Archive | Wellington

12 Total Property auction sales south of Auckland

All 6 properties in Bayleys’ third Wellington Total Property auction for the year were sold under the hammer on Thursday, and another 6 on the Coromandel, Waikato & Rotorua were sold.

South of the Bombays


243 Colville Rd (pictured above):
Features: Shelly Beach campground, 5.0627ha beachfront site operating under Top 10 Holiday Park brand, 5km from Coromandel township, comprising a variety of camping facilities plus manager’s accommodation & house
Outcome: sold as freehold going concern for $3 million
Agents: Josh Smith & Belinda Sammons


458 Pollen St:
Features: 2836m2 mainstreet site, Mitre 10 the anchor occupant, 1659m2 of buildings earthquake strengthened to over 67% of new building standard, various lease terms to Mitre 10 running to 2021 with renewal rights, plus small upstairs office lease to Home IT Solutions
Rent: $145,500/year net + gst
Outcome: sold for $2.165 million at a 6.7% yield.
Agents: Josh Smith & Mary Walker



81 Pururu St:
Features: 1012m2 industrial site, large yard area, 471m2 high-stud warehouse & office building previously split into 2 tenancies
Outcome: sold vacant for $401,000
Agents: Mark Slade & Brei Gudsell



56 Grey St:
Features: 9800m² site, 1150m² ex-bulk petfood-processing facility
Outcome: sold vacant for $1.2 million
Agent: Josh Smith

7 Station Rd:
Features: High-exposure 1062m2 corner site with 900m2 warehouse/factory, ex Lemon & Paeroa bottling plant
Outcome: sold vacant for $420,000
Agent: Josh Smith

Te Awamutu

355 Rickit Rd:
Features: 653m2 road-frontage site, 410m2 building, fully leased to 2 established electrical tenants
Rent: $56,000/year net + gst
Outcome: sold for $760,000 at a 7.4% yield
Agents: Alex ten Hove & Mike Swanson



5 Albert St:
Features: strengthened & refurbished 1356m² commercial building, 1006m² of mostly office space leased to Department of Corrections for 9 years from October 2015, 350m² at the front of the building is vacant
Rent: $118,216/year net + gst
Outcome: sold for $1.275 million
Agents: Andrew Smith, John Pritchard & Dave Wish


Lower Hutt

444 Cuba St, Lower Hutt.

444 Cuba St:
Features: 1295m² corner site, 300m² rear parking & yard area, high-stud 1100m² refurbished retail building, Hunting & Fishing in occupation for over 20 years, current 6-year lease from October 2014 plus one 4-year right of renewal
Rent: $86,800/year net + gst
Outcome: sold for $975,000 at an 8.9% yield
Agent: Mark Sherlock

MacKay House, 92 Queens Drive, level 2:
Features: 326m² office floor needing renovation, in 1960s building adjacent to Queensgate Mall, part leased to 2 tenants, two-thirds vacant
Rent: $31,500/year gross + gst
Outcome: sold for $50,000
Agents: Paul Cudby & Andrew Smith


17 Glover St:
Features: 603m2 business 2-zoned narrow, bare site, 300m2 flat usable area, excavation required for greater footprint, concept plans for 270m2 warehouse
Outcome: sold for $280,000 at $464/m2
Agents: Matt Gibbs & Fraser Press

2 Hartham Place South, Porirua.


2 Hartham Place South:
Features: 380m², 2-level cbd commercial building, tenant parking at rear, ground floor leased to Pacific Radiology, first floor occupied by law firm & physiotherapist with leases until 2019 & 2020 plus rights of renewal
Rent: $50,350/year net + gst
Outcome: sold for $712,000 at a 7.1% yield
Agent: Jon Pottinger


108 Main Rd:
Features: 161m² purpose-built dental surgery on 1019m² residentially zoned site with large parking area, 5-year lease to Lumino the Dentist from October 2016, with one 5-year right of renewal
Rent: $33,280/year net + gst
Outcome: sold for $582,000 at a 5.72% yield
Agents: Jon Pottinger & Stephen Lange

Attribution: Agency release.

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3 commercial sales at Wairau Valley, Te Rapa & Waikanae

Colliers has reported 3 sales around the North Island – a former gym, now office & warehouse, in the Wairau Valley (pictured) and properties at Te Rapa outside Hamilton and Waikanae outside Wellington.


Wairau Valley

6 Target Court:
Features: 3265m² industrial site, 1182m² floor area, originally a gym, now an office & warehouse, 28 parking spaces
Rent: $214,399/year net + gst holding income until 30 November from departing tenant
Outcome: asking $3.37 million, sold for $3.2 million + gst at a 6.7% yield
Agents: Nick Recordon, Matt Prentice & Jimmy O’Brien

South of the Bombays


Te Rapa

4 Maui St:
Features: 2317m² site at the corner Church Rd, occupied by the Cock & Bull bar, 36% site coverage, 47 parking spaces
Rent: $242,000/year net + gst, new 6-year lease from April 2016
Outcome: sold for $3.26 million + gst
Agents: Alan Pracy  Justin Oliver, with a referral from Jolyon Thomson &  Ben Cockram



3 Omahi St:
Features: 917m² site, 393m² office & retail, 10 parking spaces
Outcome: sold for $1.39 million + gst at a 6.98% yield
Agents: Dean Anderson

Attribution: Agency release.

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7 Total Property sales down country

Bayleys made 7 sales in its Total Property Auctions south of Auckland last week – 3 in the Waikato, 3 in Wellington and one in Christchurch, a building beside the Avon on Cambridge Terrace (pictured).

South of the Bombays


Te Aroha

164 Whitaker St:
Features: 1474m2 corner site opposite clock tower in commercial precinct, 983m2 building, NZ Post occupies rear space, 2 larger streetfront premises are vacant
Rent: $10,840/year net + gst holding income, potential to increase to $50-60,000/year net + gst
Outcome: sold for $505,000
Agent: Josh Smith

Te Rapa

25 Sheffield St:
Features: 3145m² site, 2154m² industrial building, 3 gantry cranes & secure yard, leaseback holding income to October 2018 with opportunities for subdivision or development
Rent: $157,725/year net + gst
Outcome: sold for $2.25 million at a 7.01% yield
Agents: Mike Swanson (Bayleys) & Theo de Leeuw (NAI Harcourts)


15-17 Main Rd:
Features: 1058m2 State Highway 1 site, 6 retail units totalling 500m² and 80m² flat, 65m² of vacant space, 6 offstreet parking spaces
Rent: $60,745/year gross
Outcome: sold for $540,000
Agents: Alex ten Hove & Mike Swanson



55 Kaiwharawhara Rd:
Features: 408m² of vacant land zoned commercial/industrial
Outcome: sold for $450,000 at $1102/m²
Agents: Fraser Press & Matt Gibbs


20 Main Rd:
Features: 419m² retail unit occupied by Creative Curtains for over 18 years, lease renewed for 8 years
Rent: $58,000/year net + gst
Outcome: sold for $750,000 at a 7.73% yield
Agents: Mark Walker, Jon Pottinger & Grant Young


6 Queen St:
Features: 290m² 2-level building previously occupied by Westpac Bank, ground-floor retail space & offices above, 2 parking spaces, potential rent of $28,540/year net + gst
Outcome: sold with vacant possession for $440,000
Agents: Paul Cudby & Andrew Smith

South Island


Christchurch cbd

61 Cambridge Terrace:
Features: 682m² site overlooking the Avon River, 5-level Miles Warren-designed 914m² boutique office building, partly occupied by 5 tenants, 231m² level 3 & 64m² penthouse vacant
Rent: $189,672/year net + gst
Outcome: sold for $2.285 million
Agents: George Phillips & Angela Webb

Attribution: Agency release.

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Statistics House quake damage prompts standards review

Building & Construction Minister Nick Smith said on Friday design standards & building laws would be reviewed in response to an investigation into structural damage to Statistics House in Wellington in the Kaikoura earthquake on 14 November.

He released an independent panel’s findings into the performance of the building during the quake, which focused on its design & construction and the land influences on it.

The panel found a combination of 4 factors contributed to the partial failure of lower floor segments.

2 of the factors – the flexible frames & style of floor construction – combined with significant shaking for up to 120 seconds, and localised amplification of the shaking, to compromise the support of the lower precast concrete floor units.

The panel also noted that the combination of factors that led to the partial collapse of floor units in Statistics House wasn’t anticipated by the design standards in place when it was built in 2005.

The Ministry of Business, Innovation & Employment, the Institution of Professional Engineers (IPENZ) & the institution’s technical societies have produced information for owners & building professionals responsible for assessing & designing multi-storey concrete moment-resisting frame buildings with precast concrete floor systems that may be vulnerable to loss of floor support during an earthquake.

Performance “unacceptable”

Dr Smith said: “The performance of Statistics House in the Kaikoura earthquake was unacceptable and could have caused fatalities. This quake was large & unusually long, but a modern building like Statistics House should not have had life-threatening structural damage. The building was designed to the industry practice of the time, but this did not fully account for the effects of beam elongation during an earthquake, an issue that was deficient in the concrete structures standard at the time of the design.

“The design flaw is quite specific to highly ductile framed concrete buildings with precast floor slabs, and particularly those with multi-bay frames. We need to follow up on similarly designed buildings through councils & engineering companies so that where it is a problem, it can be rectified. This has already been done in respect of Wellington as a consequence of the preliminary findings in Statistics House, but now needs to be followed up elsewhere.

“We also need to amend the concrete structures standard to ensure newly designed buildings are adequately designed to cope with beam elongation during long-duration earthquakes. This will be done this year.

“A compounding factor was geological basin effects that are not well understood but which have also been observed in other earthquakes internationally. This is not to do with reclaimed land but the amplification of ground shaking in a basin. This phenomenon is similar to the way sea waves respond to a wall in an enclosed bay. This is an area of seismic science that needs further research, particularly in respect of Wellington, and to be considered as part of a review of the earthquake actions standard.

Building law issue

“There is a building law issue that arises from this report on which I have asked officials to report. The Ministry of Business, Innovation & Employment has limited powers to follow up on design deficiencies like those identified in this report, beyond those specifically provided for following civil emergencies. This means the ministry cannot require building owners to follow up on these sorts of potentially serious technical problems. I have asked the ministry to report on whether additional powers are needed in the Building Act.”

Dr Smith said New Zealand was at the cutting edge of international seismic design standards, but hadn’t yet solved all of the potential ways a building can fail: “Most buildings in Wellington performed well despite the ferocity of the Kaikoura earthquake. We need to take the opportunity following such earthquakes to learn as much as we can and to further strengthen our standards & systems to improve building safety for the future.

“These detailed issues over the performance of modern buildings are important for improving design standards, but they should not divert attention away from the far more significant risk to life of older buildings. The Kaikoura earthquake was sufficiently distant from Wellington that the city did not get the dangerous high frequency shaking that poses the greatest risk to life.

“The largest safety gains for Wellington are to be made in the initiatives requiring unreinforced masonry facades & parapets to be tied back over the next year, and all earthquake-prone buildings under 34% of Building Code to be upgraded under the new law coming into effect on 1 July.”

Statistics House investigation
Framed buildings with precast concrete floor systems

Attribution: Ministry website & ministerial release.

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Rest of Queensgate shopping centre to reopen

Stride Investment Management Ltd said on Wednesday it would reopen the balance of the Queensgate shopping centre in Lower Hutt on Thursday 6 April following completion of demolition of a portion of the carpark & its cinema complex.

The centre was closed for inspection after the Kaikoura earthquake in November and partially reopened 11 days later. It will be reclad and a ground-level carpark put in the place of the current demolition site. Some egress points will also change.

Stride Investment Management has previously announced it will rebuild the cinema complex. In the meantime, regional centre manager Jan Plummer said, the ground-level parking & cladding would be a medium-term solution.

“Shrink-wrapping the building to create protection from the elements will allow contractors to take their time in creating the best possible medium-term design aesthetic, with the intention being that the shrink wrap will still be in place at the time of reopening to allow this work to continue.”

Ms Plummer said retailers whose premises remained closed because of the adjacent demolition would be given a confirmed date to access their stores in the next week.

Queensgate is owned by the Diversified NZ Property Trust.

Attribution: Company release.

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Chows revert from hotel to office upgrade for old Colonial Motors building

NZX-listed property company Chow Group Ltd’s management company, CGML Ltd, said yesterday it had axed plans for a 230-room hotel conversion of its century-old 89 Courtenay Place tower in Wellington and, instead, would upgrade it for office use.

Director Michael Chow said the 9-storey 8720m² building would be upgraded to 88% of new building standard, making it one of the highest seismically rated office buildings in the Te Aro district of Wellington.

Mr Chow said the refurbishment would be a multi-million dollar exercise, but didn’t give a precise figure.

The former Colonial Motor Co Ltd building was erected in 1922, with changes to its Courtenay Place façade since then.

Mr Chow said refurbishment would start this month, and phased completion would start happening within 3 months.

The building has 950m² floorplates, some with character ceilings, and it’s best known for its expanse of windows. It has 70 secure onsite parking spaces, accessible from York St.

Last year, the Chow brothers had planned to convert the commercial space into a 4-star 230-room deluxe hotel, but changed their minds after the November 2016 earthquakes, where retaining the commercial property was better aligned to the Chow Group’s business goals.

“An important consideration for businesses is the safety of buildings in the event of seismic activity. The structural integrity of 89 Courtenay Place was not affected by the November 2016 7.8 earthquake, meaning our existing tenants were undisturbed while much of the city came to an abrupt halt.

“As part of our refurbishment plans, we are taking steps to increase our new building standard rating from 71% to 88% and we anticipate high demand for these spaces, which have been offered for immediate lease.” he said.

Naming rights will also be available.

History, Wellington City Council heritage site

Attribution: Company release.

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11 Total Property auction sales outside Auckland

11 commercial properties were sold at Bayleys’ Total Property auctions outside Auckland last week, on top of 12 sales through its Auckland auction.

A new office building in Hamilton (pictured) sold at a 5.4% yield and an older Hamilton building at a 6.4% yield, yields on Porirua food outlets varied from 5.6% to 7.9%, and 2 buildings in Christchurch sold at yields of 5.8% & 6.1%.



185 Waipapa Rd:
Features: 6340m2 site, 8km from centre of Kerikeri, 590m2 industrial building, 3 short-term leases all expiring in May
Rent: $53,000/year net + gst
Outcome: sold for $785,000 at a 6.75% yield
Agent: Alan Broadbent

South of the Bombays

Bay of Plenty


56 Elizabeth St:
Features: 481m2 cbd site next to large carpark, 890m2 2-level building, partly occupied by Subway, balance of ground floor & upper-level office space vacant
Rent: $43,028/year net + gst; estimated potential income about $180,000/year net + gst
Outcome: sold for $2.15 million
Agents: Brendon & Lynn Bradley



92 Kent St:
Features: 607m2 corner site, 352m2 2-level building, long established tenant Waikato Drycleaners on 3-year lease from September 2014, 2 3-year rights of renewal
Rent: $32,000/year net + gst
Outcome: sold for $500,000 at a 6.4% yield
Agents: Brendon & Lynn Bradley & Mike Swanson


238 Anglesea St:
Features: 825m2 cbd site on the corner of Collingwood St, 1426m2 2-level new A grade office building, fully leased to 3 tenants on 3- to 6-year leases, Mike Greer Homes on ground floor and the Public Trust above
Rent: $254,661/year net + gst
Outcome: sold for $4.7 million at a 5.4% yield
Agents: Alex ten Hove & Mike Swanson


Grenada North

16 Jamaica Drive, unit 44:
Features: 175m2, 6.4m-high warehouse/factory unit, 3 parking spaces in Grenada business park
Outcome: sold vacant for $355,000
Agent: Andrew Smith

Lower Hutt

Alicetown, 5 Victoria St:
Features: 299mworkshop, 3-4 park parking spaces
Outcome: sold vacant for $350,000
Agents: Andrew Smith & Paul Cudby


1C Hagley St:
Features: 109m2 unit occupied by Chef’s Palette noodle bar for 3 years from May 2015, 2 3-year rights of renewal, one rear parking space
Rent: $18,130/year net + gst
Outcome: sold for $325,000 at a 5.6% yield
Agent: Jon Pottinger

1D & 1E Hagley St:
Features: 603m2 unit occupied by Dynasty Chinese restaurant for 6 years from July 2014, with one 6-year right of renewal, 2 rear parking spaces
Rent: $72,561/year net + gst
Outcome: sold for $920,000 at a 7.9% yield
Agents: Jon Pottinger

South Island



218-240 Carters Rd:
Features: 2.8867ha in 2 titles on State Highway 1 site, 8500m2 of vacant land available for development or lease, about 1000m2 of industrial buildings with 6 tenancies, short average lease term, 60m2 vacant, anchored by timber company Goldpine
Rent: $112,000/year net + gst
Outcome: sold for $1.45 million at a 7.72% yield
Agents: Stewart White, Chris Frank & Alex White


Sockburn, 22 Alloy St:
Features: 1041m2 site, 13 offstreet parking spaces, 546m2 warehouse & office building; Teltrac Communications Ltd has occupied it since early 1990s and has new 6-year lease from January 2017 and 2 4-year rights of renewal
Rent: $92,000/year net + gst
Outcome: sold for $1.504 million at a 6.1% yield
Agents: Stewart White, Chris Frank & Alex White

Waltham, 18 Iversen Terrace:
Features: 1000m2 site, 815m2 warehouse & office building; Larson-Juhl NZ Ltd has occupied it since 2002 & exercised final 3-year right of renewal in September 2016
Rent: $83,816/year net + gst
Outcome: sold for $1.445 million at a 5.8% yield
Agent: Nick O’Styke

Attribution: Agency release.

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Shelly Bay joint venture rejection overturned

The Wellington Co Ltd (Ian Cassels & Caitlin Taylor) has decided to apply for resource consent for a $300 million mixed-used development at Shelly Bay, on the Miramar Peninsula in Wellington, before its joint venture with Taranaki Whanui is finalised.

The trust, Taranaki Whanui ki Te Upoko o Te Ika, also known as the Port Nicholson Block Settlement Trust, is the landowner after buying Shelly Bay from the Government in 2009. It forms about 60% of the trust’s portfolio.

Shelly Bay was a Defence Force base for over 100 years, but the Air Force stopped using it in 1995.

Iwi members rejected the proposal last year but the trust said this week they’d now approved it.

Mr Cassels said his company was discussing with Wellington City Council the possibility of adding adjacent land to the masterplan area. At the moment the proposed development includes 300 houses in a variety of designs, a boutique hotel and a restaurant. 4 heritage buildings are targeted for a range of uses, including hospitality, short-term stay accommodation and commercial mixed use.

6400m² of public open space and a ferry connection to the cbd are features of the proposal.

Wayne Mulligan, elected to chair the trust board late last year, said Shelly Bay in its present state provided very poor returns and constrained the trust’s development & growth.

Attribution: Company & trust release.

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13 sales around North Island

13 sales & 2 leases around the North Island have been reported by Colliers.


Isthmus east


7 Edgerley Ave:
Features: 716m² site, 464m² commercial building
Outcome: sold for $3.45 million, representing $4818/m² land & building
Agents: Jonathan Lynch & Simon Child


132 Portage Rd:
Features: 4960m² site, 2324m² office & warehouse
Outcome: sold for $4.5 million at a 6.5% yield
Agents: Hamish West, Ben Herlihy, Andrew Hooper & Matt Prentice


60 Hugo Johnston Drive:
Features: 4175m² industrial property, 1117m² 2-level office building & 1087m² standalone warehouse
Outcome: sold for $5.45 million at a 6.72% yield
Agents: Paul Jarvie, Brad Johnston & Greg Goldfinch

Isthmus west

Mt Eden

108 Mt Eden Rd:
Features: 1070m² site, 700m² 2-level office building
Outcome: sold for $4.55 million, representing $4252/m² land & building
Agent: Jonathan Lynch



63 Apollo Drive, unit B1:
Features: 444m² commercial uni,
Outcome: sold vacant for $1.85 million
Agents: Nick Recordon & Janet Marshall



202-220 Main Rd:
Features: 4153m² site, 1740m² office & warehouse
Outcome: sold for $2.2 million, representing $530/m² land & building
Agents: Jonathan Lynch & Craig Smith


East Tamaki

27 Zelanian Drive:
Features: 5863m² vacant office & warehouse
Outcome: sold for $8.475 million
Agents: Andrew Hooper, Greg Goldfinch, Paul Higgins & Brad Johnston

South of the Bombays

Bay of Plenty

Mt Maunganui

24 Pacific Avenue:
Features: 675m² site, 440m² retail building,
Outcome: sold for $3.075 million at a 4.3% yield
Agents: Simon Clark, Rob Schoeser & Hadley Brown


422-430 Ngongotaha Rd:
Features: 2.66ha industrial development site, 1056m² warehouse,
Outcome: sold vacant for $2.4 million
Agent: Mark Rendell


Palmerston North

360 Albert St:
Features: 382m² site, 220m² retail building,
Outcome: sold for $800,000 at a 5.5% yield
Agents: Phil Nevill, Grant Lloyd & Doug Russell

314-322 Rangitikei St:
Features: vacant 1616m² property,
Outcome: sold for $1 million
Agents: Grant Lloyd, Phil Nevill & Doug Russell



69 Vickery St, unit 9:
Features: 681m² industrial/retail unit,
Outcome: sold for $1.416 million at a 5.68% yield
Agent: John Hagar


Lower Hutt

71 Port Rd:
Features: 4049m² site, 2411m² office & warehouse
Outcome: sold for $2.83 million
Agents: Tim Julian & Kieran Lennon


Isthmus east

Mt Wellington

103 Carbine Rd:
Features: 1664m² commercial premises leased to ECL Group Fuel Systems Ltd for a 6-year term on behalf of Windward Properties Ltd
Agents: Hamish West, Paul Higgins & Andrew Hooper

South of the Bombays – Wellington

Lower Hutt

109 Port Rd:
Features: 4852m² commercial premises leased to Linfox Logistics NZ Ltd for a 6-year term on behalf of Seaview Commercial Investments Ltd
Agent: Kieran Lennon

Attribution: Agency release.

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6 Taranaki & Wellington buildings sell

3 New Plymouth properties and 3 in Petone (pictured above) & Porirua were sold last week as Bayleys’ Total Property auctions headed down country.

The 2 sales on Devon St, New Plymouth were at the same price but on very different yields – one of them home to a building with a low seismic rating.

South of the Bombays


New Plymouth

79-87 Devon St East:
Features: 1969m² cbd landholding in 2 titles with frontage also to Gill St; 2-level 2990m² character building, low seismic rating, 5 retail & office tenants
Rent: $225,456/year net + gst
Outcome: sold for $1.2 million
Agents: Alan Johnston & Iain Taylor

137 Devon St East:
Features: 490m² cbd site, 805m² recently refurbished building, 7 basement parking spaces, 8-year lease to franchisee of Cash Converters from October 2015
Rent: $80,000/year net + gst
Outcome: sold for $1.2 million at a 6.67% yield
Agents: Alan Johnston & Iain Taylor

16 Hobson St:
Features: 502m² business B-zoned redevelopment site in cbd fringe, 6-month redevelopment clause in lease, converted dwelling occupied by accounting practice
Rent: $29,724/year net + gst holding income
Outcome: sold for $585,000 at $1165.3/m²
Agents: Alan Johnston & Iain Taylor



220 Jackson St:
Features: 2 retail units totalling 227m² occupied by women’s fashion retailers on ground floor of George Apartments building constructed in 2003, character façade and seismic assessment of 100% of new building standard
Rent: $54,921/year net + gst
Outcome: sold for $830,000 at a 6.62% yield
Agents: Paul Cudby & Andrew Smith

220 Jackson St, apartment 4:
Features: 100m², fully furnished 2-bedroom apartment in George Apartments building, parking space, has been returning $750/week
Outcome: sold vacant for $500,000
Agents: Paul Cudby & Andrew Smith


2B Raiha St, Porirua.

2B Raiha St, Porirua.

2B Raiha St:
Features: 3056m² industrial site, 844m² 4-bay warehouse, 2 levels of offices & amenities, surplus land to develop
Outcome: sold vacant for $1.5 million
Agents: Jon Pottinger & Fraser Press

Attribution: Agency release.

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