Archive | Canterbury

Wigram sale, 6 commercial leases in Auckland & Canterbury

Knight Frank agents have reported a Wigram warehouse sale in Canterbury and 6 commercial leases in Auckland & Christchurch.

Sale

South Island – Canterbury

Wigram

22 Sonter Rd, unit 1:
Features: 470m² warehouse, 180m² office/showroom
Outcome: sold for $1.45 million at a 5.4% yield (market yield 6.5%)
Agent: Craig Edwards

Leases

South

Favona

70 Favona Rd:
Features: 1500m² industrial yard
Agent: Scott Worrall

Papakura

14B Vernon St:
Features: 250m² warehouse unit
Rent: $34,000/year + gst + opex 
Agent: Josh Franklin

South Island – Canterbury

Burnside

41 Sir William Pickering Drive, unit 5:
Features: 74m² ground-floor office unit, 3 parking spaces
Rent: $21,990/year net + gst + opex      
Agent: Campbell Taylor

CBD

48 Fitzgerald Avenue, unit 11:
Features: 347m² warehouse, 246m² showroom, 8 parking spaces
Rent: $82,000/year net + gst + opex      

Agents: Sam Stone & Elliot Clayton

68 Fitzgerald Avenue, part level 1:
Features: 159m² first-floor office tenancy, 4 parking spaces
Rent: $47,909/year net + gst + opex      
Outcome:
Agent: Tom Lax

Innovation Precinct, 181 High St, unit D3:
Features: 99² ground-floor retail tenancy
Rent: $49,005/year net + gst + opex
Agent: Tom Lax

Attribution: Agency release.

Continue Reading

2 NZ Post properties sell in Christchurch

2 NZ Post properties were sold in Christchurch on Friday to start Bayleys’ sixth Total Property commercial auction series for the year. An Ashburton property was passed in.

The auction series comes to Auckland today, with 10 properties on the auction list.

South Island

Canterbury

Ashburton

390-400 East St:
Features: 994m² corner site in Ashburton’s main street, 1329m² building, 3-year ground-floor lease from settlement to NZ Post & Kiwibank, 2 upstairs monthly tenancies, 396m² of vacant space
Rent: $56,052/year net + gst
Outcome: passed in at $425,000
Agents: Blair Young & Mitchell Wallace

Christchurch

Bishopdale

31 Bishopdale Court (pictured above):
Features: 278m² site, 309m² refurbished & strengthened building; 6-year lease until October 2022, with 2 3-year rights of renewal to arts supplies, giftware & book retailer Paper Tree, which also has NZ Post & Kiwibank services contract that includes 534 postboxes
Rent: $62,000 /year net + gst
Outcome: sold for $1.1 million at a 5.64% yield
Agents: Blair Young & Mitchell Wallace

Woolston

713 Ferry Rd:
Features: 566m² corner site adjacent to recently opened New World supermarket, 320m² standalone building – 201m² Discount Dairy tenancy which holds NZ Post services contract with 590 postboxes on lease until June 2024, and 119m² occupied by laundromat with a lease until February 2023
Rent: $60,832/year net + gst
Outcome: sold for $871,000 at 6.98% yield
Agents: Blair Young & Mitchell Wallace

Attribution: Agency release.

Continue Reading

Cotterill sees opportunity for NPT as tenants quit

Image above: The AA Centre on the corner of Albert & Victoria Sts in downtown Auckland, between the bungy jumps of the Royal International site & Sky Tower, and with works underway at the corner for the city rail link tunnel & station.

Listed property investor NPT Ltd has tenants leaving 2 of its 5 properties – one of them quitting 6 office floors – and the new board sees opportunity.

Bruce Cotterill.

New chair Bruce Cotterill was dying to tell shareholders about impending investment activity at the annual meeting in Auckland on Friday, but didn’t quite have everything in place to make the revelations.

“While we aren’t in a position to provide any detail at this time, we are working on a number of initiatives that we expect will deliver better returns to our shareholders and would set us on a clear path to growth. Although it is early days in our tenure as directors, this board has made rapid progress and shareholders may expect an update in the coming weeks as some of our initiatives come to fruition,” he said.

NPT has had a chequered history since its inception as the National Property Trust in 1994, but one thing about it hasn’t changed: it started small and has remained so, getting its portfolio over $200 million in value for a while but now down at $174 million.

Its change in prospects began last September when Augusta Capital Ltd bought 9.26% of its shares from the Accident Compensation Corp, then proceeded to make an offer for its management contract. In October, Augusta said it also wanted NPT to buy a portfolio of 3 unidentified properties valued at $329 million, and it wanted to help NPT grow its portfolio to improve returns.

This latter was odd, because Augusta had whittled down its own portfolio in favour of managing syndicates. NPT’s board baulked, and so began a struggle for control that cost NPT $2 million.

The loser, at a special shareholder meeting in April, was Kiwi Property Group Ltd, which also wanted NPT to buy properties – 2 assets valued at $230 million, the Majestic Centre in Wellington & North City Centre at Porirua, now on the market through an expressions of interest process.

Augusta won the fight for control after lifting its holding to 18.85% and the total  vote against Kiwi’s proposal was 54.85%.

Mr Cotterill was installed as independent chair; a recently appointed member of the old board, Carol Campbell, remained as an independent (and had her position confirmed at Friday’s meeting); and Augusta’s new chair, Paul Duffy, and another independent, Allen Bollard, were elected.

AA moving to Sale St

Mr Cotterill told shareholders AA Insurance had recently informed the company it intended to relocate to a new office building under construction by Mansons on Sale St in February 2018, although its lease on its 6 floors in the AA Centre – right above the Aotea station being constructed beneath its Albert-Victoria St windows – runs until June 2019.

Said Mr Cotterill: “This departure will provide us with a further opportunity for refurbishment & repositioning of the building in the Auckland City office leasing market. Leasing inquiry for the floors that are to become vacant is very strong and we expect to be able to lease them relatively quickly.”

He said NPT had been working on leasing the AA space for a couple of months: “We don’t have signatures on paper but we do have good inquiry.”

Print Place – repositioning or disposal?

In Christchurch, NPT’s property at 17 Print Place, Middleton, recently lost one of its 3 tenants and will lose another in December. On this, Mr Cotterill told shareholders the vacancy & shortening weighted average lease term had resulted in the value of the property easing. But again Mr Cotterill saw opportunity: “This vacancy may provide us with an opportunity to reposition the property.”

Mr Duffy said it was over-rented and had too much office space relative to its warehousing.

One shareholder questioned the board about NPT being an absentee landlord, but Mr Cotterill responded: “We agree with you, and we’ve appointed Colliers [as manager of its Christchurch properties]. They haven’t got any tenants yet because we only agreed to appoint them this morning.”

Mr Cotterill agreed with another shareholder that selling Print Place was also an option. He said the new board had 2 strategies to focus on – growing the portfolio, and repositioning what it already owned.

He cautioned that growth wouldn’t be easy: “We’re trying to rebuild when prices are at their peak. That’s not the easiest thing to do.”

He said the board recognised that “mum & dad” shareholders relied heavily on dividends and the board intended to maintain dividends at their present level. On Friday afternoon the board announced a 0.9c/share first-quarter cash dividend, carrying 0.1544c/share of imputation credits, and gave full-year guidance that total dividends would be at least the same as last year, 3.6c/share.

Again, Mr Cotterill presented the optimistic outlook: “This represents a conservative approach to 2018 financial year distributable profit while the board considers a number of options before it for NPT’s future direction. A further update can be expected on the board’s plans for NPT in the coming weeks.”

At the moment, NPT’s management remains internal – Kiwi’s proposal to buy it was defeated in April and Augusta’s proposal wasn’t put to that meeting, but Mr Cotterill said the outcome of the April meeting had raised interest in taking over the contract. One party had turned its talks into a proposal and the board was discussing the possibility with another: “There’s nothing concrete,” he said.

Earlier stories:
2 June 2017: NPT profit eaten up in battle over its future
26 April 2017: Cotterill takes chair at NPT
21 April 2017: Augusta wins fight for NPT
7 April 2017: Augusta lifts stake in fight for NPT
31 March 2017: An unlikely twist could still derail NPT’s Kiwi deal
31 October 2016: Fourth era for NPT a hard option to combat
27 September 2016: Augusta buys 9% of NPT

Attribution: Annual meeting.

Continue Reading

11 South Island commercial sales

Bayleys agents have sold 11 commercial properties around the South Island – in Nelson, Canterbury & South Canterbury and Otago – including the Baaa Bar (pictured), reputed to be the last student pub in north Dunedin still standing.

South Island

Canterbury

Middleton

5 Venture Place:
Features: 4768m² site, 2230m² 40m-wide clearspan warehouse, 460m² of offices, 46 offstreet parking spaces
Outcome: sold vacant for $4.05 million
Agents: Stewart White, Alex White & Nick O’Styke

Rangiora

8-10 John Rd:
Features: 1305m² site, 495m² newly constructed childcare centre; new 10-year lease plus 2 6-year rights of renewal
Outcome: sold for $2.625 million at a 6.24% yield
Agents: Stewart White, Chris Frank & Tony Chaudhary

Shirley

204 Hills Rd:
Features: 4370m² corner site, 1228m² suburban shopping centre, 9 tenants, 46 parking spaces
Rent: $371,772/year net + gst
Outcome: sold for $5.33 million at a 6.97% yield
Agents: Blair Young & Mitchell Wallace

Sockburn

10 William Lewis Drive:
Features: 2425m² vacant industrial site in central business park
Outcome: sold for $815,000 at $336/m²
Agent: Nick O’Styke

Wigram

9 Kilronan Place:
Features: 1935m² industrial site, 1014m² warehouse/workshop, 5.5m at knee with 5-tonne crane, 47m² office
Outcome: sold vacant for $1.35 million
Agents: Stewart White, Nick O’Styke & Alex White

12C Symes Rd:
Features: 890m² industrial unit, 3.5 tonne gantry crane, 13 parking spaces in small business park; seismically strengthened to 67% of new building standard; new 4-year lease
Rent: $95,000/year net + gst
Outcome: sold for $1.307 million at a 7.27% yield
Agent: Nick O’Styke

Woolston

Kennaway Rd, lot 14:
Features: new 1000m² warehouse, 200m² of offices in Portlink Industrial Park
Outcome: sold to an owner-occupier for $2.3 million in a design, build & purchase agreement
Agents: Greg Mann & Garry Ottmann

South Canterbury

Lake Tekapo

11 & 13 Sealy St:
Features: 8094m² vacant site in 2 titles, zoned residential 2 but suitable for commercial visitor accommodation
Outcome: sold for $3.5 million at $432/m²
Agent: Tracy Chen

Nelson

The Wood, 87 Grove St:
Features: 749m2  site occupied by The Bush Inn, comprising 16 studio units plus living areas, laundry & kitchen; building completely redeveloped & 100% occupied, manager’s apartment upstairs
Outcome: sold as freehold going concern for $1.25 million
Agent: Gill Ireland

Tahunanui

24 Golf Rd:
Features: 1487m² site, tenanted 13-unit 610m² motel, A grade seismic rating, standalone 3-bedroom manager’s accommodation
Outcome: sold for $1.23 million at a 6.5% yield
Agent: Gill Ireland

Otago

Dunedin

746 Great King St:
Features: 403m² site in university area & on State Highway 1 corner, 390m² bar/restaurant, leased to Baaa Sports Bar & Grill for 10 years from June 2017, 2 5-year rights of renewal
Rent: $90,000/year net + gst
Outcome: sold for $1.2 million at a 7.5% yield
Agent: Robin Hyndman

Attribution: Agency release.

Continue Reading

Sale & 4 leases for Knight Frank

Knight Frank has sold an East Tamaki building and secured 4 leases, one in St Johns and the other 3 in Christchurch.

Sale

South

East Tamaki

12-16 Harris Rd:
Features: 4186m² site, 2195m² industrial building
Outcome: sold for $4.75 million with a 2-year leaseback & a yield of 5.6%
Agent: Josh Franklin

Leases

Isthmus east

St Johns

24 Morrin Rd, unit F:
Features: 185m² warehouse, 46m² first-floor office, 35m² ground-floor showroom
Rent: not disclosed
Agents: Scott Worrall & Damon Wyllie

South Island – Canterbury

Christchurch

185 Manchester St, unit 3:
Features: 26m², first-floor office suite
Rent: $16,900/year + gst + opex
Agent: Tom Lax

Middleton

11 Midas Place, unit A:
Features: 135m² warehouse, 30m² showroom/office, 5 parking spaces
Rent: $22,000/year + gst + opex
Agents: Myles Addington & Elliot Clayton

Sydenham

8-12 Battersea St:
Features: 817m² warehouse, 100m² showroom/office, 10 parking spaces
Rent: $82,000/year + gst + opex
Agents: Myles Addington & Elliot Clayton

Attribution: Agency release.

Continue Reading

Christchurch convention centre tender introduces Cimic to major NZ projects

When the Government awarded the $240 million contract to complete the design & construction of the Christchurch Convention & Exhibition Centre to CPB Contractors Pty Ltd last Thursday, few people outside the industry would have been much the wiser. CPB?

Except that, whoever this contractor was, it needed close watching, as the Minister supporting Christchurch Regeneration, Nicky Wagner, confirmed in her release: “CPB has committed to completing construction in the first quarter of 2020 and the Government will be closely monitoring its progress,” she said.

That’s not the kind of public warning you issue to someone you’ve supposedly had sufficient confidence in to award them a very large contract – unless the recent performance of New Zealand’s biggest contractor, The Fletcher Construction Co Ltd, is making you extra-jittery about every contractor. [Fletcher Building Ltd, Fletcher Construction’s parent, reports its annual result Wednesday morning.]

Ms Wagner said work would start soon on what would be “a world-class boutique facility, capable of hosting international conferences as well as community meetings, balls, galas & weddings.”

It will offer options of:

  • an auditorium for 1400 delegates (divisible into 2 700-person auditoriums)
  • a 1250-person banquet hall
  • 14 interconnected meeting rooms for up to 1400 people
  • 4400m² of pre-function spaces for up to 1400 people, and
  • a 3600m² multi-use exhibition hall for 200 exhibition stalls.

“The convention centre will be a cornerstone of the revitalised central city and help bring domestic & international visitors back to the central business district.

“The direct economic benefit of the convention centre is estimated to be more than $320 million in the first 8 years, and $57 million every year after that.

“It’s also expected to increase private sector investment, open up business networks & opportunities and create new jobs.”

The contract was let by Otakaro Ltd, a Government-owned company whose job is to deliver Crown-led anchor projects in central Christchurch and divest the balance of Crown land. The company bears the Ngai Tuahuriri name for the Avon River that runs through Christchurch.

Who is CPB?

As for the main works contractor, CPB changed its name from Leighton last year. The New Zealand company is a subsidiary of Cimic Group Ltd, which is 73% owned by Hochtief AG of Germany, which in turn is now 71.8% owned by ACS Group SA of Spain. Those stakes make the Spanish group 52.2% owner of Cimic.

All are big names in construction internationally, with current heavy focus on major infrastructure projects, especially through public-private partnerships.

Other international contractors have looked at New Zealand but uncertainty over the future order book has been a deterrent.

Attitude talks inclusion

Cimic Group chief executive Adolfo Valderas.

For the Christchurch job, Cimic Group chief executive Adolfo Valderas said: “Cimic & CPB Contractors’ market-leading & cost-effective capabilities in delivering major commercial & social infrastructure position us strongly for projects such as the Christchurch Convention & Exhibition Centre.

“Cimic is committed to delivering this project as part of the rebuilding of Christchurch. The project will deliver a vibrant & world-class piece of infrastructure supporting sustained economic & cultural benefits for the Christchurch community.”

CPB Contractors managing director Román Garrido said: “By utilising our international expertise & local project experience in Christchurch, our team consistently delivers value-for-money design & construction methodologies that ensure quality outcomes.

“We are focused on providing opportunities for local businesses, a socially inclusive procurement strategy to broaden community benefits, and enhancing local workforce capabilities to the benefit of future building & infrastructure projects in the region.”

Business model transformed

Cimic reported a strong first-half result last month and said it would lead to improved outcomes. The company lifted first-half revenue by 28% to $A6.3 billion, net profit after tax by 22% to $A323 million and operating cashflows up $A523 million. It has $A35.2 billion of work in hand.

ACS Group executive chair Marcelino Fernández Verdes.

Group executive chair Marcelino Fernández Verdes said: “The compelling numbers we reported today are a testament, not only to the transformation of our business model which we commenced in 2014, but also to the ongoing drive of our people to improve, innovate & grow.

“Through continually evolving how we deliver projects, we are achieving favourable outcomes for clients, which improves the position of our group to win further work. We have also substantially increased our net cash position, which allows us to better reward shareholders and more efficiently allocate capital.”

And group chief executive Adolfo Valderas added: “By securing new work of $8.9 billion during the period, we have brought work in hand to $35.2 billion – a level equivalent to more than 2 years’ revenue.

“We are in an ideal position to build on our strategy of providing clients with end-to-end solutions – from financing to engineering, construction, mining, operations & maintenance. Doing so will further diversify our income streams and add more recurring revenue through the expansion of our services business with the successful integration of UGL.”

New projects

Among its early scores in New Zealand is the design, construction & financing of a New Zealand schools public-private partnership – a $103 million project for CPB Contractors & Pacific Partnerships Pty Ltd. Cimic is also tendering for major Sydney rail & road projects and the deep tunnel sewerage system in Singapore.

In its half-year report, Cimic said it had won one of Australia’s biggest public infrastructure projects: “CPB Contractors is in charge of stage 2 of the Metro expansion in Sydney. Cimic’s share of the overall contract value of $NZ3 billion is 45%. The trust our customers place in us with major infrastructure projects was yet again confirmed by CPB Contractors’ recent selection as the preferred proponent to deliver a part of the Melbourne Metro tunnel, Victoria’s largest-ever public infrastructure project.”

Links:
Cimic Group
ACS Group
Hochtief
Otakaro

Attribution: Company & ministerial release, group websites.

Continue Reading

Sale & 4 leases in Christchurch

Knight Frank agents in Christchurch have sold one office unit in a new Addington development on Lowe St, and have signed 4 leases.

South Island – Christchurch

Sale

Addington

36 Lowe St, unit 5:
Features: 78m² new ground-floor office unit, 2 parking spaces, one unit still available
Outcome: sold for $400,000 at a 7.5% yield
Agent: Tom Lax

Leases

Addington

22 Clarence St:
Features: 2884m² site – 1354m² warehouse, 219m² office & amenities, 27 parking spaces
Rent: $140,000/year net + gst + opex    
Agent: Sam Stone

Rangiora

10 Kingsford Smith Rd:
Features: 1200m² industrial yard, fully fenced
Rent: $13,800/year net + gst + opex
Agent: Craig Edwards

Riccarton

295 Blenheim Rd, unit 3B:
Features: 146m², first-floor self-contained office, 6 parking spaces
Rent: $32,000/year net + gst + opex
Agent: Sam Stone

Richmond

325 Stanmore Rd, unit 3:
Features: 65m² hair salon unit, parking space
Rent: $20,000/year net + gst + opex      
Agent: Campbell Taylor

Attribution: Agency release.

Continue Reading

One Penrose lease & 3 in Christchurch

Knight Frank agents have signed a small industrial lease in Penrose and 3 on warehouses around Christchurch.

Leases

Isthmus east

Penrose

29 Station Rd:
Features: 376m² industrial building, leased to a local tenant
Rent: undisclosed    
Agents: Scott Worrall & Damon Wyllie

South Island – Canterbury

Middleton

317 Blenheim Rd, units 1 & 2:
Features: 2 180m² warehouse units with offices
Rent: $21,000/year each, net + gst + opex
Agents: Murray Madgwick & Greg Bevin

Phillipstown

413 Tuam St:
Features: 526m² showroom/warehouse, 7 parking spaces
Rent: $50,000/year net + gst + opex      
Agent: Sam Stone

Rangiora

346 Flaxton Rd, unit 6:
Features: 265m² high stud warehouse, 35m² showroom/office
Rent: $45,000/year net + gst       
Agent: Craig Edwards

Attribution: Agency release.

Continue Reading

Summerset buys third Christchurch site

Summerset Group Holdings Ltd said today it had bought a 9.5ha property in the suburb of Avonhead for its third Christchurch retirement village & fourth dementia care centre.

Chief executive Julian Cook said the company intended to build 240 homes on the Hawthornden Rd property, near the Russley golfcourse & other recreational areas.

It will have 2- & 3-bedroom villas, apartments & serviced apartments, rest-home & hospital care and a memory care centre – a new dementia care concept in New Zealand offering residents living with dementia their own one-bedroom apartment in a secure environment.

Mr Cook said: “We are the first in New Zealand to launch this style of apartment living for those living with dementia. Our first memory care centre opened in Levin last November and has been warmly received by residents & their families.

“We are building 2 further memory care centres in Rototuna (Hamilton) & Casebrook (Christchurch). These centres provide residents with the dignity & respect of having their own home within a secure centre, which is purpose-designed for their needs. We will bring this latest thinking in memory care centres to our Avonhead development.”

Mr Cook said Summerset’s first Christchurch village, at Wigram, was one of its fastest selling: “We are working on the final villa stages now and these will be complete next year. This will mark a 3-year selldown for the village. We are also seeing strong inquiry for our Casebrook village, currently under construction.”

Summerset expects to build 450 retirement units this year. Avonhead takes its greenfield sites to 7. The others are Casebrook, Richmond (Nelson), Rototuna (Hamilton), St Johns & Parnell (Auckland) & Lower Hutt.

Attribution: Company release.

Continue Reading

Christchurch leases signed

Knight Frank agents have signed tenants to 3 new office & warehouse leases around Christchurch.

Leases

South Island – Canterbury

Burnside

49 Sir William Pickering Drive, unit 3:
Features: 100m² first-floor office, 4 parking spaces
Rent: $28,310/year net + gst + opex
Agents: Tom Lax & Campbell Taylor

Rolleston

35 Illinois Drive, unit 10:
Features: 113m² warehouse unit with small office
Rent: $15,500/year net + gst + opex
Agent: Myles Addington

Wigram

22 Sonter Place, unit 1:
Features: 470m² warehouse – 180m² office/showroom, parking
Rent: $78,000/year net + gst + opex
Agent: Craig Edwards

Attribution: Agency release.

Continue Reading
WordPress Appliance - Powered by TurnKey Linux