and the council’s resolution would undermine its remedial purpose and enable the council to benefit from its predecessor’s default. And we add that the council’s reliance in its resolution on the section 40(2)(b) factor – of a significant change in the character of the land for the purpose of the public work for which it was held – could not be sustained where no steps had been taken before 1 August 1983 to develop the land for a harbour….

“We have concluded the board was under a duty from 1 August 1983 to offer back the Williams, Flavell, Robertson & Stewart land.”

The Court of Appeal said it appeared undisputed that the owners didn’t learn of the harbour board’s breach of its section 40 obligation until they were approached by representatives of their litigation funder, S40 Ltd, in the early 2000s. The 2 parties who were earlier aware of their rights were both met by the board’s absolute denial of any obligation or by silence.

“The question is whether, with knowledge of the facts giving rise to a right of action, the owners have by their inactivity placed the council in a position where it would be inequitable or unreasonable if the remedy were later asserted.”

In October 1995, Waitakere City Council had 35ha designated for the Harbour View residential subdivision, some became coastal reserve and the remaining 30ha was designated for a public area. The Court of Appeal said the landowners or their successors should have known by then the council intended to use the land for purposes other than for a port.

The council imposed a special levy to develop the Harbour View–Orangihina Park, which was partially funded by a uniform annual charge raised on all properties in Waitakere City for 5 years from July 2001.

Counsel for the landowners’ successors, Colin Carruthers QC, sought to counter the difficulties the council would now face in transferring the Te Atatu land to private interests and unwinding the formal changes to its legal status, saying the council would always be in a position to reacquire it.

“However, this submission serves to highlight an inequity which undermines the owners’ claims. S40 Ltd, the owners’ litigation funder, would be the principal beneficiary of success. The company would acquire the Te Atatu land at 1983 prices, without any adjustment for the time value of money in the intervening 22 years. Inflation over this period, and the rapidly increased demand for land for residential purposes, mean its 1983 value is a fraction of its current market worth. On one estimate, the value of the Te Atatu land as a whole is about $50-70 million. To allow the owners, or more particularly S40 Ltd, to take at the council’s expense the benefit of windfall profits attributable solely to extraneous factors would be contrary to the policy underlying section 40.

“We accept, of course, that the owners have established the council’s breaches of their rights; and that in the normal course they should be vindicated by declaratory relief. But, where the owners’ delay has been prolonged and where the effect of allowing them to assert their rights now would be adverse to the council & its ratepayers, the interests must be balanced.”

The court understood the owners would receive payments in the range of 2.2-4.4% of the current land values (except for the Royal Foundation of the Blind, which was entitled to a larger sum, and David McCormick who would receive a fixed sum of $2 million). “On the other hand, as well as expressing disagreement with some of these calculations, Mr Carruthers emphasised alternative options for the owners under the agreements. Among them are settlement and acquiring shares of an equivalent value in a landholding company under S40 Ltd’s primary control. He also criticised the council’s valuation figures as misleading.”

Out of that, the court said these disputes were beside the point “because, even on Mr Carruthers’ approach, which results in a higher proportion of the land’s current market value going to the owners, the evidence establishes that S40 Ltd has the predominant interest in this litigation and that it is solely of a financial nature….

“However, the change would ultimately be one of degree only. Critically, S40 Ltd would still obtain a substantial windfall attributable to the relentless effects of inflation on land values in West Auckland since 2005. And the council would remain both exposed to a corresponding financial burden and vulnerable to losing the amenity value of the Te Atatu land. These factors would remain decisive against the owners’ amended position.”

The court said in its conclusion: “It is now too late to require the council to offer the Te Atatu land or part of it back to the owners. While the large balance not developed for housing still retains its original physical character, this area as a whole now has an obvious amenity value to the general public, to which local ratepayers have contributed by paying special levies. This value would be lost if the land reverted to private ownership and was later rezoned for development.

“By comparison, the owners would not lose the right which section 40(2) was designed to recognise – they have no personal interest or attachment to the land. Their only interest, or more particularly that of their litigation funder, is financial in nature.

“The owners seek recovery of the land for a windfall profit at the council’s expense in circumstances where the law assumes they have already been fairly compensated for the loss of their land; and where a declaration would effectively grant them a financial remedy which would otherwise be time-barred. The litigation funder would be in a real sense the ultimate beneficiary of the owners’ success.”

Because the court devoted much of its judgment to addressing some defences the council raised – “which, on an objective appraisal of the High Court judgment and the previous judgments on its unsuccessful application to strike out, should not have been pursued on appeal” – no order was made for costs.

Links: Court of Appeal judgment, Charles William Williams And Ors v Auckland Council
Media release

Attribution: Judgment, Companies Register.

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Update – panel change: Panels appointed to hear Queens Wharf artwork & Takapuna boating hub applications, plus others

Published 3 June 2015, updated 4 June
As often occurs, membership of one hearing panel appointed on Tuesday had an immediate change.

The panel to hear the Takapuna application for a marine activity hub had Lisa Whyte (Hibiscus Bays) named as local board member on the panel, however she declined the role. No replacement has been named yet.

Committee chair Linda Cooper told me & Ms Whyte in an email today: “It seems that a reporter who was at the meeting has legitimately posted this on social media before our hearings staff were able to confirm availability in person with the commissioners. It is very common for proposed commissioners to be unavailable or occasionally have a conflict therefore frequently I am asked to approve an alternate commissioner. This means resolutions on the day are sometimes not accurate by the time the hearing occurs.”

Almost like an accident, except I was sitting at the media table in plain view at an open meeting. It used to be normal for council staff to ensure before the meeting that proposed commissioners were going to be available for a hearing – in which case they also learned of conflicts.

Auckland Council’s hearings committee appointed commissioners on Tuesday to hear 5 resource consent applications, including the council application to place a public artwork on Queens Wharf and the proposal to establish a boating hub on the Takapuna camping ground.

The committee also:

  • designated 12 independent hearing commissioners as duty commissioners
  • resolved to recruit more commissioners, and
  • began a review of the process for determining demolition resource consent applications in the isthmus residential 1 zone.

Commissioner appointments:

Queens Wharf, public artwork at wharf end (application already publicly notified, submissions closing Monday 8 June): Leigh McGregor (chair), Robert Scott & Bill Kapea

Takapuna Beach, 22 The Promenade, Takapuna Beach Holiday Park site, application by Harbour Access Trust for resource consents for community marine activity hub: Karyn Sinclair (chair), Rebecca Macky, Melean Absolum & local board member Lisa Whyte (from Hibiscus Bays)

, appointment of 3 independent hearing commissioners; the 1032 submissions were split 528 for the marine centre, 499 against, 5 neutral

Remuera, 14 Rangitoto Avenue & 19 Ara St, application by BeGroup NZ Ltd for retirement village in 3 wings of 1-3 storeys containing 27 independent living units, 68 aged-care suites, basement parking, on the former Rawhiti Bowling Club site: Robert Blakey to decide on notification and, if notified, to hear the application along with Pamela Peters, Rebecca Skidmore & local board member Graeme Easte (from Albert-Eden)

Waiheke Island, Sandy Bay, 92 Coromandel Rd, application for resource consent for a single-storey house straddling a wetland area: Barry Kaye to decide on notification and, if notified, to hear the application along with Bill Kapea

Te Atatu Peninsula, 543 Te Atatu Rd, former BP Oil (NZ) Ltd service station site, application by Vaco Investments (Te Atatu) Ltd (Antony Arnerich) to vary conditions of consent to allow 24/7 drive-through McDonald’s fast-food restaurant: Les Simmons to decide on notification and, if notified, to hear the application along with Ian Munro, Philip Brown & local board member Catherine Farmer (from Whau)

The list of duty commissioners includes 3 who are new to that role – Richard Blakey, Robert Scott & Dave Serjeant.

Council resolutions team manager Rob Andrews said the council reduced its pool of hearing commissioners from 65 to 49 a year ago and there was now a need to supplement the pool in certain skill areas.

Along with changing the faces on hearing panels, the council has produced a performance development framework for commissioners, including reviews of performance, supporting development and dealing with under-performance.

Earlier stories:
11 August 2014: Pencarrow enters upmarket retirement village development with Rawhiti site
25 May 2009: 8-storey Te Atatu building turned down
3 August 2008: Malaysian group plans 10-storey Te Atatu Peninsula development

Links:
Committee agenda, including item details
Online petition opposing Te Atatu 24/7 outlet

Attribution: Committee meeting.

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Updated: Strong yields at Bayleys’ Total Property auction, but also numerous no-bids

Published 17 April 2015, updated 22 April 2015
11 properties were sold under the hammer out of 25 offered at Bayleys’ Total Property commercial auction on Wednesday, and one property was sold prior. Another property, a development site in Avondale, has been sold post-auction.

The strength of yields was emphasised by the sale of a Dargaville property on a 6.6% yield. Yet there was also a high number of properties passed in without a bid being offered.

The sales included 3 of 6 outlets in the former Highland Park Shopping Centre cinema (above).

Isthmus east

Panmure

188 Queens Rd:
Outcome: passed in at $960,000
Agents: Mark Pittaway

Remuera

7 Patey St:
Outcome: passed in at $3 million
Agents: Mark Pittaway

Isthmus west

Avondale

Updated: 30-32 Rosebank Rd:
Features: 868m² elevated corner development site next to the Avondale train station – 2 industrial buildings and a bungalow totalling 322m² leased to 3 tenants, plans drawn up for a 32-apartment development
Rent: holding income of $44,416/year
Outcome: no bid at auction, sold later for $1.15 million
Agents: James Were & Scott Kirk

64 Shoreham St:
Features: 612m² residential 5-zoned site, 2 2-bedroom flats & 1-bedroom flat in brick & tile dwelling
Rent: $42,640/year gross
Outcome: sold for $1.166 million at a 3.5% gross yield
Agents: Quinn Ngo & Harry Cheng

The vacant site at 1 Exmouth St, Newton.

The vacant site at 1 Exmouth St, Newton.

Eden Terrace

1 Exmouth St:
Features: 655m² high profile corner, bare land site zoned mixed use, currently used for parking
Outcome: sold for $1.92 million at $2931m²
Agents: Owen Ding & James Chan

Mt Eden

349 Dominion Rd:
Outcome: no bid
Agents: Nigel McNeill & Leah La Hood

23 Edwin St:
Features: 245m² office/showroom unit plus 7 parking spaces in Zone 23 complex with 2 years remaining on 6-year lease
Rent: $87,160/year net + gst
Outcome: sold prior for $1.15 million at 7.6% yield
Agents: Clint Barber

Newton

10 South St:
Outcome: no bid
Agents: Paul Dixon & Greg Scott

North

Dargaville

94 Normanby St:
Features: new 200m² building on 759m² main-street site, 9 parking spaces, developed by Wallace Development Co Ltd, leased to Rabobank for 9 years from February 2015 plus 2 3-year rights of renewal
Rent: $58,550/year net + gst, with annual CPI + 1% reviews
Outcome: sold for $885,000 at a 6.6% yield
Agents: Ross Blomfield

Kaitaia

4-8 Dunn St:
Features: 1228m² Carters Hardware store on 4155m² industrial zoned site, leased to Carter Holt Harvey for 15 years from August 2007 plus 2 6-year rights of renewal
Rent: $140,000/year net + gst
Outcome: sold for $1.275 million at an 11% yield
Agents: Alan Broadbent

North-west

Henderson

91-93 Central Park Drive:
Outcome: passed in at $7.5 million
Agents: Laurie Bell & Grant Miller

Te Atatu South

276 Te Atatu Rd:
Features: 3298m² residential development site zoned living 1 (450m² per site subject to council approval) with potential for 6 townhouses and zoned terrace housing & apartments under the proposed unitary plan, currently has a single large dwelling with swimming pool in landscaped grounds
Outcome: sold for $1.78 million to buyer from mainland China at $534/m²
Agents: Quinn Ngo & James Chan

South

Botany

25 Bishop Dunn Place:
Outcome: no bid
Agents: Jamsheed Sidhwa & Luke Carran

Highland Park

20-22 Dunrobin Place, unit 2 (Coffee Club):
Features: 110m² unit in converted former cinema premises in Highland Park Shopping Centre occupied by Coffee Club on 8-year lease from March 2014 plus 8-year right of renewal
Rent: $52,500 net + gst/year, with fixed annual 3% increase
Outcome: sold for $972,000 at a 5.4% yield
Agents: Quinn Ngo, Sunil Bhana & Tony Chaudhary

Highland Park, unit 3 (Pita Pit):
Features: 82m² unit occupied by Pita Pit on 10-year lease from March 2014 plus 2 5-year rights of renewal
Rent: $32,000 net + gst/year, with annual CPI increase capped at 3%
Outcome: sold for $591,000 at a 5.4% yield
Agents: Quinn Ngo, Sunil Bhana & Tony Chaudhary

Highland Park, unit 4 (Anytime Fitness):
Outcome: no bid
Agents: Quinn Ngo & Geoff Wyatt

Highland Park, unit 5 (Tank Juice):
Features: 88m² unit occupied by Tank Juice on 8-year lease from June 2014 plus 2 6-year rights of renewal
Rent: $35,000 net + gst/year, with fixed annual 3% increase
Outcome: sold for $600,000 at a 5.8 % yield
Agents: Sunil Bhana & Geoff Wyatt

Highland Park, unit 6 (vacant):
Outcome: no bid
Agents: Quinn Ngo & Geoff Wyatt

Highland Park, unit 7 (Flow):
Outcome: passed in at vendor bid of $550,000
Agents: Sunil Bhana & Geoff Wyatt

Howick

19 Wellington St:
Outcome: no bid
Agents: Mark Pittaway & James Chan

Mangere East

48 Buckland Rd:
Features: 154.5m² purpose-built childcare centre licensed for 39 children, on 698m² main residential-zoned site, leased to Evolve Group 3 Ltd for 15 years from December 2014 plus 3 5-year rights of renewal
Rent: $77,500/year net + gst, with annual CPI reviews and to market every 3 years
Outcome: sold for $1.32 million at a 5.9% yield
Agents: Toni Robertson, Tony Chaudhary & James Chan

Papatoetoe

93 East Tamaki Rd:
Features: veterinary clinic located on main residential-zoned 872m² site, leased for 6 years from April 2013 with 3 6-year rights of renewal
Rent: $48,000/year net + gst
Outcome: sold for $860,000 at a 5.6% yield
Agents: Paul Dixon & Tony Chaudhary

7 Ryan Place, unit D:
Features: 240m² industrial unit, new 3-year lease to established tenant
Rent: $30,000/year net + gst
Outcome: sold for $380,000 at a 7.9% yield
Agents: Nick Bayley & Dave Stanley

Pukekohe

201-205 King St:
Outcome: no bid
Agents: Pyush Kumar & Peter Migounoff

Takanini

4 Graham Rd, unit E:
Outcome: no bid
Agents: Mike Marinkovich & Peter Migounoff

South of the Bombays – Waikato

Pokeno

3 Hitchen Rd:
Outcome: passed in at vendor bid of $950,000
Agents: Peter Migounoff & Shane Snijder

Attribution: Auction.

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Sales in Auckland, BOP & Wellington

A selection of sales around the North Island closes out Bayleys’ commercial transaction reports for the year.

They range from one in the Auckland cbd and another at Te Atatu, 2 in the Bay of Plenty, to 4 in Wellington.

In the Auckland cbd, a listed 8-storey building on Eden Crescent (pictured above) has been sold with vacant possession. It was originally the Hotel Cargen when it was built in the 1920s, was occupied by UEB Industries Ltd for a time in the 1980s and has more recently been used by language schools.

2 properties in the Ngauranga Gorge were sold on behalf of DNZ Property Fund Ltd for $5.3 million, 5.5% above book value. Settlement is scheduled for January.

CBD

Learning Quarter

8-10 Eden Crescent, Auckland Central:
Features: 463m² site, historic 8-level 2991m² building built as Hotel Cargen in 1920s, seismically upgraded to 70% new building standard, plans drawn up for conversion to character apartments
Outcome: sold with vacant possession for $4.5 million
Agent: Alan Haydock

North-west

Te Atatu Peninsula

60a Wharf Rd:
Features: 3392m² engineering workshop, warehouse & office building on 7615m² site, 65 parking spaces, about 40% site coverage, 10-year lease to Scott Package Handling Systems from October 2014, with 2 5-year rights of renewal
Rent: $293,800/year net + gst with annual CPI reviews, minimum increase of 1% & maximum of 3%
Outcome: sold for $4.1 million at a 7.2% yield
Agents: Sunil Bhana & Mike Houlker

South of the Bombays

Bay of Plenty

Rotorua

1237 Amohia St:
Features: 825m² 2-level cbd office building developed in late 1970s on 600m² site, split into 3 tenancies with Fuji Xerox occupying 145m² on 2-year lease, other 2 tenancies vacant
Rent: $30,400/year net + gst
Outcome: sold for $500,000
Agent: Mark Rendell

Tauranga

150 Seventeenth Avenue:
Features: 600m² 4-year-old office building on 1559m² site in business park opposite Tauranga Hospital, support office for national childcare education provider Footsteps Education Ltd, new 8-year lease from October 2014 & 2 3-year rights of renewal
Rent: $137,380/year net + gst, with 2-yearly CPI rent reviews
Outcome: sold for $2 million at a 6.86% yield
Agents: Lloyd Davidson & Mathew Gibbard

Wellington

Newtown

10 Constable St:
Features: 154m² character building with ground-floor legal tenant on 3-year lease from February
2014 and 3-bedroom apartment above, on 194m² site opposite library
Rent: $24,700/year net + gst from commercial tenancy & $26,000/year gross on 6-month residential tenancy
Outcome: sold for $530,000
Agents: Mark Walker

Ngauranga

13 Jarden Mile:
Features: 1182m² 2-level premises purpose built in 1998 for longstanding occupant on 968m² site; current 5-year lease to Armourguard’s parent company Evergreen International NZ Ltd runs until April 2017, with one 5-year right of renewal
Rent: $250,132/year net + gst
Outcome: sold for $2.9 million at an 8.62% yield
Agents: Fraser Press & Mark Hourigan

12 Tyers Rd:

Features: 1304m² milk distribution facility including a coolstore with new chiller plant & 2-level office & amenities block,  purpose built for Fonterra in 1999, on 2731m² site with 1000m² yard; 9-year lease to Fonterra Brands (NZ) Ltd from September 2014 with one 6-year right of renewal
Rent: $230,000/year net + gst, with 3-yearly rent reviews to CPI
Outcome: sold for $2.85 million at an 8.07% yield
Agents: James Higgie & Mark Hourigan

Petone

18-20 Gear St:
Features: Modern 512m² warehouse & office building on 577m² site zoned Petone mixed use, 2 road frontages, drive-through access, 5 parking spaces, occupied by Bodyworks Panel & Paint until June 2015 with no rights of renewal
Rent: $40,438/year net + gst, estimated potential net income of $48,138/year
Outcome: sold for $600,000 at a 6.74% yield
Agents: Graeme Diamond & Paul Cudby

Attribution: Agency releases.

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New development proposed for ex-service station

A former BP service station site on the Te Atatu Peninsula, proposed for development 6 years ago, has been sold to a local developer.

The site has resource consent for ground-floor retail & 36 apartments above. A Malaysian group, Duopharma Pacific Ltd, sought consent in 2008 to develop 61 apartments & 2 retail units in a 10-storey building on 1117m² of the site.

North-west

Te Atatu Peninsula

543 Te Atatu Rd:
Features: 3052m², decontaminated ex-petro station site
Outcome: sold to a local retail developer for $3.5 million at $1146/m²
Agents: David Palmer

Attribution: Agent release.

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2 warehouses & childcare centre sell at Colliers auction

2 warehouses and a childcare centre were sold under the hammer at Colliers International’s auction yesterday.

The auction was reduced to 5 properties from a starting list of 9, after 4 were withdrawn or their auction postponed.

CBD

Aotea Quarter

209 Federal St:
Outcome: auction postponed until Wednesday 12 November
Agent: Oscar Kuang

Isthmus east

Mt Wellington

8-10 & 12 Hannigan Drive:
Features: 6821m² site on 2 titles, 2804m² buildings, 1770m² warehouse & office, 1034m² canopy
Outcome: sold vacant for $3,752,500 at $550/m² land, $2120/m² office & warehouse
Agents: Paul Higgins & Dwayne Warby

18 Hannigan Drive:
Rent: $213,999/year + gst, 5 tenancies
Outcome: withdrawn from auction
Agents: Andrew Hooper & Ash Vincent

Isthmus west

Sandringham

37 Leslie Avenue:
Features: 1660m² site, 320m² office including mezzanine 150m², 600m² clearspan warehouse, 530m² basement, 580m² side yard available for parking or development, in light industry Zone under proposed unitary plan
Rent: $156,000/year holding income from 2 tenants, one with 12-month demolition/redevelopment clause, the basement tenant on monthly term
Outcome: sold for $2.14 million at $1289/m² of land
Agents: Jonathan Lynch & Peter Kermode

North-east

Albany

10 Canaveral Drive, unit 5A:
Features: 115m² commercial unit, 4 parking spaces
Rent: $31,180/year net, 2-year lease
Outcome: passed in at $320,000
Agents: Janet Marshall & Nick Recordon

10 Canaveral Drive, unit 5C:
Features: 115m², 4 parking spaces
Rent: vacant
Outcome: withdrawn from auction
Agents: Janet Marshall & Nick Recordon

10 Canaveral Drive, unit 5D:
Features: 92m², 4 parking spaces
Rent: $25,600/year net, 2 year lease
Outcome: passed in at $250,000
Agents: Janet Marshall & Nick Recordon

Silverdale

23-25 Wainui Rd:
Features: m²,
Rent: $53,870/year net from new 4-year lease, 100% IEP seismic rating
Outcome: auction postponed until Thursday 16 October
Agents: Euan Stratton & Deborah Dowling

North-west

Te Atatu

2 Waipani Rd:
Features: 2046m² site with 3 road frontages, 746m² building including decks, zoned residential, to be occupied by Kid Country Te Atatu Ltd from next month
Rent: $230,000/year net + gst + opex, initial lease term 15 years, 2 10-year rights of renewal
Outcome: sold for $3.355 million at a 6.86% yield, $1640/m² land
Agents: Peter Kermode & Shoneet Chand

Attribution: Auction.

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