Archive | Precinct Properties

Precinct gets 4.5% revaluation gain with more expected

Precinct Properties NZ Ltd said on Friday its $89 million valuation gain in the year to June had lifted the portfolio value over the $2 billion mark.

The 2017 valuation gain was up 4.5% on the $81 million last year.

The valuations were carried out by independent valuers, are subject to final audit, finalisation of year end book values and will be confirmed in the financial results for the year ending 30 June 2017, to be announced 17 August.

Chief executive Scott Pritchard said that, excluding Deloitte House in Wellington, the overall portfolio valuations were up 5.3% on forecast book values.

The Auckland portfolio gained 6.8%, Wellington 1.5%. Mr Pritchard said those increases were mainly attributable to continued compression in capitalisation rates, together with market rental growth. Deloitte House’s valuation declined by $14 million, with further work completed on remediating & seismically improving the building following the November 2016 Kaikoura earthquake.

“Precinct’s active development pipeline has contributed strongly to the value uplift. Commercial Bay (Auckland) & Bowen Campus (Wellington) ‘on completion’ values have increased by around $94 million to $1.176 billion.

“This was mainly due to an increase in the value on completion of Commercial Bay of $88 million to $941 million. Forecast net profit from both developments combined has increased to be around $250 million, of which about $160 million as at 30 June 2017 has yet to be recognised.”

Attribution: Company release.

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Precinct lifts profit and advances office strategy

NZX-listed property investor Precinct Properties NZ Ltd – now in development mode as it builds & enhances its own sites – lifted net profit after tax by 12.4% in the December half-year.

It reported quick progress from 3 development precincts – Commercial Bay in downtown Auckland, the nearby Wynyard Quarter and, in Wellington, a start on Bowen Campus.

The company announced the leasing of 2700m² on 2 floors in the new PWC Tower at Commercial Bay to law firm DLA Piper, which wants to create new-style workspaces there.

Precinct added to that vibe by announcing it had taken a 50% interest in Generator, which operates 3000m² of co-working space at 3 sites at Britomart.

Image above, October 2016: Looking through Commercial Bay, Precinct Properties’ redevelopment of the Downtown Shopping Centre site (the remains of the building at right, now demolished and with earthworks started for the rail tunnels into Britomart Station); the view from the current PWC Tower across Commercial Bay to the old central post office at Britomart, through the station and on to EY & Westpac’s offices.

Half-year performance summary:

  • Net profit after tax increased by 12.4% to $39.1 million ($34.8 million in 2015)
  • Net operating income increased by 8.7% to $38.8 million (35.7 million)
  • Half-year dividend of 2.8c/share (2.7c/share), representing a 3.7% year-on-year increase
  • Earnings & dividend guidance for the 2017 financial year unchanged at 6.2c/share for earnings and 5.6c/share for dividen
  • Strong financial position with loan:value ratio 20.1% (14.4% at 30 June 2016).

Development progress

Wynyard Quarter:

  • Stage 1 100% leased, 8 months ahead of completion. The $35.9 million Mason Brothers building was the first project to be completed in December and represents a major milestone for the business.

Commercial Bay:

Commercial Bay is the name Precinct has given to the former Downtown Shopping Centre site that ran from Lower Queen St across to Albert St, and the length of that block on Customs St West through to Quay St on the city waterfront.

It also now incorporates the former Queen Elizabeth Square that sat between 2 Precinct-owned buildings along Lower Queen St, HSBC House fronting Quay St and Zurich House on Customs St.

Earthworks are underway for the 39-floor tower on the corner of Customs St West & Albert St and for the city rail link tunnels that will run into Britomart beneath the commercial structures, and accountancy firm PricewaterhouseCoopers has taken naming rights on the tower. PWC has had naming rights on the tower across Albert St & fronting Quay St, also owned by Precinct, since it opened in 2003.

Excavation, retaining & piling are expected to be largely complete by the middle of 2017.

  • Global law firm DLA Piper has committed to 2 floors in the new PwC Tower, taking preleasing by income at the new tower to 64% (from 52% at December 2015) on a weight average lease term of 13.3 years. This commitment takes the amount of space secured outside the portfolio to 8000m² or about a third of committed leases
  • The agreement to acquire Queen Elizabeth Square on Lower Queen St from Auckland Council became unconditional in December and all resource consents were obtained.

Portfolio-wide:

  • Preleasing across all of Precinct’s office developments is now 77%
    99% portfolio occupancy and strong weighted lease term
  • Leasing over the period has been strong, particularly in Wellington, with overall occupancy rising to 99% (98% at 30 June 2016)
  • Weighted average lease term across the portfolio is 5.9 years (6.3 years at 30 June 2016), increasing to 8.1 years after including developments
  • Following the Kaikoura earthquake, a $12 million devaluation has been booked at Deloitte House in Wellington, based on provisional repair estimates.

Enhancing the strategy

Precinct chief executive Scott Pritchard said the increase in net profit was mainly attributable to lower interest & tax expense and a fair value gain in financial instruments. Net operating income, which adjusts for a number of non-cash items, increased 8.7% ($3.1 million) to $38.8 million ($35.7 million at December 2015) or 3.2c/share.

But the performance goes well beyond immediate income: “We achieved a number of milestones across our business and have significantly advanced our long-term strategy.

“We committed to & commenced works at Bowen Campus in Wellington, progressed works at Commercial Bay, including the demolition of the old shopping centre, enjoyed leasing success at Commercial Bay and completed the Mason Brothers building at Wynyard Quarter stage 1.

“The completion of the Mason Brothers building is a major milestone for the business as it is the first project to be completed and sees Precinct begin to transform its portfolio.”

Looking through again, November 2016: This view shows the nose of a cruise ship poking through between 2 Precinct buildings, the HSBC tower at 1 Queen St and Zurich House at 21 Queen St. In the foreground, works have started for the rail tunnels into Britomart from Aotea Station & Albert St, and for the Commercial Bay redevelopment.

At Commercial Bay, DLA Piper’s commitment to 2700m² was a signing from outside Precinct’s existing portfolio, which Mr Pritchard said illustrated the attraction of this cbd waterfront precinct.

The agreement to acquire Queen Elizabeth Square from Auckland Council became unconditional in December. The land is now formally incorporated into the Commercial Bay retail development due to open in late 2018: “This provides certainty to allow the retail leasing programme to advance responding to significant interest from retailers.”

Mr Pritchard said the conditional acquisition of a 50% interest in Generator aligned well with Precinct’s values & its strategy of being a city centre specialist: “It has a strong management team and offers the opportunity to enhance the amenity & service levels that Precinct can offer its clients. It will also enable Precinct to expand its traditional client base with smaller businesses, helping to grow occupancy & demand.”

Interim results                                                                                         

Net property income reduced to $45.9 million ($53.7 million). M Pritchard said: “After adjusting for recent asset sales & foregone income associated with our development projects, like-for-like income was $0.7 million lower than the comparative period. This reduction was a result of the 14 November Kaikoura earthquake. After allowing for the rental abatement at Deloitte House and earthquake-related costs, like-for-like income was slightly higher than the comparative period.

“Precinct’s Wellington portfolio performed very well during the earthquake, with all but Deloitte House being assessed by engineers & reopened within 48 hours.

“Precinct’s structural engineers, Holmes Consulting, were instructed to undertake a detailed structural investigation of Deloitte House, which concluded relatively minor structural damage had occurred. Notwithstanding this, further detailed assessments have identified that the seismic strength of the building is lower than previous assessments.”

Mr Pritchard said an internal review of the 30 June 2016 property valuations indicated no material value movement in the period for all the assets, apart from Deloitte House. The provisional estimated cost associated with remediating the damage and making seismic improvements resulted in the independent valuation of Deloitte House falling by $12.1 million to $33.4 million ($45 million at June 2016).
The value of net tangible assets/share at interim balance date was unchanged from June at $1.17 (June 2016: $1.17).

Link:
Precinct 2017 interim report

Related stories:
17 February 2017: Precinct buys into co-workspace specialist Generator
DLA Piper signs for Commercial Bay
21 December 2016: Precinct’s QE Square purchase unconditional

Attribution: Company release.

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Precinct buys into co-workspace specialist Generator

Precinct Properties NZ Ltd has conditionally acquired a 50% interest in the Generator business, which operates 3000m² of co-working space at 3 areas in Britomart, notably in the revitalised buildings on its Customs St East frontage (pictured above).

Ryan Wilson.

Generator chief executive Ryan Wilson, who co-founded it in 2010, describes it as “a workspace revolution for a new breed of ‘black collar’ workers – a stimulating space that combines leading edge technology with the latest design. Simply put, the coolest office in the world available & affordable for small, creative & entrepreneurial businesses.”

And Precinct chief executive Scott Pritchard said yesterday: “Generator is well aligned with Precinct’s strategy of being a city centre specialist. It has a strong management team and offers the opportunity to expand the market in which Precinct operates and to enhance the amenity & service levels that Precinct can offer its clients.”

Generator’s ‘curated’ community encompasses 107 member companies, including award-winning local startups & beachhead offices for global operators. Mr Wilson said it had grown strongly & consistently over its first 6 years, and the partnership with Precinct came at a perfect time to escalate that growth to a new level.

“Precinct is a serious operator in the property business in New Zealand, and this partnership gives Generator a solid foundation for its own expansion plans and the rollout of an exciting schedule of programmes & services that will support our business ecosystem.”

He said its success had been achieved through the provision of specialised, professional & a highly curated co-working membership experience: “We place a great deal of emphasis on ensuring that members have a discreet, modern, relaxed & comfortable environment in which to work (and socialise), but we also believe there is an equal need to ensure our members can present a more formal & highly professional face to the market when the situation demands.

“This extends both to the range of office environments & the facilities offered. Initiatives in the pipeline include rapid development of GENHUB, our digital community & information platform that allows members to interact with Generator’s services and discover collaboration opportunities, a new in-house investment programme, member incentive scheme & international scholarship programme.

“We are always mindful that we exist because our members choose to be with us, which means we are constantly on the lookout for innovative ways to help our member businesses grow & succeed.”

Earlier story:
15 June 2016: Generator expands again

Attribution: Company release.

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DLA Piper signs for Commercial Bay

Global law firm DLA Piper will move its Auckland office from 205 Queen St to new premises in the PwC Tower at Commercial Bay as of June 2019 as part of plans to redesign the traditional legal workspace.

Listed property investor Precinct Properties NZ Ltd has started development of the 39-floor Commercial Bay tower on the former Downtown Shopping Centre site at the corner of Customs St West & Albert St, and accountancy firm PricewaterhouseCoopers has taken naming rights. PWC has had naming rights on the tower across Albert St & fronting Quay St, also owned by Precinct, since it opened in 2003.

DLA Piper has committed to lease 2 floors in the Commercial Bay tower and said it would create a state-of-the-art, open-plan workplace environment.

DLA Piper’s global co-chief executive, Simon Levine, said yesterday: “Our vision for this new office is to create a modern, flexible workplace using the latest technology to promote collaboration and, most importantly, be a great place to work for our people & our clients. We are investing in this new office design model across the world, for example in Brisbane, Sydney & Manchester.  Our new address in Auckland supports our vision to be the leading global business law firm by combining local expertise & global presence at central business locations.”

DLA Piper’s New Zealand country managing partner, Martin Wiseman, added:  “We are proud to be part of this city-defining project. It’s unlike anything Auckland has seen before. Our new office in the PwC Tower will be a flagship location in Australasia, where visitors locally & from around the world are welcome and do business.”

He said the new design would include high quality spaces for clients, supported by state-of-the-art infrastructure services: “This means our new office will have even more impressive spaces in which to entertain our clients, network with them at events and to deliver quality training. Our environment will be open plan and junior lawyers will have more opportunities to see how experienced practitioners work. This will be an inspiring place to work.

“It is important to us that our clients have the best possible experience when they are working with us. It will give our Auckland office access to a pivotal location, modern working environments, great public transport access and a vibrant lifestyle to help attract & retain talent.”

He said DLA Piper saw many positive outcomes when it moved to 480 Queen St in Brisbane’s cbd, and Auckland would benefit from those learnings.

DLA Piper’s Brisbane office managing partner, Samantha O’Brien, said: “The move involved a change management exercise, and nearly 12 months on we feel the new space fosters more opportunities for collaboration & togetherness. The flexibility & efficiencies of space, and the new technology have impressed everyone – we couldn’t imagine going back to how it was before.”

Attribution: Company release.

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Precinct’s QE Square purchase unconditional

Precinct Properties NZ Ltd said yesterday its purchase of the 1892m² of Queen Elizabeth Square on Lower Queen St has gone unconditional.

The purchase price is $27.2 million, with settlement in early 2018.

Precinct & the council entered into a sale agreement in February 2015 conditional on the land being rezoned.

Precinct chief executive Scott Pritchard said yesterday the conditions to the agreement to acquire the land from Auckland Council had been satisfied. Precinct will incorporate the land into its Commercial Bay retail development, due to open in late 2018, restoring the retail edge to Lower Queen St, where the square had a 50m street frontage.

Mr Pritchard said the development would contribute to the reinvigoration of Auckland’s retail heart.

The company has demolished the former Downtown shopping centre to make way for a 39-storey office tower on the Customs St East-Lower Albert St corner and linked retail through to Queen St, with an internal lane down to Quay St.

Earthworks on the site include preparation for 2 rail tunnels taking the city rail link in & out of Britomart, up Albert St and round to the Mt Eden station. The tunnels will cross the Commercial Bay site and Precinct will also build its parking floors in the same construction programme.

Earlier stories:
20 January 2016: Propbd on Q W20Jan16 – QE Square rezoning approved, Tamaki campus rezoning approved, Furniture City sold, SkyCity guidance up
14 December 2015: Precinct all set to transform Downtown

Attribution: Company release.

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Revaluation handy, but Precinct performance goes far beyond that

Precinct Properties NZ Ltd attributed its profit lift for the June year to revaluation gains, but the company’s performance goes far beyond that fortuitous statistic.

Revaluations were $16.4 million higher than last year, and the company’s bottom line rose by $15.8 million, a 12.9% increase, but Precinct’s construction programme will reshape 2 key commercial areas of Auckland, while it’s just negotiated new Crown leases in Wellington, a major success for both commercial landlords & the Government in rationalising office use in the capital on more efficient rent structures.

Demolition of the Downtown Shopping Centre is underway in preparation for the development of Commercial Bay, which will have a new PricewaterhouseCoopers office tower on the Customs St West-Lower Albert St corner and retail through to Lower Queen St.

That project coincides with the start of works for the city rail link tunnels, which will run under Commercial Bay en route from Britomart round to Albert St.

In the Wynyard Quarter, Precinct has new construction under way for the Innovation Precinct and is also transforming the old Mason Bros industrial building into new office premises.

To do all this, Precinct has secured a new 5-year $860 million facility yet held its gearing down to 14.4%.

Highlights:

  • Net profit after tax, up 12.9% to $138.2 million ($122.4 million in 2015)
  • Net operating income, up 6.6% to $72.8 million ($68.3 million)
  • Property portfolio revaluation gain, $81.2 million ($64.8 million)
  • Net tangible assets/share, up 5.4% to $1.165 ($1.105)
  • Full year dividend, 5.4c/share (5.40c/share), representing a 90% payout ratio
  • Earnings guidance for 2017, 6.2c/share, with the 2017 dividend expected to rise 3.7% to 5.6c/share.

Securing the growth strategy

Precinct began $1 billion of developments in the year to June, with an estimated return on cost of 18%. Highlights of that programme:

  • Secured earnings growth through leasing success, with all office developments now 74% pre-leased on a weighted average lease term of 13.1 years
  • Law firm MinterEllisonRuddWatts announced as tenant at Commercial Bay, moving from the top of Shortland St to the new PwC Tower, taking pre-leasing to 60% by income
  • International fashion retailer H&M secured for the cbd flagship store at Commercial Bay
  • Commitment by the Crown to 68,000m² on a weighted average lease term of 14.6 years at Bowen Campus, Pastoral House, Mayfair House & 3 The Terrace, as well as an extension to the existing lease at 1 The Terrace
  • Achieved 86% pre-leasing at Wynyard stage 1, with Mason Brothers building restoration on track for completion in 4 months and the Innovation Building on track for completion in mid-2017.

Reducing funding risks:

  • Secured a new 5-year $860 million facility, extending the weighted average debt maturity profile to 5.1 years at 30 June 2016 (4.6 years in 2015) and ensuring no refinancing risk during peak development period.

Precinct is in a strong financial position with gearing of 14.4% and sufficient funding capacity to deliver its committed developments.

Strengthened portfolio

  • Weighted average lease term across the portfolio extended to 6.3 years (5.0 years), increasing to 8.2 years when current developments included
  • Record activity levels as 135,000m² leased
  • The portfolio is under-rented by 3.6% (last year 1.8%), Auckland by 6.6% but Wellington at market.

Chief executive Scott Pritchard said yesterday 2 post-balance date signings outshone a brilliant year:  “The operational & financial results for the year, as well as the commitments to Commercial Bay & Wynyard Quarter stage 1, were significant highlights. However, the post-balance date commitment by the Crown to 68,000m² of Wellington office space was arguably the key achievement as it will transform the quality of our Wellington government portfolio.”

Then, yesterday, he announced MinterEllisonRuddWatts’ commitment to the new PwC Tower and said leasing at other Auckland buildings remained strong:

  • HSBC Bank extended its lease in 1 Queen St and committed to relocate in 2019 to 188 Quay St, taking naming rights over the building when PwC moves from there across the road to Commercial Bay
  • Real estate agency Colliers International has also committed to relocate to 188 Quay St, which largely removes the vacancy risk from PwC’s relocation to Commercial Bay.

“Including the Government leasing, our team have leased an impressive 135,000m² of office space in the year, which is equivalent to over 4 PwC Towers. Following this success, leasing risk has substantially reduced, enabling us to have greater confidence in our ability to deliver our long-term strategy & earnings growth.

“We ended the year in a strong position. Our buildings were 98% occupied (98% in 2015) with an overall weighted average lease term of 6.3 years (5.0 years), extending out to 8.2 years when the 3 developments are included.”

Links:
Precinct annual report
Result presentation

Attribution: Company release.

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Precinct & Crown settle Wellington lease deal on 68,000m²

Precinct Properties NZ Ltd has secured long-term Crown leases in 4 Wellington buildings and an extension in another.

The company said on Monday it was a successful conclusion to negotiations on the Government’s Wellington accommodation project, resulting in long-term leases at Bowen Campus (pictured), Pastoral House, Mayfair House & 3 The Terrace, and the extension to the existing lease at 1 The Terrace.

As a result of the commitment, Precinct will develop Bowen Campus and undertake significant refurbishment at the remaining assets. The commitment secures 68,000m² of office space leased on a weighted average lease term of 14.6 years.

The Crown will get premium quality assets at below-market rentals levels after agreeing a 5% “bulk offer discount”.

Across all the buildings, Precinct will invest a total $213 million. Total project cost (including ingoing asset value based on 30 June 2015 valuations) has been put at $380 million. Precinct chief executive Scott Pritchard said the buildings would generate a blended yield on cost of 7.0% on completion.

The Crown has committed to 15-year leases at Bowen Campus, Pastoral House & Mayfair House, with varying start dates. At 3 The Terrace, the lease term is 12 years. All leases have a structured lease review profile.

Mr Pritchard said the commitment by the Crown concluded a comprehensive & rigorous process which had required the Crown to relocate a number of Government agencies. “Importantly for Precinct, the outcome will lift the weighted average lease term of the Wellington portfolio by 6 years to 9.5 years as at 30 June 2016. Precinct’s portfolio weighted average lease term improves by 3 years to 7.4 years.

“This is the largest leasing transaction ever undertaken by Precinct, and potentially in the New Zealand office market, and represents the successful conclusion of 3 years of complex negotiations.

“We are confident that the very substantial investment we are making will result in significant benefits for Precinct & the Crown through repurposing existing Crown-occupied buildings to deliver modern, highly efficient & cost-effective public sector workspace. The long-term leases represent some half a billion dollars in income over the lease terms and provide material earnings security for Precinct, while significantly strengthening our portfolio quality in line with our long-term strategy.”

Redevelopment of the Bowen Campus will increase the existing area, excluding the annex building, from 26,100m² to 38,400m². This increase in floor area is primarily due to an expansion of the Bowen State building from 14,100m² to 23,000m², as well as additional floor area gained from a new facade installed at Charles Ferguson Tower and additional retail amenity.

Precinct agreed a fixed-price lump-sum contract on Monday with LT McGuinness Ltd to complete the Bowen Campus works.

The Crown has committed to 32,400m² of office space (87% office precommitment) at Bowen Campus and has an option to take the remaining 3 floors at Bowen State, representing about 4700m². Precinct retains development potential over the 4000m² balance of the Bowen Campus site, which could support up to 25,000m² more office development.

Mr Pritchard said the Bowen Campus project was expected to have a total cost of $203 million and to generate a yield on cost of 7.5% when fully leased.

Works at Bowen Campus will start in November at the expiry of the existing lease to the Ministry of Social Development. The project is expected to reach practical completion in early 2019.

Mr Pritchard said: “Bowen Campus has been an outstanding investment for the Precinct portfolio. Purchased in June 2012 for $50.4 million, by the time works commence in November Precinct would have received $27 million in income (12%/year). Now the business will create 2 premium grade assets immediately adjacent to Parliament, underpinned by long-term leases to the Crown, with further development potential.”

Pastoral House will be vacated next March for works to take place over a 12-month period, including the complete refurbishment of all base building plant & equipment and major upgrades of all interior aspects of the building. Seismic strengthening works will raise Pastoral House’s 67% new building standard rating to 80%.

Upgrades of Mayfair House & 3 The Terrace will be undertaken in 2018 once existing tenants have vacated the buildings. Neither building requires seismic strengthening. The forecast total incremental spend for Pastoral House, Mayfair House & 3 The Terrace is $55 million.

The Crown has committed to lease 100% of the available space of all 3 buildings on completion of the works. The current lease for 1 The Terrace (tower portion comprising 7400m²) will be extended through to mid-2019, and this remains under consideration by the Crown for long-term lease.

Mr Pritchard said Precinct would fund the projects through existing bank facilities, taking committed gearing to about 39%.

Earlier story:
18 June 2015: 4 Precinct properties enter next phase of Government procurement process

Attribution: Company release.

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Precinct portfolio value up 5%

Precinct Properties NZ Ltd has reported a 5% ($81 million, last year $65 million) revaluation gain on its property portfolio, increasing the portfolio value to $1.7 billion.

The valuations were carried out by independent valuers, are subject to final audit & finalisation of year-end book values and will be confirmed in the annual results, to be announced on Thursday18 August.

Auckland valuations were 8.6% higher than forecast year-end book values and Wellington’s were 2.3% lower. Chief executive Scott Pritchard said today the Auckland increases were equally attributable to compression in capitalisation rates & market rental growth. He said the decline in Wellington values was a result of a reduction in market rents and an increase in capital expenditure allowances, offset by firmer capitalisation rates.

Attribution: Company release.

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Propbd on Q W17Feb16 – Fletcher result, Precinct result, power station buyer, Summerset in Hamilton, Nuplex offer

Fletcher lifts earnings
Precinct up 10%
Longtime industrial developer buys Otahuhu power station
Summerset buys second Hamilton site
Nuplex mulls Belgian offer

Fletcher lifts earnings

Fletcher Building Ltd increased half-year net earnings after tax from $114 million last year to $172 million.
Full result: Fletcher Building half-year results

Precinct up 10%

Precinct Properties NZ Ltd increased half-year net profit after tax (from $31.6 million to $34.8 million.

Link:
Precinct half-year result

Longtime industrial developer buys Otahuhu power station

Contact Energy Ltd has sold the Otahuhu power station land to Auckland developer Stonehill Property Trust, an entity operated by Euroclass Design & Build owners Julie & Peter Bishop, for $30 million. Under the terms of the sale, Contact & Stonehill Property will also take an equal share in the proceeds of the sale of plant & equipment onsite, over a 12-month period. The new owners take possession of the property this month.

Contact chief executive Dennis Barnes said: “Our decision to close our Otahuhu B station reflected the growth in renewable electricity generation, such as the new Te Mihi geothermal power station, which effectively replaced Otahuhu in Contact’s portfolio.”

The Bishops started their Euroclass business in 1987 as a design/build company focused on office/warehouse development and have grown their expertise in industrial property, including the 40ha Stonehill Business Park in Wiri, developed after closure of the McLaughlins Rd quarry 10 years ago.

Summerset buys second Hamilton site

Summerset Group Holdings Ltd said on Monday it had bought a 6.3ha site in the northern Hamilton suburb of Rototuna for a new retirement village.

Summerset chief executive Julian Cook said: “Rototuna has been one of the primary areas of housing development in Hamilton. It has high quality housing and is well serviced in terms of shopping & other residential services.”

The company intends to build over 270 homes including villas, townhouses & care apartments, and the village will have a care centre.

Summerset has an existing retirement village in Hamilton – Summerset down the Lane – which has 220 residents.

The company achieved its build target of 300 retirement units last year and Mr Cook said it was on track to deliver 400 this year.

The new site takes the retirement village operator’s total number of sites to 26. After achieving its build target of 300 retirement units in 2015, Summerset is on track to deliver 400 retirement units across its 21 operational villages in 2016.

Nuplex mulls Belgian offer

Nuplex Industries Ltd said on Monday it had received an indicative, non-binding & conditional takeover proposal from global coating resins producer Allnex Belgium SA/NV, backed by global private equity firm Advent International Corp, to acquire all the outstanding shares in Nuplex via a scheme of arrangement for a total of $5.55 cash/share, including any dividend.

Nuplex chair Peter Springford said discussions after Advent’s initial confidential approach last October were inconclusive, but it had revised the proposal 3 times and the price represented a 44% premium over Nuplex’s closing price last Friday.

“As the board believes engaging further with Allnex & Advent is in the best interests of shareholders, Nuplex is entering into advanced discussions & due diligence with the aim to agree a binding scheme iImplementation agreement. Shareholders would then vote on the proposal. Accordingly, Nuplex has granted Allnex & Advent a period of exclusivity of 6 weeks.”

Mr Springford added: “The board is confident that Nuplex management can deliver growth in earnings, particularly from the platform now established in Asia and our new breakthrough technology, Acure. However, the board knows that delivering this growth may take some time and that shareholders may value the certainty of $5.55/share today.”

Nuplex will report its interim financial results for the 2016 financial year tomorrow.

Attribution: Company releases.

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Propbd on Q W27Jan16 – Airport upgrade, QE Square

Airport upgrade continues
Precinct set to complete QE Square deal

Airport upgrade continues

Auckland International Airport Ltd said at the weekend the $160-180 million upgrade to its international departure area would include a new security processing zone, new passenger lounge & shopping hub.

Chief executive Adrian Littlewood said the expansion project was the next step in the development of a combined domestic & international terminal.

American architects Gensler and local practice Jasmax have designed the revamp.

Construction of the new international departure area by Fletcher Construction Co Ltd & specialist sub-contractors began late last year and will continue until early 2018.

The airport company will complete a new domestic departure lounge for use by Jetstar’s regional passengers in February, and open the first of several new gates on Pier B of the international terminal at the end of this year to accommodate the latest generation A380 & B787 aircraft.

Precinct set to complete QE Square deal

Precinct Properties NZ Ltd said last week it looked forward to confirming its agreement to buy the 1900m² Queen Elizabeth Square from Auckland Council, subject to no appeal being raised after the council notified the hearing commissioners’ decision on the plan change.

Precinct & the council entered into a sale agreement in February 2015 conditional on the land being rezoned.

Link: Private plan change 79 decision

Earlier stories:
20 January: Propbd on Q W20Jan16 – QE Square rezoning approved, Tamaki campus rezoning approved, Furniture City sold, SkyCity guidance up
14 December 2015: 
Precinct all set to transform Downtown

Attribution: Company releases.

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