Archive | Archive – local property

Snapshot on local property, week to 16 December 2001

15 December 2001

National Property Trust Capital Ltd’s $25 million capital notes issue closed fully subscribed on Friday. National Property Trust will use the proceeds to redevelop the Eastgate shopping centre in Christchurch.

12 December 2001

Manukau City Council’s compliance staff pride themselves on fast turnaround of applications, North Shore City’s are improving from a wayward decentralised position, Papakura District Council is taking the whole business back inhouse and Rodney District Council is considering the outrageously proper — giving refunds if it doesn’t perform quickly enough.

C grade central business district office buildings led the Property Council’s investment performance index for office property in the September half though capital movement in that sector, as in all others, was downward. Details: C grade outperforms other office sectors

A private New Zealand investment company has bought the West Plaza building & annex at the foot of Albert St in downtown Auckland. The price was not disclosed. The building was owned by National Mutual, now part of the Axa group, since construction 26 years ago. Lindsay Jackson of CB Richard Ellis completed the sale.The 20 office levels, ground and mezzanine retail have a total 8454m² net lettable area earning about $1.2 million/year with capacity to earn more than $1.5 million, excluding gst. The 1999 government valuation was $23.5 million, including $8.3 million for the total site of 2246m² ($3696/m² land). Apart from its shape, West Plaza has always been distinctive for its multitude of small office tenancies. Net floor areas are about 423m². The annex has an Albert St shop and provides the building with 102 parking spaces off the foot of Federal St.

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Snapshot on local property, week to 8 July 2001

Latest: Fletcher Building secures acute health services project, Jasmax trio win urban design competition, Force sells theatre centre to Doole, revamped WestCity opens, “tentative” OK for Sky City’s convention centre, Australasian Property trying to buy something, Ariadne selldown.

8 July 2001

Auckland Healthcare has awarded the $180 million contract to build a new acute services block at Grafton to Fletcher Building Ltd, which had been working in a preferred contractor role for the previous 18 months to complete design development.

Jasmax architects Euan MacKellar, Marko den Breems and Kendon McGrail were named joint winners of an urban design competition, Perfect Worlds, sponsored by Auckland City Council, the Institute of Architects and Fletcher Building Ltd. Commended were Tracey Ogden, a North Shore City Council urban designer, and Christophe Barkalaya, an Auckland University architecture student. The competition sought proposals for intensive residential and mixed-use buildings integrated with transport and social networks, on one of three sites — Lion Breweries in Khyber Pass, a Housing NZ complex opposite Motat and Panmure’s Clifton Court. All the winners chose the brewery site.

6 July 2001

Force Cinemas Ltd entered an unconditional agreement on Thursday to sell the St James Centre — the block of three former cinemas and retail space opposite the Force Entertainment Centre on Queen St — to developer Paul Doole for $8.5 million. A $500,000 deposit has been paid, with settlement due on 31 July. Force Cinemas is a joint venture between Force Corporation Ltd, now owned by Sky City Ltd, and Village Roadshow Cinemas. Before the takeover of Force, the company got resource consent to enable major development of the site, including a 30-storey tower round the St James, with the other old cinemas, the Regent and West End, being demolished. Force expects to get about $4 million of net proceeds.

5 July 2001

Westfield NZ Ltd officially opens its revamped Westfield Shoppingtown WestCity in Waitakere City this morning, starting early with a Maori blessing. The $80 million project took 16 months and increased the centre from 16,000m² to 28,500m². The number of specialty retailers rose from 92 to more than 130. Westfield NZ director John Widdup said the Sydney-based mall specialist, which took over the St Lukes Group, was “set to redefine this country’s retail and leisure experiences.” At WestCity it has introduced its entertainment and lifestyle precinct design, “The Street,” it has an eight-screen Village Force cinema complex with stadium seating and digital sound, and it has a bowling alley.

4 July 2001

The Casino Control Authority has “tentatively” agreed to Sky City Ltd’s proposed 2500m² conference centre across Federal St from the existing Sky City casino, with the probable condition that the casino company formally set up a responsible gambling programme. Sky City has such a scheme of its won creation, though it didn’t have to when it gained its operating licence in 1994. The new five-storey conference centre will have a 1450m² banquet room capable of seating 1000 people, and will have parking, shops and, it’s proposed, an airbridge to the existing casino building. Projected cost is $37 million for a 12-month construction timeframe. Another six months would be spent expanding the gaming area, putting 230 machines and 12 tables in the existing conference area.Sky City has extended its resource consent for the new centre between Albert and Federal Sts.

2 July 2001

Australasian Property Holdings Ltd, listed in New Zealand but with its assets at Katoomba, in the Blue Mountains west of Sydney, said it was investigating a major acquisition. Information on progress should be released by the end of July.

Ariadne Australia Ltd has an unconditional contract to sell its half share of the ANZ Centre in Brisbane to its partner, Selangor Properties Berhad, for $A38.63 million. Ariadne should get $A13 million net of debt at settlement on 20 July. Ariadne has also sold its interests in two Brisbane development sites.

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Snapshot on local property, week to 24 March 2002

24 March 2002

National Property Trust has issued a statement to unitholders on exercise of their options. Under the 18 October 1999 investment statement, unitholders were offered units with attached options. The 3.98 million options were issued for no consideration and are exercisable on 31 May. Options not exercised by then will lapse. The issue price for units issued under the option programme will be 90% of the weighted average price of units sold on 5 consecutive days between 4 April & 3 May, to be selected by the trust manager.

18 March 2002

Metlifecare Ltd increased its aftertax operating surplus from $474,000 to $7.2 million in the December year on revenue down 4.5% to $82.2 million and operating a surplus before unusuals & tax up 133.4% to $6.9 million. Unusuals cut the surplus in 2002 by $2.26 million, but added $623,000 this time. Earnings/share rose from 0.8c to 9.7c. The chairman, Peter Fitzsimmons, said the significant improvement resulted from margin growth & reduced operating costs. Debt was cut by a $21 million rights issue, which also helped accelerate planned activities. “A successful development programme saw Metlifecare continue to realise the value held within its existing land bank, with considerable investment made in upgrading & refurbishing amenities at locations throughout the country,” Mr Fitzsimmons said.

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Snapshot on local property, week to 24 August 2003

22 August 2003

Sale of the vacant National Bank building in central Christchurch is symptomatic of a trend for investors to buy even without cashflow, says Glen Steele of Simes Real Estate. He argued the price — $1.07 million under the hammer, well above expectations – also illustrated the benefits of the auction process in a strong market. The Simes marketing campaign attracted interest from owner-occupiers, investors & developers, and 10 of them were bidders on auction day. Simes is now leasing the building.

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Snapshot on local property, week to 10 November 2002

9 November 2002

The National Property Trust has declared a 2.25c/unit interim dividend, record date 22 November, payable 6 December. When it embarked on an acquisition/capital-raising programme a year ago, National said it would make minimum gross returns of 9c/unit over the next 2 years from income & capital, which might mean adjusting distributions in subsequent years.

8 November 2002

Auckland City Council’s transport committee has agreed to transfer several parcels of land within the Avondale-Southdown rail corridor to Transit NZ for the State Highway 20 extension at Mt Roskill, but only once various parties are satisfied adequate provision has been made for freight & passenger services along the rail line. Committee chairman Greg McKeown said the rail line would create a more direct link between Manukau & Waitakere. “It would link people to important employment areas in Mt Roskill, Penrose & Onehunga, creating opportunities that could provide significant economic benefits to the Auckland region,” he said.

4 November 2002

Wellington City Council has granted Wellington International Airport Ltd resource consent to build a retail centre on the western side of the airport.

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Snapshot on local property, week to 3 June 2001

Latest: Axa sells funds management to Deutsche, Sky City expansion hearing on, Southern takes 22.7% of Tasman Agriculture, 2020 vision for North Shore, handbook on sewage disposal options, Taradale starts Greenstone Terrace.

2 June 2001

Axa Asia Pacific Holdings Ltd has entered a binding agreement to sell its direct property funds management businesses to Deutsche Asset Management. Axa will sell Axa Australia Property Management, the responsible entity for the listed Axa Australia Diversified Property Trust and the unlisted NMFM Property Fund. Deutsche will also provide direct property management services for Axa portfolios in Australia and New Zealand.

30 May 2001

Sky City NZ Ltd’s dozen witnesses began their evidence today and will finish tomorrow at the Casino Control Authority’s hearing of the company’s application to expand its gaming space into the convention floor, which will be replaced by a new convention centre across Federal St. The only opponent is the Compulsive Gambling Society, which made no appearance during the early sessions of the hearing. A ruling on the application could be made next week.

29 May 2001

Southern Capital Ltd has taken 22.736% of Tasman Agriculture Ltd from Dairy Holdings Ltd, a company headed by South Canterbury farmer Alan Pye and Timaru accountant Allan Hubbard, which agreed in March to take Brierley Investments Ltd’s 66.1% stake. Mr Pye had been the biggest buyer as Tasman Agriculture sold down its portfolio last year and early this year. The Southern price is $1.68/share less any distribution to Brierley, due on 15 June.

North Shore City Council has issued a newsletter asking the city’s residents for their 2020 vision, exploring scenarios and ideas on how the Shore can be developed. The ideas for life in 20 years have also been discussed at community workshops, in response to the regional growth strategy. Details are on display at city libraries and on the council’s website. The city strategy is due to be completed in July.

The Environment Ministry will spend $200,000 on a handbook to advise local bodies on sewage treatment and disposal options. Green Party co-leader Jeanette Fitzsimons said the Budget initiative, proposed by the Greens, would save councils all over the country from duplicating the same work from scratch. “Small communities throughout New Zealand are facing difficult decisions between on-site treatment and reticulation, land and water disposal, and a range of other options which include a number of new technologies,” she said.

Local firm Naylor Love Ltd has started construction of Taradale Properties Ltd’s $15 million terraced housing village on a 1.3ha Frankton Rd site in Queenstown, Greenstone Terrace, which will have 56 2/3-bedroom terraced units and seven three-bedroom homes. Taradale began a similar-sized project on the shores of Lake Rotorua in March — the Marama Point lifestyle and holiday investment on the Ohau Channel.

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Snapshot on local property, week to 2 February 2003

2 February 2003

Australian property trust General Property Trust wants to stop being listed in New Zealand because nobody has ever traded the stock here and only 0.3% of its units are held in New Zealand. The NZ Stock Exchange agreed to stop quoting it from the close of trading next Monday, 10 February.

1 February 2003

The Stock Exchange’s market surveillance panel has told Paramount Property Trust it doesn’t have to provide a half-yearly report because it listed only on 4 December.

Metlifecare Ltd went unconditional on 31 January on the sale of its Epsom facility, but the contract to sell its Browns Bay property remains conditional pending finalisation of a minor matter. The company said it expected to announce that sale in February. The conditional contracts were announced on 16 December.

29 January 2003

Calan Healthcare Properties Trust has a 2c/unit gross taxable distribution for the 2nd quarter, to December 2002. Net distribution is 1.34c/unit after 0.1281c resident withholding tax & 0.5319c imputation credits. Payment is scheduled for 3 March.

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Snapshot on local property, week to 16 November 2003

16 November 2003

Submissions on the Architects Bill close on Friday 5 December. The bill will repeal the architects Act 1963, but statute protection of the title “architect” would continue. The bill will require consumers to be better informed and will introduce ongoing competency testing.

15 November 2003

Hayley Media Ltd (Andy Hobbs & David Silver) will hold a property & investment expo in Auckland next May, organising it in association with an established Australian show series. Event manager Tim Soper said the expo would cater for more than 100 trade exhibits. The expo will be held on Friday-Saturday 28-29 May at the Ellerslie Convention Centre.
Website: Property & investment expo

Simes business broker Geoff Smart says businesses have joined residential and commercial property in being snapped up. Businesses worth $300,000-1 million are the most popular in Canterbury, he said.

11 November 2003

All 17 major lenders surveyed by the Real Estate Institute have increased their fixed-rate mortgages, and on all terms, but have left their floating rates unchanged. The survey, for the month to 10 November, showed fixed rates for 1-5 years rose 5 to 51 points. ANZ and Kiwibank increased their 6-month rates 15-20 points, but other lenders left that term unchanged. Floating rates range from 6.55-7.1%. Fixed rates range from 6.5-6.95% for 1 year, 7-7.4% for 2 years, 7.2-7.6% for 3 years, 7.4-7.8% for 4-5 years.

The 1 notable line out of Fletcher Building Ltd’s annual meeting came from Hugh Fletcher, now a non-executive director who addressed the meeting briefly before being voted back on to the board. He understood Fletcher Residential’s profit last year was the best in real terms in the 95 years since his grandfather built his 1st house in Dunedin. Chairman Rod Deane said the expected slowdown still hadn’t come and, “if there is to be a slowing in activity levels, it is now unlikely, in our view, to be in time to have a material impact on this year’s earnings.”

Skycity Auckland will start a promotional roadshow for its 5-level convention centre in Wellington tomorrow, followed by an industry function for professional conference organisers, key associations & corporate event organisers at St Matthews in the City in Auckland on Wednesday 19 November. A skywalk is under construction between Sky City’s existing casino & hotel across Federal St to the new convention centre, which is scheduled to open next April. It will have banquet capacity for 1000 and cocktail capacity for 2000. The $135 million development includes the $75 million, 316-room, 15-level, Qualmark 5-star Skycity Grand Hotel, due to open in 2005. It & the existing hotel will offer nearly 700 rooms.

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Snapshot on local property, week to 22 February 2004

20 February 2004

The AMP NZ Office Trust’s $62 million 1:7 unit buyback information document will be mailed to unitholders on Wednesday 25 February. The buyback is at 87c/unit. The trust understands its 2 major shareholders, Ronin Property NZ Ltd holding 30% & the AMP Property Securities Fund holding 26%, intend to accept the buyback offer for at least their pro-rata shares.

Holders of Urbus Properties Ltd convertible notes have the right to convert all or part of their notes into ordinary shares on 5 April, the next election date. Urbus said notice of conversion must be received by the Urbus Securities Registrars, Private Bag 92119, Auckland, by 5pm on Thursday 25 March. The notes will be converted on a 1:1 basis. Urbus said noteholders should be aware the current market price of the shares (89c at the close on Friday) is less than the 92c principal amount for which the notes were issued and the price that will be paid to noteholders on the maturity date (30 March 2007), and the shares issued on conversion won’t carry any dividend or distribution rights for the March half year. Holders of unlisted mandatory convertible notes also have the right to convert all of their notes in any 1 class into shares on their next election date, 31 March 2004, also on a 1:1 basis and also without dividend rights. The 14 mandatory convertible notes have all traded infrequently, in a wide price spread.

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Snapshot on local property, week to 11 March 2001

Latest: Francis agrees to sell Force, censure for Savoy, Newmarket profit falls 30%, Damba’s fortunes rise, Servcorp takes PWC Tower floor, bigger loss for Australasian Property, Restaurant Brands sales up 10%, Kiwi Income secures development trust, change at Bayleys Research helm, Britomart work starts, airport Foodtown, work to start on two Taradale projects, Calan earnings up marginally, appraisal explains wide Force value range.

9 March 2001

Force Corp executive chairman Peter Francis headed off to play golf this weekend with a conditional agreement in his pocket for Sky City to buy his 50.19% of the company at 25c/share. Apart from an Overseas Investment Commission technicality which is hardly likely to get in the way, Sky will be free to pursue the rest of the company, offering small shareholders the same price. Mr Francis said Sky had the financial strength and expertise in entertainment, food & beverage and facility management to take Force forward. Settlement should be in two or three weeks. One issue which could get in the way, the dispute between Force and MTM Entertainment Management of Sydney over the Force Entertainment Centre on Queen St, was back in the High Court this week for an evaluation conference behind closed doors.

The stock exchange’s market surveillance panel has censured Savoy Equities for claiming in its half-year report last September that the forecast $5 million net profit for the year was “already substantially realised,” but later deciding to review the profit projection. The panel found the half-year statement misleading. Surveillance panel Philippe Leloir said no other penalty was envisaged for the company or directors: “It’s a public reprimand. What you suffer is that publicly you’ve been censured. That should be quite enough.” He disagreed with me that it was “duck’s back” treatment, saying most directors who found themselves in this predicament worked hard to escape a reprimand.

Newmarket Property Trust’s net profit fell 30% to $2 million on revenue down 21% to $4.5 million and an operating surplus down 34% to 2.28 million in the December half, producing earnings/share down 25% at 2.99c. The trust is beleaguered: it’s looked at several options for the future and rejected them and can’t raise capital without causing dilution because of the 29% unit price discount, 50c compared to net asset backing of 70.4c.

Damba Holdings Ltd has turned in more substantial earnings, wants to invest in a more diverse activity range than its basic furniture business and intends to change its name to Cube Capital at the annual meeting, in Wellington on 26 April. Damba increased sales 5.8% to $19.1 million, increased ebitda 13.5% to $1.3 million, increased net profit after tax by 276% to $224,000 and increased earnings/share by 287% to 1.28c.

AMP NZ Office Trust has leased another floor of the PricewaterhouseCoopers Tower on the Auckland waterfront. International serviced offices company Servcorp has signed up for the 1345m² level 27. Project manager said that took the tower to 59% precommitment, with two more leases close to being finalised. Servcorp offers serviced offices in Australia, Japan, Europe and South-east Asia. It has also taken five floors in the ASB Centre in Auckland.

Australasian Property Holdings Ltd, listed in New Zealand but with its assets at Katoomba in the Blue Mountains west of Sydney, doubled its half-year loss to $156,000. Managing director Tracey Lake said the Escarpments residential and resort hotel project was still in a preconstruction phase with no sales. About 80% of project-related expenses were capitalised. Marketing of the first 14 villas began in February. The company raised $513,000 from a rights issue during the December half and is debt-free.

Restaurant Brands NZ Ltd reported first-quarter sales up 10% to $57.7 million, including a 60% rise in Pizza Hut sales to $14.7 million (from the acquisition of Eagle Boys). Non-KFC sales rose 58% and represent 31% of the total (21% a year ago). KFC sales fell 3% to $39.9 million, or 3.5% on a same-store basis. Starbucks sales were $3 million, 8.4% higher on a same-store basis. Thirteen new Starbucks and three Pizza Hut delcos (delivery and takeaway) will open this year.

Kiwi Income Property Trust secured 95.3% of Kiwi Development Trust by mid-afternoon today, as owners of 25% of the stock poured their acceptances of the takeover in just ahead of deadline. KIPT can now proceed to mop up the remainder under an unconditional offer.

Bayleys Real Estate’s research head, Kerry Coleman, leaves the firm today after 13 years to take over the helm as general manager of the Auckland Catholic Diocesan office. He’ll still have a property role there, getting a better performance out of the church’s portfolio. Mr Coleman’s position as research head at Bayleys will be taken by Gerald Rundle, who has been there for four years.

8 March 2001

Demolition of the annexe behind Auckland’s central post office has begun, and the Britomart carpark will also be demolished by August so work can start on a Queen St railway station. Auckland City Council plans to call tenders for the station midyear.

6 March 2001

Auckland International Airport Ltd will build a 2000m² Foodtown supermarket next to The Warehouse on the corner of George Bolt Memorial and John Goulter Drives. It’s scheduled for completion in September.

Taradale Properties starts construction next week on two tourist-area residential projects — the 80-lodge unit Marama Point, with 48 marina berths, on 4.5ha beside the popular Ohau Channel trout-fishing spot on Lake Rotorua, and Greenstone Terrace in Queenstown, 63 terraced homes. Taradale director said both had attracted strong overseas interest and the two are in similar price brackets — $215,000-319,000 for two- and three-bedroom units at Marama Point, $219,000-290,000 at Greenstone Lodge.

5 March 2001

Calan Healthcare Properties Trust earned $4.36 million, just under 1% more in the December half, on rent up 17.2%% to $7.7 million and total revenue up 13.1% to $7.9 million. Basic earnings fell 18.8% to 3.428c/unit. Debt:gross assets was 31%. The trust said delays at the Ascot Clinics and Waitemata Private projects cut 0.5c/unit from the distribution, which fell from 4c to 3.4c. Calan said it was reconsidering its Australian portfolio, including exiting parts, and might consider shell-only development so it doesn’t have to go to a rights issue.

Grant Samuel & Associates says in its appraisal report on Sky City’s 25c/share offer to take over Force Corp that every $1.5 million shift in value of the Force Entertainment Centre translates to a 1c shift in overall value of Force. The centre’s ownership is still in dispute between Force, which wants to sell, and MTM Entertainment Trust of Australia, which doesn’t want to buy. The centre was valued at $74 million in March 2000, Grant Samuel put current market value at $65 million and gave a post-dustup value range of $57-60 million. Sky needs capitulation by Force’s controlling shareholder, executive chairman Peter Francis, and can then start buying onmarket on Thursday. The appraisal values Force at 22-32c/share.

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