Archive | Metropolis

2 Metropolis units sell

At 7 down and just one sale, City Sales’ final apartments auction for the year was looking a grim affair on Wednesday. However, the buyer of the last property on offer, a Metropolis apartment, went back and bought the identical unit 4 floors down for the same price for an auction-room tally of 3 sales for the day.

The 2 44m² Metropolis units were sold for $260,000 each (with a special remediation levy in place) and a 113m² unit in the Emily was sold for $565,000.

Nobody bid on a Century on Anzac unit, which also has a special remediation levy in place.

CBD

Learning Quarter

Century on Anzac, 100 Anzac Avenue, unit 9F:
Features: 38m², one bedroom
Outgoings: rates $983/year including gst; body corp levy $4963/year, special levy $20,608
Income assessment: $305/week
Outcome: no bid
Agent: Linda Wulf & Mike Campbell

Emily Apartments, 22 Emily Place, unit 5B:
Features: 113m², 2 bedrooms
Outgoings: rates $1495/year including gst; body corp levy $8202/year
Income assessment: $6-700/week
Outcome: sold vacant for $565,000
Agent: Gabrielle Hoffmann

Metropolis, 1 Courthouse Lane, unit 1404:
Features: 44m², fully furnished one bedroom, deck
Outgoings: rates $1107/year including gst; body corp levy $4745/year, special remediation levy $6070
Income assessment: $400-450/week
Outcome: passed in at $225,000, bidding reopened at end of auction and unit sold to the buyer of unit 1804 at the same price, $260,000
Agent: Damon Biggs

Metropolis, 1 Courthouse Lane, unit 1804:
Features: 44m², fully furnished one bedroom, deck
Outgoings: rates $1169/year including gst; body corp levy $5268/year, special remediation levy $6739
Income assessment: not given
Outcome: sold for $260,000
Agent: Iona Rodrigues

Victoria Quarter

Harvard on Hobson, 147 Hobson St, unit GM:
Features: 38m², 2 bedrooms, deck
Outgoings: rates $789/year including gst; body corp levy $3111/year
Income assessment: $320/week current, will be sold with vacant possession
Outcome: passed in at vendor bid of $170,000
Agent: Andrew Bond

Heritage Tower, 22 Nelson St, unit 1405:
Features: 100m², 2 bedrooms, 2 bathrooms, deck, parking space
Outgoings: rates $1853/year including gst; body corp levy $11,741/year
Income assessment: $600/week
Outcome: passed in at vendor bid of $450,000
Agent: Alana Nicholls

Zest, 72 Nelson St, unit 1135:
Features: 49m², fully furnished 2 bedrooms, 2 bathrooms, deck, parking space
Outgoings: rates $999/year including gst; body corp levy $5749/year
Income assessment: $370/week for apartment, fixed until 29 March; $45/week for parking space
Outcome: passed in at vendor bid of $230,000
Agent: Habeeb Urrahman

Isthmus west

Eden Terrace

The Virginia, 43 Virginia St East, unit 104:
Features: 43m², 2 bedrooms, deck, parking space
Outgoings: rates $1076/year including gst; body corp levy $3822/year
Income assessment: $350/week
Outcome: passed in at $240,000
Agent: Iona Rodrigues

Attribution: Auction.

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I’m in the town hall and a man tells me: “You left out the carpark”

Published 14 February 2011

By chance, as I was awaiting the start of this afternoon’s 4-hour Auckland Council meeting on rates & a few other things, including Maori representation, a real estate agent told me: “You left out the carpark.”

The agent was trying to sell an apartment on the same floor of the Metropolis as one sold at auction on 3 February. In that story, I bothered to write the price/m², something I don’t always do because of the numerous complicating factors such as balconies – and parking.

Take the parking space out and the price/m² drops by almost $1000. The agent had been puzzled because the price I quoted was well above figures he could attract interest at. Minus parking, the sale price was close to his assessment.

The 44m² 10th-floor unit sold for $283,000. After a 3-way discussion in which I was told parking at Metropolis was competing with spaces as far away as Princes Wharf, and that had steadily brought parking rents down, we established a parking rental of $220/month – $2640/year. The third party to this conversation suggested a yield of 6.25%, which put a price of $42,240 on the parking and reduced the residential unit price to $240,760.

And at that price the value comes down to $5472/m² – just under $1000/m² less than my original calculation of $6432/m².

The agent had looked at this original calculation and felt happier with the $6000/m² for the 35m² unit he was trying to sell, which took the price to $210,000 (no parking space). But he couldn’t attract any interest at that price so he made inquiries, discovered the omitted parking factor, took the $1000/m² off and feels he’s in a more appropriate price range at $191,500.

Earlier story:

3 February 2011: 5 sold at first Ray White apartments auction for year

 

Want to comment? Go to the forum.

 

Attribution: Conversation, auction, story written by Bob Dey for the Bob Dey Property Report.

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New deal for Metropolis bondholders

Trustee says new prospectus should be ready late October

Metropolis developer Andrew Krukziener hopes to have a proposal ready for consideration by bondholders in the second half of October, Tower Trust general manager Glenn Clark told the 1700 bondholders in a letter sent out last Friday.

They were to have been repaid their $21 million of capital in May. Instead, they have been waiting for workable new proposals to be put in place.

Mr Clark, as trustee for the Pacific Properties (Metropolis) Ltd bonds, served a default notice on 22 May. At that stage the bondholders were owed $4.4 million in interest, which was payable at 14%.

In his latest letter, Mr Clark said the key terms of a new proposal were worth considering, but two significant items had to be finalised before it could be documented and presented to the bondholders.

First, the ANZ Bank had to extend its first mortgage or be replaced by other finance. Second, a new prospectus would be required.

“Mr Krukziener is confident that he will have secured appropriate first mortgage finance and finalised the prospectus so that the proposal is ready for consideration by mid-October.

“When the proposal is ready for your consideration Mr Krukziener intends convening a meeting of investors to present it and he is confident this will happen by late October,” Mr Clark said.

Meanwhile, $6.6 million of Metropolis apartments have been sold since the start of June. Proceeds net of commissions go to the ANZ.

Mr Clark said he expected to write another letter to bondholders early in October.

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Krukziener defaults, compromise due in two days

1700 bondholders waiting for extra 7% which is unlikely to come

Andrew Krukziener has defaulted on his $21 million of Metropolis bonds but is working on a compromise scheme for the 1700 bondholders.

The trustee for the Pacific Properties (Metropolis) Ltd bonds, Glenn Clark of Tower Trust, served the demand on the issuer today.

The issuer, a Krukziener company, has 48 hours’ grace to make payment, which was due on Monday, the first business day after the bonds’ maturity date of 20 May.

14 days’ notice for meeting

Mr Clark said he didn’t expect payment to be made in that period. Once that time is up, he will give the required 14 days’ notice of a bondholders’ meeting, which is expected to have a finalised compromise to consider.

“We received a draft proposal on Friday and we expect to see a finalised proposal in the next two days,” he said.

He would not disclose the detail of the proposal, which is expected to be for an extension of the bonds’ term at lower interest rates.

Mr Krukziener is working on the proposal with Money Managers’ founder, Doug Somers-Edgar, whose clients took a large proportion of the bonds when they were issued in 1998.

The $21 million was the final drop of debt — falling in behind first and second-tier bank loans — for the 370-apartment (plus four top floors held by Mr Krukziener) Metropolis tower built between High St and Auckland’s old magistrates’ court on Kitchener St.

$4.4 million interest owed, and rising

The bonds replaced $14.6 million of higher-interest debt, and were offered at a 14% interest rate, half of that paid quarterly until June 2000 and the rest capitalised for payment in a lump sum on maturity.

Mr Krukziener now owes $4.4 million of interest on the bonds, and the default has triggered a penalty interest rate of 19%.

Bondholders could reject a rollover and a proposal of lower interest, but would gain nothing in doing so. That is likely to be the argument from Messrs Krukziener and Somers-Edgar in favour of a compromise.

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