Archive | South of Bombays

6 sales & 7 leases for Bayleys in Manawatu & Wellington

Bayleys offices in the lower North Island, but primarily in the Wellington region, have reported 6 sales & 7 leases of commercial space.

Image above: 57 Kiln St, Silverstream.

South of the Bombays


Palmerston North

43 Alderson Drive:
Features: 7552m² site, 1504m² industrial building used as a cold storage facility by national tenant Big Chill on a 12-year lease from 2013 with annual CPI increases; includes 1692m² of adjoining development land
Rent: $369,937/year net + gst
Outcome: sold for $5.4 million at a 6.85% yield
Agent: Fraser Press

328-330 Broadway:
Features:1356m² cbd site, 2-level 920m² commercial building, 7 tenants; 3 ground-floor retail tenants including TAB and offices above, on 2- to 3-year leases
Rent: $149,100/year net + gst
Outcome: sold for $1.8 million at an 8.3% yield
Agents: Karl Cameron, Lewis Townshend & Bede Blatchford



138 The Terrace:
Features: 605m² site, 9-level 3000m² office building, 7 tenants including Kiwibank, Chen Palmer & QE2 National Trust, on varying lease expiries through until 2023
Rent: $679,083/year net + gst
Outcome: sold for $7.55 million at an 8.99% yield
Agent: Mark Sherlock

Lower Hutt – Wingate

15 Eastern Hutt Rd, Wingate.

15 Eastern Hutt Rd:
Features: 4108m² site – 1438m² yard, 2670m² warehouse building; purpose-built distribution centre for Harvey Norman which has a 5-year lease from November 2016, with 4 5-year rights of renewal
Rent: $264,230/year net + gst
Outcome: sold for $3.5 million at a 7.55% yield
Agents: Mark Hourigan & Fraser Press


35 Te Roto Drive:
Features: 1.0865ha corner site with parking for over 100 cars & 3616m² data centre; Unisys NZ Ltd has occupied the site for 17 years and signed a new 5-year lease in October 2016, with 3 3-year rights of renewal
Rent: $457,000/year net + gst
Outcome: sold for $5.71 million at an 8% yield
Agents: Mark Sherlock & Stephen Lange

Upper Hutt – Silverstream

57 Kiln St:
Features: 4.0369ha site 167 parking spaces, 23,481m² warehouse & office building developed in the 1980s as Foodstuffs (Wellington) Ltd’s head office & distribution centre; 12,228m² of high stud, clearspan, drive-through warehousing, 5420m² of lower stud warehousing & 5733m² of offices partly refurbished in 2012
Outcome: sold by Foodstuffs to another owner-occupier for $10 million
Agents: Richard Faisandier, Mark Hourigan & Fraser Press




102-122 Lambton Quay, level 8:
Features: 379m² of B grade office space, one-year lease term
Rent: $130,165/year + gst at $350/m²
Agent: Jim Wana


6 Hurring Place, unit 2a:
Features: 1680m² industrial building with office accommodation over 2 levels
Rent: $273,030/year net + gst
Agent: John Pritchard

Te Aro

3 Market Lane
Features: Lease assignment of 1960m² of office space on 3 levels by Xero to co-working business BizDojo encompassing just over 3 years on the initial lease term plus further rights of renewal until 2027 as well as naming rights; Xero will relocate this year from 3 buildings to become anchor tenant in the nearby former Manthel Motors heritage building being redeveloped by The Wellington Co Ltd
Rent: Undisclosed
Agents: Luke Frecklington & Luke Kershaw

82 Tory St:
Features: 250m² of restaurant space, 6-year lease term
Rent: $120,000/year + gst at $350/m²
Agent: Luke Frecklington

Lower Hutt

531 High St:
Features: 3569m² lowrise office building, 75 parking spaces, leased for 6-year term
Rent: $856,080/year + gst at $240/m²
Agent: Matt Gibbs


4 Glover St:
Features: 2500m² industrial building, 7m high warehouse with multiple entries, offices, 15 parking spaces
Rent: $330,000/year + gst
Agent: John Pritchard

Upper Hutt

20 Somme Rd:
Features: 1000m², 2 floors of office & lab space with modern fitout; 12-year lease term begins on 1 October
Rent: $212,220/year + gst
Agent: Matt Gibbs

Attribution: Agency release.

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H&M to open at Queensgate

Expanding Swedish fashion retailer H&M (H&M Hennes & Mauritz AB) will open its first Wellington store at the Queensgate shopping centre in Lower Hutt this year.

Centre manager Stride Property Group’s shopping centres general manager, Roy Stansfield, said on Friday the announcement marked an important milestone in a large project, which had been a long time in the works: “We’re incredibly excited that a world-renowned brand like H&M has chosen Queensgate as the location for its first Wellington store. It’s testament to the standard of the centre & the opportunities in the region as a whole. Customers & retailers alike have been curious about the works going on in the centre as we prepare for H&M’s opening, so we’re very happy to be able to finally confirm who this new tenant is.”

Stride hasn’t confirmed the store’s opening date yet.

The Diversified NZ Property Trust, which Stride manages, bought the former Westfield mall from Scentre Group (NZ) Ltd last August. Part of it was closed after the Kaikoura earthquake in November and a portion of the carpark & its cinema complex were demolished. After a partial reopening, the centre was fully reopened in April.

H&M has a big international expansion programme underway, with 500 openings completed or planned this year.

Attribution: Company release.

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NZL to move Mt Maunganui operations to Tauriko

Freight & logistics company NZL Group Ltd has signed to move its Mt Maunganui operations to a $20 million purpose-built facility at the Tauriko Business Estate, 10km from the port, between state highway 29 over the Kaimais to the Waikato and the highway 36 bypass to Rotorua.

Colliers industrial leasing specialist Rob Schoeser said NZL would move to a high-tech 17,000m² warehouse with a new head office on Whango Place, Tauriko, scheduled for completion in mid-2018.

NZL occupies a site at Mt Maunganui owned by businessman & former MP Bob Clarkson, who will develop the new facility. NZL has signed a 15-year lease with rights of renewals.

Mr Schoeser said the supply of land around NZL’s Mt Maunganui headquarters was limited, and Tauriko was the only area in Tauranga with enough land for such a large development.

Tauriko Business Estate is a 255ha development site, 9.9km from the port of Tauranga.

New Plymouth-based Transport Investments Ltd bought NZL Group a month ago from Ken Harris, who led a management buyout of the group from P&O Australia Ports Pty Ltd in 2006.

Attribution: Agency release, company documents.

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4 sales & 7 leases in latest Bayleys results

Bayleys agents have completed 4 commercial sales on Queen St, in the Heritage Auckland hotel building, at Rosedale and in Petone, and 7 leases in Dairy Flat, Rosedale, Silverdale & the Wellington cbd.

Image above: The former Farmers’ Grand Tearoom in the Heritage Auckland hotel, bought for conversion to a penthouse apartment.



Queen St

155 Queen St, units 11A, B & C:
Features: 631m² office unit in 3 titles, 2 parking spaces on separate titles, occupied by NZ Institute of Studies, longer-term residential development potential
Rent: $150,000/year net + gst
Outcome: sold for $1.9 million at a 7.89% yield
Agents: Anna Radkevich & Ranjan Unka

Victoria Quarter

Heritage Auckland, 35 Hobson St:
Features: 539m² on the top floor of the Heritage Auckland Hotel, formerly the Farmers department store’s Grand Tearoom, has operated as a function centre since hotel conversion in the late 1990s; the hotel has indicated it won’t be renewing the 20-year lease expiring in October next year; high stud ornate ceiling, 2 external decks with harbour & city views plus 4 parking spaces
Rent $200,782/year net + gst
Outcome: sold for $2.5 million at an 8.03% yield or $4638/m², buyer has indicated intention to convert to penthouse apartment
Agent: Matt Lee & James Chan



14 Vega Place, unit C:
Features: 354m² industrial unit, 8 parking spaces, tenant Adrenalin Publishing Ltd in occupation for 16 years and has renewed for a further 4 years from 1 July
Rent $62,420/year net + gst
Outcome: sold for $1.18 million at a 5.29% yield
Agents: Ashton Geisler, Laurie Burt & Mike Adams

South of the Bombays


2 Jackson St:
Features: 2010m² site, 1500m² store occupied by Kathmandu for 15 years
Rent: $243,000/year net + gst
Outcome: sold for $4.1 million at a 5.92% yield
Agent: Richard Faisandier



Dairy Flat

17 Kahikatea Flats Rd, units C1 & C2:
Features: 280.8m² building area – warehouse 150m², office 90m², other area 40.8m², yard 3000m², no parking spaces
Rent: leased in June for $111,450, premises rental $396.90/m²
Agent: Rosemary Wakeman


Part 1-3 Parkhead Place:
Features: 581m² industrial unit – warehouse 411m², office 137m², other area 33m², 8 parking spaces
Rent: leased in June for $80,000/year net + gst, premises rental $137.69/m² (no separate charge for parking)
Agent: Laurie Burt


19 Foundry Rd, unit A:
Features: 142m² industrial unit – warehouse 92m², office 50m², 2 parking spaces
Rent: leased in June for $25,000/year net + gst, premises rental $176.05/m² (no separate charge for parking)
Agent: Rosemary Wakeman

150 Foundry Rd:
Features: 225m² industrial unit – warehouse 150m², office 75m², 4 parking spaces
Rent: leased in June for $32,500/year net + gst, premises rental $144.44/m² (no separate charge for parking)
Agent: Rosemary Wakeman

8 Peters Way:
Features: 1356.6m² office & warehouse – warehouse 976m², office 205m², showroom 175.6m² 21 parking spaces
Rent: leased in June for $195,000/year net + gst, premises rental $143.74/m² (no separate charge for parking)
Agent: Rosemary Wakeman

South of the Bombays

Wellington cbd

20 Customhouse Quay, part level 12:
Features: 349.4m² of A grade office space leased for 7 years
Rent: $242,246/year + gst
Agents: Luke Kershaw & Luke Frecklington

20 Customhouse Quay, part level 12:
Features: 225m² of A grade office space leased for 9 years
Rent: $156,025/year + gst
Agents: Luke Kershaw & Luke Frecklington

Attribution: Agency release.

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Argosy sells Napier warehouse

Argosy Property Ltd said on Monday it had sold the mostly vacant property at 1 Pandora Rd in Napier to an owner-occupier for $7.7 million.

Chief executive Peter Mence said this was a premium to the current book value of $7.5 million. Settlement was expected in August.

Mr Mence said the property had been partially occupied on monthly tenancies, yielding only a 1.2% return. The sale was in accordance with Argosy’s strategy of divesting non-core properties.

The medium-stud warehouse has a net lettable area of 18,269m². Fonterra Group was using part of it as a milk powder distribution facility.

Attribution: Company release.

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Meridian cuts space but signs new Customhouse Quay lease

Meridian Energy Ltd will cut the office space it leases at 33 Customhouse Quay, Wellington, by a third from September 2019, but has agreed to a new long-term lease on the balance.

Meridian occupies 4419m² but will cut back to 2933m² under the new 12-year lease that building owner Stride Property Ltd has agreed to.

Stride chief executive Philip Littlewood said both landlord & tenant would look for a new tenant for the 1486m² of level 1 space being vacated.

Attribution: Company release.

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8 properties sell at Bayleys’ southern auctions

8 North Island properties south of Auckland were sold in Bayleys’ Total Property auction series last week.

Image above: The Turners Auto building in Palmerston North, including the Workshop bar, sold last week on a 6.4% yield.

Bay of Plenty – Rotorua

Fairy Springs

153 Fairy Springs Rd:
Features: 1184m² site opposite Skyline Skyrides – 86m² showroom, 130m² 3-bedroom house plus 72m² workshop/garage
Outcome: sold with vacant possession for $580,000
Agents: Mark Slade & Brei Gudsell


320 Malfroy Rd:
Features: 3039m² commercial site, 502m² building split into 2 tenancies, education facility & dance studio, on 2- & 3-year leases
Rent $60,000/year net + gst
Outcome: sold for $650,000 at a 9.23% yield
Agents: Mark Slade & Brei Gudsell


Palmerston North

201-203 John F Kennedy Drive:
Features:  7454m² corner site, recently refurbished 2440m² warehouse & commercial building; anchor tenant NZX-listed Turners Auto has been in occupation for 19 years and renewed last July for 9 years; 392m² Workshop bar is the other occupant on 6-year lease from December 2016  
Outcome: sold for $3.855 million at a 6.4% yield
Agents: Dave & Kate Looney


Te Awamutu

61 Bruce Berquist Drive:
Features: 4732m² industrial site occupied by longstanding storage business, 132 units totalling 1520m² leased to over 100 tenants
Rent $192,000/year net + gst
Outcome: sold for $2.52 million at a 7.62% yield
Agent: Andrew Shaw

Te Rapa

31 McKee St:
Features: 1990m² industrial site, 661m² of modern buildings, 3 long-term tenants
Rent $90,973/year net + gst
Outcome: sold for $1.51 million at a 6.02% yield
Agent: Andrew Shaw

Wellington – Lower Hutt


15 Wakefield St:
Features: 769m² site, 792m² high stud, column-free warehouse by the Dowse Interchange, holding income from lease expiring 31 January 2018
Rent: $70,000/year gross + gst
Outcome: sold for $450,000
Agents: Paul Cudby & Matt Gibbs


12 Horlor St:
Features: 406m² site, 393m² 1950s industrial building with good seismic rating plus 5 parking spaces; 296m² ground-floor warehouse/workshop, showroom plus 97m² mezzanine office
Rent: estimated potential income of $39,725/year net + gst
Outcome: sold with vacant possession for $480,000
Agent: Paul Cudby


10 Te Puni St:
Features: 2130m² site adjacent to new Rebel Sports and Briscoes stores in Petone West’s growing bulk retail precinct, 1503m² high stud warehouse, office & showroom building, leased to 3 tenants with final lease expiries from 2018-20
Rent: $146,401/year net + gst (estimated full market rental $207,299 year net + gst)
Outcome: sold for $2.394 million at a 6.1% yield
Agents: Matt Gibbs & Fraser Press

Attribution: Agency release.

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Top court rejects golfcourse levy on Pauanui Lakes subdivision section owner

Pauanui Lakes homeowner Hartley Vincent has defeated the final attempt, in the Supreme Court, to make him pay levies to the golf club which runs the Coromandel development’s golfcourse.

Gary MacDougall (Pauanui Lake Resort Ltd) began his ambitious $34 million resort project in 1998 — 153 residential sections, mostly round the edge of an 18-hole golfcourse, and a 60-room lodge on a 100ha Duck Creek property that runs along a valley 4km from Hoppers’ Pauanui coastal development, but that original development company went into receivership on 1 August 2001.

Other developers took on the project but also collapsed in 2009 as the global financial crisis took hold.

Mr Vincent, co-owner of Harpers Fashions Ltd whose family trust owns lot 75 of the residential subdivision developed around the course, and current golfcourse business owners & managers Lakes International Golf Management Ltd & The Lakes International Golf Course Ltd squared off before Associate Judge Hannah Sargisson in 2 separate summary judgment cases in the High Court in 2013, for a nil decision.

The case then went to trial in the High Court before Justice Paul Heath, who found the golfcourse businesses were entitled to levy Mr Vincent for fees. Justice Heath found that Lakes International Golf Management was entitled to enforce the covenant originally to have been held by an incorporated society, which was never formed, and that Mr Vincent was required as owner of a subdivision lot to join the golf club.

Mr Vincent appealed to the Court of Appeal, which supported his case in 2014.

The Court of Appeal said: “In our view, the scheme of the covenant and the wording of the definition of ‘golf club’ are clear and permit of only one meaning. The obligations were imposed in relation to a golf club that was to be incorporated as an incorporated society to provide for playing rights on the golf course.”

However, in the Supreme Court decision written by Justice Sir Willie Young & issued on Wednesday, the country’s highest court said it was satisfied “that there is no occasion for us to reach a concluded view in respect of them [arguments over whether a society as postulated would meet what was envisaged by the covenant]. This is because the case must be determined by reference to what has, and not what might have, happened.

“What has happened is that the golf club as established is not of the kind stipulated in the covenant. That it might have been no less onerous for Mr Vincent to join a golf club which was an incorporated society is of no moment as he cannot be compelled to do something which is different from what he agreed.”

The 5 members of the Supreme Court who heard the case in March were Chief Justice Dame Sian Elias and Justices Sir Willie Young, Susan Glazebrook, Mark OʼRegan & Ellen France.

Link: Supreme Court decision

Earlier story:
U: The names behind the action, the week to 24 April 2011, part 1, Richard & Susan Herbert’s insolvency proposals go to joint hearing

Attribution: Supreme Court decision.

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Brooklyn apartment & Thames retail passed in

A refurbished apartment in the Brooklyn building on Emily Place and a Thames retail building were passed in at Bayleys’ auction on Wednesday.



Learning Quarter

Brooklyn, 66 Emily Place, unit 44:
Features: refurbished one-bedroom apartment
Outgoings: body corp levy $4862/year
Outcome: passed in after bid at $450,000 and vendor bid at $475,000
Agents: Julie Prince & Diane Jackson


South of the Bombays


Thames, 101 Pahau St:
Features: 587m² building, 2 retail tenants – Resene Paints Ltd & St John Op Shop, upstairs office suite vacant
Rent: $48,600/year net + gst
Outcome: passed in at $665,000
Agents: Geoff Graham

Attribution: Auction.

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Visy to build 3ha facility at Titanium Park

Packaging & recycling business Visy Board (NZ) Ltd has confirmed it will invest $100 million in a 3ha facility on an 8.5ha site in the Western Precinct of Titanium Park, next to Hamilton Airport.

Visy, owned by Pratt Consolidated Holdings Pty Ltd of Melbourne, has one other packaging plant in New Zealand, at Wiri in Auckland.

The 22ha Western Precinct is being delivered by Titanium Park Development Ltd, a joint venture between McConnell Developments Holdings Ltd & Todd Property Group Ltd.

2 other freehold sites in the precinct have been sold and a 1.5ha site is under contract, leaving 10ha available. Lot boundaries are flexible, and McConnell Property general manager Nigel Richards said the subdivision had natural gas on tap, business-friendly zoning & an absence of development contributions.

He expects works on the key spine road into the precinct to be completed by September, linking to the adjoining state highways 3 & 21.

Titanium Park is a masterplanned business park surrounding Hamilton airport, which allows it to offer unique zoning & resource consent process, ease of access and flexibility around lot sizes & usage.

The 117ha business park has been divided into 6 precincts, with the initial development focused on the Central, Raynes & Western Precincts.

Link: Titanium Park

Earlier story:
11 March 2009: Green light for Titanium Park at Hamilton Airport

Attribution: Company release.

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