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The Bob Dey Property Report newsletter, W30July14

The quite different incentive plans produced by 2 listed companies on Monday were intriguing. While one offered a jackpot and really didn’t look like a long-term plan, the other contained a couple of novel ideas and looked a little further forward…..

But, as you’ll see from my comment at the foot of the story, I think they are both fundamentally flawed. Both are about the encouragement of greed in one person, when boards ought to be encouraging an ethos of company-wide improvement. You don’t get that by throwing the bank book to the boss…..

A couple of commercial transactions this week have been at fairly firm yields – local investors are often inclined to pay that bit more, which is what happened in a Remuera tender. Over at Milford, a specialist medical centre attracted serious bidding, but it stopped just short of what blue chip assets have been achieving, perhaps the result of the recent interest rate rises….

In other news today…..

The BIM handbook is out. BIM – building information modelling – is a big advance in construction efficiency, pricing & understanding and attracts some very ardent enthusiasts….

In another building efficiency story, the Asteron headquarters in Wellington have achieved a 5.5-star Nabers energy efficiency rating, only the second building in the country to do it….

Dorchester Pacific’s bid to take over Turners Auctions isn’t surprising. Since the company exited its moratorium, it’s been intent on lifting itself through acquisition & rationalisation in specific finance sector fields….

And, at last, a highway PPP. Australia has had some bad experiences where new tolled highways haven’t secured the traffic to make them profitable. The terms of the Transmission Gully performance haven’t been fully spelt out, so it will be some years before we know if it’s a successful contract model….

On the move updated…..

On the move, July 2014

In the Neighbourhoods…..

Isthmus east – Remuera: Local investor buys block of Remuera shops

North-east – Milford: Milford medical centre sells at 6.5% yield

In the Sectors…..

In Gainz…..

Economy – productivity: BIM handbook released

Securities NZ – Dorchester Pacific: Dorchester launches full Turners Auctions bid after buying out Ecuadoreans

Sanford: 2 listed companies introduce quite different CEO incentive plans

In Land use…..

Design – green building: Asteron Centre in Wellington wins top energy-saving accolade

Infrastructure – roads: Transmission Gully PPP contract signed

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The Bob Dey Property Report newsletter, M28July14

I’ve expanded today on Friday’s board of inquiry decision on the Puhoi-Warkworth highway and on Justice Paul Heath’s elaboration on his original decision over the Mangawhai wastewater scheme…..

The Heath decision acknowledges clear injustice: The law has been used to shunt, to ratepayers, a bill not properly theirs. Nevertheless, the judge has concluded that that’s the way it is, so the ratepayers must pay….

The highway decision gives the NZ Transport Agency more flexibility about how it builds the road north of Puhoi than it’s been customary to allow any builder, a significant change in development rules….

The other big change from the board of inquiry process is about speed: Ministers sent the application to the Environmental Protection Authority in October, appointed the board in December, decision in July, limited appeals might come through in August, but with far less to resolve at that level…..

This process is great for its urgency. The other factors the “holiday highway” board despatched fairly quickly included economic issues – about the benefit to Northland, about the expense and what cost:benefit formula should be applied, about alternatives which a new band of public transport promoters have been arguing….

The board didn’t allow those high-level arguments to get in the way of a decision on the management of a specific resource, but where do “greater” resource management policies get argued if not through specific applications?

In other stories today….

Reserve Bank figures show 2 shifts in home lending – more high loan:value ratio loans, but much less lending overall….

Auckland Council has taken to telling the world the broad subject matter of its behind-closed-doors decision-making – yes, decision-making, because issues are clarified & resolved in confidential sessions, though the actual vote might be taken publicly later….

And the council also issued an odd release on Friday about its property management savings. As I’ve noted, the centrepiece of this release was issued 2 years ago….

Now, the classified….

For Sale: Telecom Place syndication, minimum investment $50,000.

And on to today’s storylinks….

In The Week…..

Bob Dey Property Report diary, week 28 July-3 August 2014

In the Neighbourhoods…..

North – Kaipara: Judge tells Mangawhai ratepayers to pay up, also awards them indemnity costs in more elaborate decision

In the Sectors…..

In Forward thinking…..

Councils – finance: Council holds closed session on long-term development

In Gainz…..

Economy – housing costs: High-LVR lending on rise again, but overall home lending in steep decline

Securities NZ – Auckland International Airport: Auckland Airport prices US private placement

Goodman Property Trust: Kiwibank exits Goodman funding syndicate

Northland Port: Northland Port changes name to Marsden Maritime to reduce confusion

In Land use…..

Councils – Auckland Council: Council promotes 2-year-old ASB deal in cost savings statement

Infrastructure – roads: NZTA gets Puhoi-Warkworth consents, no standard condition 1, economic & alternative objections sidelined

In Market….

Agency – CBRE: CBRE records 3 sales, 8 leases

Propbd on Q: Propbd on Q F25July14 – NZTA gets Puhoi-Warkworth consents, Judge tells Mangawhai ratepayers to pay up

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The Bob Dey Property Report newsletter, F25July14

Results from Colliers’ commercial auction yesterday (and updated this morning) plus 4 apartment auctions will give you an indication of what’s happening in some parts of the market……

Another indicator comes today from JLL’s assessment of the extremely tight office vacancy in Auckland’s cbd…..

On the move has a heap of additions, and I’ve finally posted a piece on who have been appointed as hearings commissioners…..

I’ve written another story on the rise of the BRICS in the international economy, illustrated by an advance that will have widespread repercussions….

The Reserve Bank under Graeme Wheeler seems to e directing traffic with a firmer hand….

And from Christchurch, I missed the shot of the transport minister ducking out a side door to catch a plane (on the same basis that the rest of us have to obey the rules but the Government doesn’t, same basis as illegal spying), but today we have an election kissing-babies pic – the prime minister examining a piece of metal….

Now, the classifieds….

For Sale Waiheke Island: 38ha of land with development potential between Palm Beach and Onetangi

And today’s storylinks….

On the move – a big update today…..

On the move, July 2014

Hearing commissioners appointed (written 3 weeks ago but not posted until yesterday)

In the Neighbourhoods…..

South Island – Canterbury: Thermosash opens new Christchurch production facility

In the Sectors…..

In Gainz…..

Economy – interest rates: Fourth cashrate rise, and then a pause

Trade: Who cares about BRICS? You will, when it affects the dollar in your pocket

In Market….

Agency – Colliers: Updated: 2 sell at Colliers auction, another post-auction

Apartments – cbd and fringe: Leasehold marked down as 4 apartments sell

One sale – then the rest passed in

Unilodge & Kohimarama apartments sell

George Court apartment sells, Peace House one passed in

Propbd on Q: Propbd on Q Th3July14 – 4 sell at Ray White, 2 sell at Colliers, yesterday’s auctions, OCR decision

Propbd on Q W23July14 – George Court apartment sells, Peace House one passed in; one sale – then the rest passed in; 2 apartments sell at Barfoots

Research – agency: JLL says cbd office vacancy just 0.6%

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The Bob Dey Property Report newsletter, W23July14

Emailed to subscribers Wednesday 23 July 2014:
The Productivity Commission has made its recommendations on sprucing up local government rules & regulations, the Government has accepted all but 2 of them, and the minister for the sector, Paula Bennett, has decided it’s time for a serious cleanup of “loopy” rules – 3 stories, the first last Friday, the other 2 today….

The bill changing how NZ Standards are handled made its way into Parliament yesterday…..

In the securities markets, Millennium & Copthorne’s Chinese development offshoot – now partly owned by about 1500 of the NZX-listed company’s shareholders – had an inauspicious start on the Singapore stock exchange yesterday….

NZF Group, a small listed financier which has sold all its assets, as set the date for a meeting of noteholders which will decide its fate….

On a brighter note in the securities market, Ryman has bought Bill Subritzky’s Tropicana for a retirement village…..

Remarkables Park, beside the airport at Queenstown, has been promised a convention centre by the developers, the Porter brothers, and this week the consent application was lodged for the first its proposed 2 hotels…..

And the migration picture continues to be most unusual – Kiwis are returning from Australia in their droves and the exit from this country has slowed right down. That presents potential distortions in some markets, such as housing….

Now, the classifieds….

For Sale: Hawkes Bay bulk retail complex occupied by The Warehouse, returning $332,845pa.

And today’s storylinks….

In the Neighbourhoods…..

South Island – Lakes: Safari to build Ramada hotel at Remarkables Park

In the Sectors…..

In Forward thinking…..

Governance: All but 2 Productivity Commission recommendations on local government rules accepted

Bennett says Begone! to “loopy” rules

Original story: Productivity Commission sets out ideas for better regulation

Law – reform: Standards review bill introduced

In Gainz…..

Economy – migration: Immigration up, emigration down even more as net inflow tops 38,000

Securities NZ – Millennium and Copthorne: First Sponsor price drops in first day of Singapore trading

NZF Group: NZF Group calls meeting on its fate

Ryman: Ryman buys Subritzky’s Tropicana

In Market….

Propbd on Q: Propbd on Q M21July14 – Net migrant inflow 38,000+

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The Bob Dey Property Report newsletter, M21July14

Emailed to subscribers Monday 21 July 2014
Today’s foreign stories are relevant to us here. Meanwhile, the big property information out yesterday was the decision to turn 12,000ha on Great Barrier Island into a conservation park…..

That ties in with some of the agenda items coming up this week at Auckland Council, including one on greenways listed for the parks, recreation & sport committee…..

They’re not about property investment or development, but they are about what makes a city something beyond the ordinary, and that affects pricing…..

This week’s diary listings are extensive – a long list of results announcement & annual meeting dates for the listeds…. the first session of Parliament’s final 6 sitting days…. agenda items of interest to the property world for council committees, some local boards and one or 2 other boards & forums….

I’ve updated On the move again this morning – the latest entry is about a new property investment company with some old faces…..

Now, back to the foreign items….

Productivity commissions have been busy on both sides of the Tasman. New Zealand’s came out last week with ideas on improving central government regulation (Productivity Commission sets out ideas for better regulation ) and Australia’s has produced a quickfire (but long) report on getting more private-sector money into the country’s infrastructure…..

I’ve put the Australian material into 2 stories – the first containing key points and a number of the recommendations, the second containing some examples of how to do infrastructure badly, plus some points (relevant here) on the frequently enormous gap between estimates & actual project costs….

Also from overseas, you can check out a few views on the BRICS development bank set up last week…. It looks faraway, hardly relevant to your small commercial property investment on a suburban backstreet – but look again: On top of the Middle East & Ukraine furnaces, the BRICS group is led by people determined to no longer be classified as second-class citizens, and that entails a long international power struggle, including currency positioning and likely to involve major redirection of capital investment….

And now the classifieds….

Great little investment property up for Auction

Road front industrial for Auction – huge exposure – new lease

For Sale: Fully leased Orakei retail and office building on 1,108m² site with development potential.

Today’s storylinks….

In The Week…..

Bob Dey Property Report diary, week 21-27 July 2014

On the move updated…..

On the move, July 2014

In the Neighbourhoods…..

Hauraki Gulf – Great Barrier: 12,000ha of Great Barrier gets conservation park status

In the Sectors…..

In Forward thinking…..

Economy – banking: BRICS’ new bank a step change in international influence

In Gainz…..

Economy – Australia: Australian commission recommends privatising electricity businesses & ports

Credibility gap examined in public infrastructure costings

In Market….

Agency – Bayleys: Wellsford development site sold, 4 Wairau Valley leases signed

Hospitality – hotels: JLL says current projects will lift hotel space by 5.4%

Propbd on Q: Propbd on Q F18July14 – Ruru leaves Kaipara, M&C restructure done

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The Bob Dey Property Report newsletter, F18July14

An Australian Reserve Bank discussion paper out this week had media across the Tasman mostly concluding it was better to rent than own a house, and I spotted one fairly rabid report deriding economists for thinking financial factors were everything….

It’s an interesting piece of research – aimed at economists more than the rest of us because it offers some new work on modelling. But it should also interest other participants in the residential markets, including on this side of the Tasman, for the potential to get good research in place of much of the bad research we rely on…..

And, rather than the simple conclusion that renting is better, you’ll see from my report today that there’s a range of possibilities depending on various circumstances, some of which are outlined…. The economists who wrote the paper also emphasised that they were only looking at financial factors – and acknowledged that other factors could easily hold more sway….

On this side of the Tasman, the Productivity Commission has produced its final report on government regulation, which is clear in many of its findings and doesn’t contain a lot of recommendations. Most of the recommendations are for top-level action – but the commission noted that few of the regulator chief executives agreed their staff had significant skill gaps, which places the outcomes in question….

In residential development, a group of Hobsonville landowners has got together to advance the first plan variation for largescale subdivision under the housing accord…..

Also today, reports from 2 auctions….. and a report from a real estate analyst on the Chinese capital inflow…..

On the move updated…..

On the move, July 2014

In the Neighbourhoods…..

North-west – Hobsonville: Scott Pt group lodges first plan variation under housing accord

In the Sectors…..

In Forward thinking…..

Governance: Productivity Commission sets out ideas for better regulation

In Gainz…..

Economy – housing costs:Australian researchers ask if housing’s overvalued; the answer? That depends….

Securities NZ – Kirkcaldie and Stains: Harbour City Centre sale deal simplified

In Market….

Apartments – cbd and fringe: 5 sell under hammer at Ray White apartments auction

Industrial unit, cbd & Broadway Park apartments sell at auction

Propbd on Q: Propbd on Q Th17July14 – 6 sell at apartments auction, industrial unit & 2 apartments sell

Research – agency: Agency reports on 2-tiered market arising from Chinese capital inflows

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The Bob Dey Property Report newsletter, W16July14

Goodman Property Trust has produced an unusual proposal for its annual meeting, an offer to rebate the management fee that would normally be paid on the value of development land. At the present value of that land, the rebate is worth $1 million……

Over at DNZ, former chief executive Paul Duffy has new ventures to work on and has sold a large portion of his stake in the company he took to listing…..

A third listed entity, Auckland Airport, has begun earthworks that will lead to the combining of the domestic & international terminals…..

In the engineering sector, Aecom continues its expansion, with a proposal to swallow URS its latest move…..

And in the banking sector, China Construction Bank has registered a New Zealand subsidiary….

In research, CBRE’s Hong Kong office has come up with a projection of huge investment into international markets by Asia’s insurers as regulations change….

And locally, a pause in transactions at the top end of the market reduced the rise of the median house price

Now, the classifieds……

Developer’s Dream: 5,954m2 of premier land in Remuera, first time on the market in over 100 years.

Penrose Industrial – 9m Stud – Presented like new!

And today’s news links….

On the move updated…..

On the move, July 2014

In the Neighbourhoods…..

South – airport: Airport takes first step towards combined terminal

In the Sectors…..

In Gainz…..

Finance – banks: China Construction Bank registers in NZ

Securities NZ – DNZ: Duffy sells large portion of DNZ stake

Goodman: Goodman manager proposes incentive to make development land income-producing faster

In Market….

Business sales: Aecom offers $US4 billion for URS

Research – agency: Research projects huge rise in Asian insurance money into property

Residential – REI: Median house price slips as top brackets’ market share eases

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The Bob Dey Property Report newsletter, M14July14

It’s a short newsletter today – the diary, On the Move and one story on banking reform, and I’ve also added a link to Friday’s newsletter…..

The website crashed for a while on Friday – thanks to the many of you who let me know. It was back up reasonably quickly but, if you didn’t return, here are the links to a couple of stories you may have missed…..

Council starts Quay St design proposals process, seawall repairs begin

First Sponsor reduces float, Millennium & Copthorne NZ scheme approved, Maori Trustee sells out of partnership

Tamaki Drive penthouse sells

It’s also looking like a quiet week ahead, with limited council activity and a few auctions coming up…..

Now, the classifieds…..

For sale: North Shore retail opportunity, two tenants on new 15-year leases returning $295,809pa.

And today’s story links…..

In The Week…..

Bob Dey Property Report diary, week 14-20 July 2014

Friday’s newsletter: The Bob Dey Property Report newsletter, F11July14

On the move updated…..

On the move, July 2014

In the Sectors…..

In Forward thinking…..

Law – reform: Government seeks feedback on lending code

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The Bob Dey Property Report newsletter, F11July14

Canada’s pension funds are huge investors, but the $1 billion sale of an unlisted AMP portfolio yesterday amounts to only about 1% of the Canadian PSP Investments’ assets….

On a smaller scale, but more complicated for small investors, Millennium & Copthorne Hotels’ restructure won court approval yesterday, as the prospectus for the listing in Singapore of Chinese developer First Sponsor was finalised – both parts of the same package…..

In addition, yesterday, the Maori Trustee conditionally sold out of the management partnership with the hotel company….

Downtown, the council set the wheels in motion to start the design process for Quay St….

And out at Mangere, the Gateway project continues to be a future exercise, 2 years after approval for a visitor centre was approved….

In Christchurch, the Government has taken the opportunity of the 2010-11 earthquakes to speed up the district plan review process…

And in the building sector, builders will be lumbered with another set of rules from 1 January 2015….

I’m going to be out of town over the next few days, hope to file a prospectus story later today, may have trouble filing a newsletter on Monday but will work on it….

Now, the classifieds, followed by today’s story links….

For Sale: Trophy retail investment opportunity on Kepa Road, Kohimarama

In the Neighbourhoods…..

CBD – waterfront: Council starts Quay St design proposals process, seawall repairs begin

South – Mangere: Council to investigate homestead for gateway visitor centre, but only after debate on funding & possible longer deferral

South Island – Canterbury: Christchurch plan review will be accelerated

In the Sectors…..

In Gainz…..

Securities NZ – AMP Capital: AMP Property sells $1 billion portfolio, NZ Super Fund looks for new investments

Millennium and Copthorne: First Sponsor reduces float, Millennium & Copthorne NZ scheme approved, Maori Trustee sells out of partnership

Precinct: Precinct’s Auckland values rise with tide, uncertainty hurts Wellington

In Land use…..

Construction – Building Act: New disclosure rules written for builders

In Market….

Apartments – cbd and fringe: Updated: Large George Court apartment sells

Tamaki Drive penthouse sells

Columbia & Heritage Farmers units sell

Propbd on Q: Propbd on Q Th10July14 –$1 billion portfolio sold, Kiwi Income bonds, 2 units sell, Quay St design, Mangere Gateway

Propbd on Q W9July14 – George Court sale, Tamaki Drive penthouse sells

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The Bob Dey Property Report newsletter, W9July14

Auckland Council’s long-term plan is under review, and it’ll take 11 months to get through the process. It’s started with some suggestions of cuts in the kinds of service everybody notices, and some yelping….

It’s probably impractical now to do what I think needed to be started last year – a thorough examination of what the council ought to do, fitting what it does to that formula, adding pieces (big pieces) to transform the region and taking away what no longer fits….

I thought councillors were going to embark on that sort of exercise a year ago, but they got bogged down in a bit of adding & subtracting. This year’s review of the long-term plan, though, is an opportunity for thinking outside the box….

It starts with councillors, local boards, executives from the various council organisations – but there’s no reason the public can’t throw their ideas into the moulding exercise too. That’s as in ideas that transform – hence my heading today, Auckland: time to reinvent the wheel on a tighter budget ….

I’ve been filing stories on the website frequently over the last 2 days, so some of you will have picked up on a number of them through Twitter, FaceBook & LinkedIn, but I’ve added a few more overnight & this morning….

They include a local board decision last night to advocate for full notification of a Great North Rd apartment block proposal….. PFI’s Wellington purchase…. the first peer-to-peer licence…. a couple of economic pieces….. one auction result…. and, at the bottom of the newsletter, the huge foreign investment in US housing….

And the last newsletter, sent out on Monday:The Bob Dey Property Report newsletter, M7July14

Now, the classifieds….

For Sale:  Former bank building offering 654m²  of quality vacant showroom, office and storage space on high exposure 1,070m²  Penrose corner site.

Penrose Industrial – 9m Stud – Presented like new!

On the move updated…..

On the move, July 2014

In the Neighbourhoods…..

Isthmus west – Grey Lynn: Local board calls for 7-storey Great North Rd proposal to be notified

South Island – Lakes: Corrected: Porters buy Kawarau River Station at auction (correction to detail at end of story regarding Five Mile)

In the Sectors…..

In Forward thinking…..

Councils – finance: Auckland: time to reinvent the wheel on a tighter budget

In Gainz…..

Economy – housing costs: NZ house prices stand out in IMF comparisons

Finance – banks: Roberts’ HarMoney gets first peer-to-peer licence

Banking contract the next Government procurement change

Securities NZ – NZX: Ministerial exemption gives green light to NZX growth market

PFI: PFI signs purchase & tenancy for new Wellington building

In Market….

Agency: Hamilton agency opens body corporate management service

Colliers: Industrial units sell at similar prices, vacant or tenanted

Residential – investment: Dickens says shift from yield to CPI link holding back residential rents

QV: QV housing index shows mixed picture but overall Auckland rise continues

Propbd on Q: Propbd on Q M7July14 – Council aims axe at rates & spending, housing index still rising sharply

World property: World property W9July14 – Huge rise in US home sales to foreigners

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