Archive | Sectors

Net migrant inflow just short of 72,000/year

The net inflow of migrants dropped slightly from April to May and fell 36 short of 72,000 for the year to May, according to Statistics NZ’s monthly figures released yesterday.

Statistics NZ also released a study yesterday of migrants from other countries using the easier entry to New Zealand as a backdoor way of getting into Australia (link below). That flow spiked in 2001, when Australia changed its welfare rules, and has fluctuated since.

The present rise in net immigration began in 2014 and the net inflow has doubled since then.

The annual net inflow hit 71,885 in April and rose to 71,964 in May, but the net inflow for the month of 3117 was down from April’s 3406.

Compared to last year’s figures, the monthly net inflow was up by 79 on last year and up by 3532 on the previous year.

The number of migrants arriving on student visas has dropped by 4000 to 23,700 for the year, principally affecting migration from India, which dropped by a net 4681. Net immigration from the UK jumped by 2592 to 6534 for the year, and from South Africa by 1801 to 4729. The net inflow from China was up by 551 to 10,218 for the year.

Net migration into Auckland for the month was 1899 (1493 last May), and for the year 36,270 (31,623).

Link:
Statistics NZ paper, 22 June 2017: Backdoor entry to Australia

Attribution: Statistics NZ tables & release.

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North Shore’s Snell prevents total Cantabrian cleanup at auctioneering competition

Christchurch contestants took out 3 of the top 4 awards at the Real Estate Institute’s auctioneering competition in Auckland this week.

Ned Allison (Harcourts Grenadier) won the senior competition and Mark McGoldrick (Harcourts Canterbury, Ilam) was runner-up. They’ll represent New Zealand at the Australasian auctioneering championships in Adelaide in September.

In the “rising stars” competition for the Colin Brown Memorial Cup, Tim Snell (Harcourts Cooper & Co East Coast Bays, Auckland) won and Caleb Griffioen (Gold Real Estate, Christchurch Parklands) was runner up.

The annual championships drew 21 senior entries and 18 for the rising stars contest.

Real Estate Institute chief executive Bindi Norwell said the competition was wide open as the reigning champions didn’t enter.

Attribution: Institute release.

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QV says home-building costs up average 3.5% in year

Quotable Value Ltd said today the average cost of building a new home in New Zealand’s 4 largest cities had risen on average by 3.5% in the year to May, and by 25.5% since the previous price peak of 2007.

The assessment is by QVcostbuilder, an arm of state-owned enterprise Quotable Value Ltd, which provides the latest construction cost data to the property & construction industries through an online subscription web platform tool.

It also shows the average cost of building a standard 140m², 3-bedroom, one-bathroom home rose most in Wellington, up 2.43% over 12 months to an average $258,000. Auckland rose 2.32% to $272,000, Dunedin rose 2.12% to $254,000 and Christchurch rose 1.92% to $277,375.

QV national spokesperson Andrea Rush said building costs rose most in Wellington as its house price index jumped more than 20%.

She said costs for larger houses (between 200-600m²) increased by a higher percentage – 3.39% over the year, 38.6% since 2007.

The averages exclude the cost of land, demolition of existing structures, additional costs due to building code changes, structural requirements, external works, utilities connections, balconies & covered ways, professional & council fees & gst.

Attribution: QV release.

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PFI vote strongly in favour of internalisation, and building sale settles

Property for Industry Ltd shareholders voted 94.4% in favour yesterday of paying $42 million to internalise the NZX-listed company’s management.

The same management team will stay in place, making some wonder why the transaction was needed at all.

But deputy chair Anthony Beverley said benefits included the control on expenses, dealing with conflicts and strategic benefits. He said the return to shareholders would from the investment would flow through reduced expenses and higher profits.

NZ Shareholders Association chair John Hawkins told the PFI meeting the association had seen lower numbers than the 6.5% accretion to shareholders that the independent report by Northington Partners ascribed to the internalisation, but all the other predictions were still accretive.

And then he added: “I am confident that if shareholders reject this deal the management contract will be sold to a third party – that’s from some of the parties we have spoken to.”

And that’s the crux of the internalisation. PFI had an opportunity to control the future of its management, whereas sale of the management contract to a third party could have led to a far different future.

There were some quibbles that owners of the present manager, PFIM Ltd, would switch to internal contracts yet would still be allowed to conduct other business from the company office, but Mr Beverley said the external contract allowed that and the new contract would require them to give PFI priority.

The vote was held at PFI’s annual meeting, where the operational highlight was a presentation by general manager Simon Woodhams on the returns the company had achieved from its $28.5 million acquisition of the Sistema Plastics Ltd portfolio of 5 Penrose properties in 2015.

Sistema moved last year to new premises at Ihumatao, near Auckland Airport, after a period leasing back its Penrose premises. PFI has signed long-term leases on 3 of the Penrose buildings, sold one and has the fifth building still vacant.

The sale of 65 Hugo Johnston Drive to Crown Equipment Ltd for $14.25 million, up from PFI’s August 2015 acquisition price of $11.01 million, settled on Monday.

Earlier stories:
29 May 2017: Northington sees big gain for PFI from internalisation
24 May 2017: IRD makes tax ruling relating to PFI internalisation
1 May 2017: PFI sells one & leases 3 of 5-property Penrose portfolio
3 April 2017: PFI proposes internal management after 6 years of external

Attribution: Annual meeting, company releases.

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NZF passes resolutions to become Blackwell

NZX-listed shell company NZF Group Ltd’s shareholders passed all 9 resolutions at a special meeting yesterday, called to implement a capital & organisational restructure which will see it formally become part of Taiwanese wholesale investor Chai Kaw Sing (Michael Chai)’s Blackwell Global Group.

The restructure is scheduled to be settled in the second week of July.

Under the proposal, NZF will change its name to Blackwell, Mr Chai & 2 local associates – real estate agency owner James Law & lawyer Ewe Leong Lim – will become directors, current director Mark Thornton will revert to his role as chief executive and the 2 directors who’ve worked on keeping NZF alive, chair Sean Joyce & lawyer Craig Alexander, will stay on as independent directors.

Mr Chai will invest $2.5 million (at 0.8 of a cent/share) to capitalise NZF and will pay the existing directors the fees they haven’t taken while they’ve been searching for a future for the company (about $75,000 each).

As Blackwell, NZF will launch a new finance company operation, acquire assets related to a derivative trading operation and launch a new derivatives trading operation.

It will raise new debt through the issue of up to $3 million of convertible notes and secure third-party debt finance through the issue of up to $6 million of secured bonds.

Earlier story:
9 June 2017: Listed shell NZF calls meeting on future as Blackwell finance & derivatives business

Attribution: Company release.

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2 sales out of 9 auctioned as views diverge on apartment & unit market direction

2 of the 6 cbd apartments and none of the 3 suburban units auctioned at Barfoot & Thompson yesterday sold under the hammer.

The wide margin between the top bids and subsequent pricing of unsold units indicates the divergence between vendor aspirations and the direction buyers think the market is moving in.

CBD

Albert St

Manhattan, 105 Albert St, unit 11A:
Features: 80m², 2 bedrooms
Outgoings: rates $1544/year including gst; body corp levy $8035/year
Outcome: sold for $525,000
Agent: Aaron Cook

CBD east

The Beach, 85 Beach Rd, unit 506:
Features: 49m², one bedroom, balcony
Outgoings: body corp levy $3667/year
Income assessment: $460/week fixed until September
Outcome: passed in at $350,000, back on market at $479,000
Agents: Bett Shao & Rico Zhao

Learning Quarter

Silo, 23 Emily Place, unit 4L:
Features: 2-bedroom loft, secure parking space
Outgoings: body corp levy $829/year
Outcome: passed in at $500,000, back on market at $699,000
Agents: Stephen & Leo Shin

Uptown

Urba, 5 Howe St, unit 603:
Features: 55m² including balcony, 2 bedrooms
Outcome: passed in at $450,000, back on market at $625,000
Agent: Stephen Chang

Victoria Quarter

Heritage Farmers, 35 Hobson St, unit 628:
Features: 32m² air-conditioned studio
Outgoings: body corp levy $1833/year
Outcome: sold for $255,000
Agent: Livia Li

Imperial Gardens, 135 Hobson St, unit 218:
Features: 2 bedrooms, storage locker, parking space
Outcome: auction postponed until 29 June
Agents: Wendy Feng & Jack Li

Isthmus east

Onehunga

97J Mays Rd:
Features: 2-bedroom unit, garage
Outcome: withdrawn from auction
Agents: Paula Boontueng & Young Kim

Isthmus west

Eden Terrace

Fleetwood, 19 Fleet St, unit C6:
Features: 95m², 2 bedrooms, separate dining & living spaces, deck, storage unit, covered parking space, post-remediation code compliance certificate issued April 2016
Outgoings: body corp levy $3982/year
Outcome: passed in at $650,000, back on market at $719,000
Agents: Zoran Farac & Stephen Shin

Mt Albert

51 Seaview Terrace:
Features: cross-lease, quarter share in 1195m², 60m² one-bedroom unit, deck, carport
Outcome: no bid
Agents: Samantha Chaudhry & Leo Perera

Sandringham

22 Coyle St, unit 3:
Features: 2-bedroom unit, garage
Outgoings: body corp levy $789/year
Outcome: passed in at $825,000
Agent: Helen Lam

North-west

Glendene

33 Butterworth Drive, unit 1:
Features: cross-lease, half share in 616m², 2-bedroom unit, study, garage
Outcome: no bid
Agent: Tristan Young

Attribution: Auctions.

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2 sell, and then the auction success stopped

A leasehold unit in the Scene 2 apartment block on the eastern fringe of the Auckland cbd and a unit up the hill in the Quadrant sold at Ray White City Apartments’ auction yesterday, and then the other 5 on the auction list were passed in.

Those not sold included 2 units in the new Ramada Suites across the road from the park-&-ride at the Albany bus station, and a unit in City Gardens, where work is yet to start on a remediation project.

CBD

Albert St

City Gardens, 76 Albert St, unit 9F:
Features: 59m², 2 bedrooms, balcony, remediation programme still to be undertaken
Outgoings: rates $1227/year including gst; body corp levy $3706/year
Income assessment: $360/week current
Outcome: passed in at $360,000
Agent: James Mairs

Learning Quarter

Pinnacle, 18 St Martins Lane, unit 1401:
Features: 69m² unfurnished sub-penthouse, 2 bedrooms, balcony, parking space
Outgoings: no rates assessment yet; body corp levy $4416/year
Income assessment: $650-680/week furnished
Outcome: sole bid was $650,000 from vendor as an indicator, passed in
Agents: May Ma & Mark Li

The Quadrant, 10 Waterloo Quadrant, unit 1014:
Features: 32m², one bedroom, balcony, parking space on separate title, unit out of the hotel pool & vacant
Outgoings: rates $1173/year including gst for unit, $127/year for parking; body corp levy $3687/year for unit, $1166/year for parking
Income assessment: $500-550/week furnished
Outcome: sold for $463,000
Agents: May Ma & Mark Li

Cintra, 3 Whitaker Place, unit 17C:
Features: 57m², one bedroom,
Outgoings: rates $1797/year including gst; body corp levy $5114/year
Income assessment: under Crown on Cintra Lane hotel management, appraisal $480-520/week furnished
Outcome: passed in at $210,000
Agents: Simon Harrison, Damian Piggin & Daniel Horrobin

Quay Park

Waldorf on Scene, Scene 2, 18 Beach Rd, unit 1406:
Features: leasehold, 75m², 2 bedrooms, parking space
Outgoings: rates $1683/year including gst; body corp levy $5285/year, ground lease $7249/year
Outcome: sold for $201,000
Agent: James Mairs

North-east

Albany

Ramada Suites, 254 Cornerstone Drive, unit 205:
Features: 34m², one bedroom, parking space
Outgoings: no rates assessment yet; body corp levy $1791/year
Outcome: passed in at $335,000
Agents: Simon Harrison, Damian Piggin & Daniel Horrobin

Ramada Suites, 254 Cornerstone Drive, unit 301:
Features: 74m², 2 bedrooms, 2 bathrooms, parking space
Outgoings: no rates assessment yet; body corp levy $3180/year
Income assessment: vacant
Outcome: passed in at $610,000
Agents: Simon Harrison, Damian Piggin & Daniel Horrobin

Attribution: Auction.

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3 intensive homes sell at auction

3 of 8 intensive suburban homes – units, townhouses & cross-leases – were sold at Barfoot & Thompson’s city auctions yesterday. Of the total 20 residential properties on offer (including standalone homes), 5 were sold.

Isthmus east

Mt Wellington

80 Banks Rd, unit 4:
Features: cross-lease, 1/6 share in 2612m², 4 bedrooms, garage
Outcome: passed in at $700,000
Agent: Hamish Hargrave

56 Ferndale Rd, unit 9:
Features: 2-bedroom unit, storage shed, carport
Outgoings: body corp levy $2108/year
Outcome: no bid
Agents: Jane Wang & Angela Qi

51 Ireland Rd, unit 20:
Features: 2-level 2-bedroom townhouse, study, offstreet parking
Outgoings: body corp levy $2773/year
Outcome: sold for $570,000
Agent: Sue Su

5 Lynton Rd, unit 4:
Features: cross-lease, quarter share in 1052m², 2-bedroom unit, carport
Outcome: no bid
Agents: Rain Diao

Parnell

65 Gibraltar Crescent:
Features: 3-bedroom townhouse, 2.5 bathrooms, double internal-access garage
Outcome: no bid
Agent: May Zhang

Remuera

10 Ingram Rd:
Features: cross-lease, half share in 807m², 4 bedrooms, double internal-access garage
Outcome: passed in at $1.96 million
Agents: Cici Wang & Carey Liu

Isthmus west

Grey Lynn

2A Wilton St:
Features: 2-level 2-bedroom unit, offstreet parking
Outcome: sold for $880,500
Agent: André Boddé

Mt Roskill

2 Fearon Avenue, unit 2:
Features: 2-bedroom unit, conservatory, carport
Outcome: sold for $652,000
Agents: Jim Liu & Cicy Zhu

Attribution: Auctions.

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3 ex-Masala restaurants nearly make $8 million forfeiture order price tag at auction

3 restaurants in the former Masala chain were sold for $7.875 million at Bayleys’ auction yesterday, just short of a forfeiture order made in February.

Image above: Dining room of the former Masala restaurant in Mt Eden.

A Glen Eden shop with the Mad Butcher as tenant and a Dilworth apartment at the foot of Queen St were also sold under the hammer.

The restaurants, owned by JKK Holdings Ltd (Supinder Singh & Daisy Kaur) were taken to auction by the Official Assignee under the Criminal Proceeds (Recovery) Act after Justice Rebecca Edwards agreed in the High Court to an $8 million assets forfeiture order between the Commissioner of Police and 8 companies & 2 individuals associated with the Masala restaurant chain.

Justice Edwards said in her decision approving the settlement: “The settlement sum of $8 million represents almost all of the unlawful benefit said to have been derived from the tax evasion offending. The settlement sum is expected to be met in full through the sale of restrained properties.”

The 2 individuals, Joti Jain & Rajwinder Singh Grewal, were sentenced in 2015 to home detention and ordered to pay reparations on a long list of immigration & exploitation charges.

In March, Ms Jain was reported to have left New Zealand ahead of an appeal against being deported, but she was in the auctionroom yesterday.

All 3 restaurants in Mt Eden, Stanmore Bay & Birkenhead attracted multiple bidders. The properties were marketed for sale on an “as is where is” basis and subject to occupancy.

Apartments

CBD

Queen St

Dilworth, 22 Queen St, unit 5L:
Features: one bedroom, high stud
Outcome: sold for $530,000
Agents: Julie Prince & Diane Jackson

Commercial

Isthmus west

Mt Eden

510 Mt Eden Rd:
Features: 554m² section, 200m² restaurant in converted villa at corner of Disraeli St in Mt Eden village, additional 206m² downstairs area gives potential to split risk
Outcome: sold for $3.61 million on “as is where is” basis, subject to occupancy
Agents: Scott Kirk, Adam Curtis, John Algie

North-east

Birkenhead

188-192 Hinemoa St:
Features: 835m² site, development potential, 280m² restaurant in converted villa, wraparound covered deck, vacant office area below restaurant previously used as accommodation
Outcome: sold for $2.535 million on “as is where is” basis, subject to occupancy
Agents: Adam Curtis, John Algie & Damian Stephen

Stanmore Bay

195 Brightside Rd:
Features: 1783m² site, 276m² restaurant
Outcome: sold for $1.73 million on “as is where is” basis, subject to occupancy
Agents: Jeremy Milton, John Algie & Adam Curtis

North-west

Glen Eden

5 Oates Rd, unit 5:
Features: 292m² corner unit in block of 13 shops, dual access, split internally between retail, office storage, meat processing & cool storage, opportunity to split or occupy the tenancy
Rent: $92,040/year net + gst from established tenant, the Mad Butcher
Outcome: sold for $1.375 million at a 6.7% yield
Agents: Adam Curtis, Adam Watton & Oscar Kuang

Earlier story:
28 February 2017: $8 million Masala assets forfeiture agreed

Attribution: Auction.

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2 apartments sell at City Sales auction

An apartment in The Peaks on Victoria St (pictured) was sold under the hammer at City Sales today, and one in the Harvard on Hobson St was sold shortly after the auction. An Eden Terrace unit was passed in.

CBD

Victoria Quarter

Harvard, 147 Hobson St, unit 3I:
Features: 37m², 2 bedrooms
Outgoings: rates $1101/year including gst; body corp levy $4003/year
Outcome: passed in at $342,500, sold shortly after auction for $345,000
Agents: Habeeb Urrahman & Steve Kirk

The Peaks, 117 Victoria St West, unit 5B:
Features: 145m², 3 bedrooms, 2 bathrooms, wraparound deck, storage locker, parking space
Outgoings: rates $2292/year including gst; body corp levy $7153/year
Outcome: sold for $1.14 million
Agent: Iona Rodrigues

Isthmus west

Eden Terrace

Virginia, 43 Virginia Avenue East, unit 203:
Features: 48m², 2 bedrooms, deck, parking space
Outgoings: rates $1232/year including gst; body corp levy $4458/year
Income assessment: $475-500/week
Outcome: passed in at $460,000
Agent: Trisha Shanaghan

Attribution: Auction.

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