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One condition left on Central Park sale, and Air NZ extends at Fanshawe St

Goodman Property Trust manager Goodman (NZ) Ltd said yesterday its sale of Central Park at Greenlane had all but gone unconditional, with only Overseas Investment Office approval still required.

The trust has also secured a new long-term lease commitment from Air NZ on its Fanshawe St headquarters.

Goodman (NZ) chief executive John Dakin said yesterday the $209 million Central Park sale to a joint venture led by New Zealand property fund manager Oyster Property Group Ltd represented a significant milestone in the repositioning of the Goodman trust, marking the last of its major identified asset sales.

“Following settlement of the property, the trust’s portfolio will be almost 90% invested in its preferred Auckland industrial sector and will have a value of $2.4 billion.

“With over $850 million of asset sales since 2012, we have positively rebalanced the trust’s portfolio, improving the quality & growth profile of the assets. It’s a disciplined strategy that is focused on the delivery of the industrial development pipeline and building a portfolio of unrivalled quality.”

Air NZ’s headquarters at 185 Fanshawe St.

The VXV precinct

The Goodman trust’s office investment is now focused in the VXV precinct of the Auckland waterfront Wynyard Quarter. The trust jointly owns the portfolio of 7 buildings with GIC Pte Ltd, the sovereign wealth fund of Singapore. The portfolio has a value of $488.4 million and Goodman’s proportionate share is $249.1 million.

Air NZ’s head office at 185 Fanshawe St is in that precinct. Trans Tasman Properties Ltd began development of the 6-level building in 2005, putting a $60 million value on it, but sold the development part-built to what was then the Macquarie Goodman Property Trust, with Air NZ as the incoming tenant.

Air NZ has renewed its lease for 10 years. Mr Dakin said that, and the Central Park sale, would increase Goodman’s portfolio occupancy to 98% extend the office portfolio’s weighted average lease term to 10.6 years and the overall lease term to 6.2 years.

Earlier story:
10 November 2017: Big property sale follows first-half profit setback for Goodman

Attribution: Company release.

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Mixed-use central city buildings sell

Bayleys agents have sold 2 central city buildings on Hobson & Wellesley Sts.


Victoria Quarter

4 Hobson St:
Features: 455m² site, 1123m² 5-level mixed-use building – short-term language school lease on levels 1 & 2, vacant 358m² (including 103m² of balconies) 2-level 4-bedroom apartment above
Rent: $159,000/year net + gst (from language school lease)
Outcome: sold for $5.2 million
Agents: Quinn Ngo, Matt Lee, James Chan & Robert Platt

119 Wellesley St West:
Features: 804m² site opposite the entranceway to the City Works Depot & Sale St, 2-level 1056m² retail & office building fully leased to 6 tenants; city centre zoning permits a wide range of activities, including residential, and has a 30m height allowance
Rent: $300,526/year net + gst
Outcome: sold for $5.65 million at a 5.32% yield
Agents: Brendon Graves, Cameron Melhuish & Ben Wallace

Attribution: Agency release.

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Big property sale follows first-half profit setback for Goodman

A $28.2 million turnaround in the fair value of investment property took the Goodman Property Trust from a $67.6 million profit in the September half last year to a $39.5 million interim profit this year.

Perhaps more importantly, the trust has continued its repositioning since September with 2 more asset sales, conditionally selling the Central Park Corporate Centre (pictured) in Auckland and unconditionally selling a Christchurch property.

Main financial details (September 2016 in brackets):

  • Pretax operating earnings $59.8 million ($59.9 million)
  • After tax operating earnings $51.4 million ($51.0 million)
  • Fair value movement, down $8.4 million (up $19.8 million)
  • Pretax profit $45.3 million ($73.1 million)
  • After tax profit $39.5 million ($67.6 million), down 41.6%
  • Pretax operating earnings/unit 4.65c (4.7c)
  • After tax operating earnings/unit 4c (4.01c)
  • Look-through loan:value ratio 32.4% (28.8%)
  • Unchanged cash distributions of 3.325c/unit represent about 94% of cash earnings.

Management company chair Keith Smith said yesterday Goodman leased over 70,000m² of space on new or extended terms, the average lease term was 5.8 years and portfolio occupancy was 97%.

The trust announced 6 new industrial projects totalling $148.7 million in August, covering over 10ha of development land and providing almost 60,000m² of rentable area on completion, at an 8.3% yield on cost.

Since September, the trust has contracted to sell $229.4 million of property:

  • Central Park Corporate Centre, conditionally, for $209 million, and
  • the recently completed Steel & Tube development in Hornby, Christchurch, unconditionally for $20.4 million, due to settle in April 2018.

Board likes composition & quality

Mr Smith said the board was pleased with the overall improvement to the composition & quality of its $2.6 billion portfolio: “The progression of the development programme, selective asset sales & targeted acquisitions are all having a positive impact, refining the portfolio and positioning the trust for sustainable growth.”

Chief executive John Dakin said the portfolio which is now over 80% invested in “the rapidly growing & supply constrained” Auckland industrial sector.

“This investment focus reflects the positive return characteristics of industrial property and the stronger economic drivers of New Zealand’s largest city.

“Economic growth, demographic changes, technological advances & the development of online retailing are all contributing to the strong demand for logistics & warehouse space in Auckland.”

Mr Dakin said the sale of Central Park was a significant transaction for the trust: “It is the last of the planned major asset disposals and its successful conclusion would complete a substantial rebalancing of the portfolio, focusing investment in the Auckland industrial sector.”

He said the trust was also in a much stronger investment position following its asset sales, with gearing at 32.4%, well below the 50% maximum allowed under its debt & trust deed covenants.

The completion of the $100 million Goodman+Bond offer in May improved the trust’s liquidity & debt diversity, and at 30 September it had $260 million of undrawn bank facilities.

Assuming settlement of both conditional & unconditional sales, that gearing ratio will fall to 25.8% and the undrawn bank facilities will increase to over $500 million.

Assuming a stable business outlook, the trust expected to deliver full-year pretax operating earnings of about 9.1c/unit, cash earnings of about 7c/unit, and cash distributions totalling 6.65c/unit.

Attribution: Company release.

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Statesman & Stanford apartments sell

2 of the 3 apartments auctioned at Ray White City Apartments yesterday were sold under the hammer – one in the Statesman (pictured) and the other in the Stanford, along with a Papatoetoe house sold at pre-auction.


Learning Quarter

Statesman, 1 Parliament St, unit 514:
Features: 30m² internal, furnished studio, balcony, storage locker
Outgoings: rates $1214/year including gst; body corp levy $2312/year
Income assessment: $390/week current, assessment $400-420/week furnished
Outcome: sold for $380,000
Agents: Michelle & Judi Yurak

Victoria Quarter

Stanford, 189 Hobson St, unit 3E:
Features: 37m², 2 bedrooms
Outgoings: rates $1110/year including gst; body corp levy $4238/year
Income assessment: $480/week, fixed until February
Outcome: no bid, back on the market at $349,000
Agents: Ron Yang



Spencer on Byron, 9-17 Byron Avenue, unit 507:
Features: 48m², one bedroom, sold on “as is, where is” basis – remediation cost recovery & further expense assigned to buyer
Outgoings: rates $3918/year including gst; body corp levy $2982/year
Income assessment: in hotel pool
Outcome: sold for $148,000 + gst
Agents: James Mairs & Gillian Gibson

Attribution: Auction.

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Onehunga warehouse sells at auction

An Onehunga warehouse (outlined in blue in photo) was sold at Colliers’ auction today, but a Milford property with potential upstairs development was passed in.

Isthmus east


51 Angle St:
Features: 556m² site zoned heavy industry, 413.8m² warehouse, 45.1m² office
Outcome: sold vacant for $1.345 million
Agents: Jeremy Barnett & Ben Cockram



83-85 Kitchener Rd:
Features: 261m² site, 295.7m² floor area, 2 first-floor apartments consented, 4 parking spaces
Rent: $98,000/year net from 2 ground-floor tenants, potential additional residential rent of $50,000/year
Outcome: passed in
Agents: Mike Ryan, Euan Stratton & Matt Prentice

Attribution: Auction documents.

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Port masterplan proposals include adding & subtracting wharf space, car-handling building, hotel

Auckland Council-owned Ports of Auckland Ltd released its draft 30-year masterplan today, which outlines a range of projects it says are needed for the port to keep delivering for Aucklanders until the port is moved.

Image above: The port as it might appear in 30 years from the Sky Tower.  

Key points:

  • 275ha of old wharf removed, 1.25ha added
  • New wharf along Bledisloe Terminal north end
  • Marsden Wharf & ‘B1’ removed
  • Container terminal automation
  • Deepwater terminal berth completed
  • 3 new cranes
  • 5-storey car handling building freeing space on Captain Cook Wharf for public use
  • New hotel or other building for public use.

Keeping port relocation in mind

Chief executive Tony Gibson said: “Our owner, Auckland Council, is undertaking a project to find a new port location. But shifting a port takes time. Finding the best location, getting consent, securing funding and undertaking construction will take decades. In the meantime, we need to ensure that we can continue to deliver freight for importers, exporters & Aucklanders.

“We have listened to what our stakeholders & Aucklanders want & need from the port & our operations in relation to the Waitemata Harbour. In response, we’ve developed a draft 30-year masterplan that we think balances Auckland’s economic, social & environmental needs. Our plan provides transparency & certainty about what we need to do to continue delivering for Aucklanders. It creates space for freight and gives Auckland Council the time it needs to make a sound decision on where, when & how to move the port.

“Auckland’s population is growing and Ports of Auckland needs to adapt to keep pace.”

The projects

“Our masterplan outlines all the projects that we will need to undertake until such time as the port is relocated. It includes the automation of the container terminal, completion of a deepwater terminal berth and installation of 3 new cranes. This work, along with other projects outlined in the plan, will provide us with additional capacity in our container terminal to serve a population of up to 5 million – 3 times the number of people living in Auckland today.

“We are facing significant capacity issues on our general cargo wharves. We have a plan to develop a 5-storey car handling building which will provide more capacity, hide cars from view and free up space on Captain Cook Wharf for public use. On top of this building we will create a new waterfront park and, next to it on Quay St, we have earmarked space for a new hotel, or other such building for public use.

New piled wharf

“We also have a plan to increase berth space. We are proposing to build a new wharf running east-west along the north end of Bledisloe Terminal, in line with the recommendations of Auckland Council’s Port future study. It will be a piled structure in line with our commitment to no further reclamation, but it will reach an extra 13m north into the harbour. This 13m is essential to the success of the other wharf projects.

“We will also remove all of Marsden Wharf and part of a wharf known as ‘B1’. This will bring 3 redundant wharves back into use and create nearly a kilometre of new general cargo berth space.

“In total we are proposing to remove more wharf than we build, removing 1.275ha of old wharf and adding 1.25ha of old wharf.

“We want Aucklanders to be proud of their port, and for the projects outlined in our plan to create a legacy. We’ve tried to develop a plan that fairly reflects the feedback we’ve received and also balances sometimes divergent wants & needs. We’ve had to make some compromises, but we are confident the proposed plan will ensure we can continue to serve Auckland’s growing population.

“We will need to start applying for consents for some of the more urgent projects soon. As we do so, we will engage with the community and provide regular updates.”

First step to engagement

“As a first step in this process, I would like to invite all Aucklanders to visit www.masterplan.poal.co.nz to learn more about our draft masterplan and give us feedback. We will continue to engage with all our stakeholders as we start to move forward with these projects.”

Link: Ports of Auckland draft 30-year masterplan

Attribution: Company release.

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Wairau Valley sale, Apollo Drive lease

Colliers agents on the North Shore have sold a Wairau Valley office building (pictured) and leased a small unit on Apollo Drive.



Wairau Valley

66 Hillside Rd:

Features: 809m² site, 587² net lettable area, air-conditioned office building, workshop with roller door access, separate rental stream from Vodafone licence
Outcome: sold vacant for $1.92 million on 25 October
Agents: Janet Marshall & Mike Ryan


Mairangi Bay

39-43 Apollo Drive, unit 8:

Features: 136m² unit, 4 parking spaces
Rent: leased 25 October for $41,000/year net + gst        
Agents: Janet Marshall & Nick Recordon

Attribution: Agency release.

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Tauriko & Silverstream business land sales

Colliers agents in the Bay of Plenty have sold a Tauriko industrial development site (pictured) and a Tauranga office building.

In Otago, 2 lots in the Silverstream Business Park in Mosgiel have been sold.

South of the Bombays

Bay of Plenty


115 Cameron Rd:
Features: 810m² site, 2-storey 851m² office building, 10 parking spaces
Rent: $158,594/year net + outgoings + gst
Outcome: sold for $3.1 million at a 5.1% yield
Agents: Simon Clark & Duncan Woodhouse


lot 232 Kennedy Rd:
Features: vacant 4799m² industrial development site, rear right-of-way for dual access
Outcome: sold for $1,775,630 at $370/m² land
Agents: Rachel Emerson, Simon Clark & Brad Johnston

South Island



Silverstream Industrial Park, 180 Dukes Rd, lots 2 & 11:
Features: 2700m² of warehouse & office 
Outcome: sold to an owner-occupier for $1.15 million + gst
Agent: Dean Collins

Attribution: Agency release.

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Updated: Takapuna properties bought on development-based yields as 9 sell at Bayleys’ commercial auction

Published 26 October 2017, updated 28 October 2017:
Bayleys’ 7th Total Property commercial auction in Auckland for the year ended with 9 properties sold, 8 passed in, and the auction of the one remaining property on the list was deferred a week. Another, in Birkenhead, has been sold post-auction.

The sales included 2 adjoining converted houses (pictured) on Lake Rd, Takapuna, sold at yields on present uses of 2.7% & 4.1%. Both have more intensive development potential.



Sebel, 85-93 Customs St West, unit S:
Features: leasehold, 628m² floor area, tenant Soul Bar on 9-year lease + rights of renewal until 2038
Rent: $437,500/year net + gst + outgoings including ground rent, rent reviews to CPI + fixed increases
Outcome: passed in
Agent: Mark Pittaway

16 Viaduct Harbour Avenue, unit 1A, ground floor:
Features: leasehold, 439m² office including balcony, 5 secure covered parking spaces
Rent: $248,500/year gross + gst, net $124,026/year + gst, 6-year lease to Auckland Council with rights of renewal
Outcome: passed in
Agent: Mark Pittaway

Isthmus east


360 Onehunga Mall:
Features: 538m² site zoned residential – terrace housing & apartment building, 2-level 341m² building constructed in 2010, ground-floor liquor store, 4-bedroom accommodation above
Rent: $93,712.50/year net + gst
Outcome: sold for $1.96 million at a 4.78% yield
Agents: Ken Lu, Damien Bullick & Alan Haydock


100 Queens Rd:
Features: 979m² site, 1701m² floor area, multi-tenanted retail property
Rent: $131,181/year net + gst + outgoings, rising to $139,432/year next April 
Outcome: auction deferred until Wednesday 6 December
Agent: Mark Pittaway


766 Great South Rd:
Features: 998m² site, 300m² single-level medical clinic, multiple tenants include GP practice, physiotherapist, occupational therapist & accountant
Rent: $65,050/year net + gst
Outcome: sold for $1.065 million at a 6.11% yield
Agents: Tony Chaudhary, Janak Darji, James Hill & James Chan

25 Walls Rd:
Features: 1037m² light industry-zoned site, 702m² high stud warehouse & office building, new 6-year lease to well established import & distribution tenant
Rent: $106,302/year net + gst     
Outcome: sold for $2.305 million at a 4.61% yield
Agents: Mike Adams & Phil Haydock

Isthmus west

Mt Eden

54 Mt Eden Rd:
Features: 400m² site zoned mixed use, in Grammar zone, 130m² villa, garage + 3 parking spaces
Outcome: passed in at $1.4 million
Agents: Alan Haydock, Phil Haydock & Damien Bullick



221-225 Hinemoa St:
Features: 522m² floor area, medi-spa & beauty salon a tenant since 2004 & on new 5-year lease, 2 small shops, penthouse apartment
Rent: $122,304/year net + gst from commercial premises, apartment vacant
Outcome: passed in at $3.5 million
Agents: James Kidd & Michael Nees

Updated: 60-62 Mokoia Rd:
Features: 405m² site in town centre zone (21m height limit) retail strip, 744m² floor area, 3 tenants
Rent: $131,018.33/year net + gst + outgoings
Outcome: passed in at $2.2 million, sold shortly after auction for $2.3 million at a 5.7% yield
Agents: Michael Nees & Nick Howe-Smith


58-60 Jutland Rd:
Features: 371m² site zoned neighbourhood centre (13m height limit), 398m² 2-level building with mix of commercial & residential tenancies – 3 ground-floor retail units, anchored by a superette, 2 flats above; secondary access at the rear, where there are 4 parking spaces
Rent: $100,088/year net + gst current, development upside   
Outcome: sold for $2.09 million at a 4.79% yield
Agents: Adam Curtis, Damian Stephen & Nick Howe-Smith

398 Lake Rd:
Features: 888m² site in mixed use zone, 321m² 2-level building; the Skin Institute has occupied the premises since 1994 and has recently renewed its lease until September 2023, with 3 further 3-year rights of renewal; zoning provides potential for residential accommodation with sea views on top of commercial base
Rent: $165,000/year/net + gst    
Outcome: sold for $4.04 million at a 4.08% yield
Agents: Ranjan Unka, Tonia Robertson & Ashton Geissler

400 Lake Rd:
Features: 890m² site zoned mixed use, 272m² converted split-level character residential building, fully leased to long established law firm Turner Hopkins with 5½ years to run on lease, longer-term potential for multi-level redevelopment
Rent: $96,000/year net + gst
Outcome: sold for $3.61 million at a 2.66% yield
Agents: Tonia Robertson, Ranjan Unka & Terry Kim



42 Paramount Drive, units 6 & 7:
Features: 280m² for 2 units consented for restaurant use, separate entrances, in retail complex off Lincoln Rd
Outcome: sold vacant for $1.408 million
Agents: David Han, Terry Kim & Matt Lee



40 9th View Avenue:
Features: 1416m² site zoned residential – terrace housing & apartment building, opposite entranceway to Pine Harbour marina, modern 640m² single-level showroom building;
Rent: $36,443/year holding income
Outcome: sold for $1.65 million from lease to Pine Harbour Motorsport Museum
Agents: Nick Bayley & Dave Stanley

East Tamaki

46 Neilpark Drive:
Features: 2100m² site, 2 adjoining clearspan warehouse & office units totalling 1012m²
Rent: $110,000/year net + gst holding income from short-term leaseback of both units to vendor
Outcome: sold shortly after auction for $2.65 million
Agents: Katie Wu, John Bolton & Roy Rudolph


80 Hunua Rd, lot 2:
Features: 9453m² site, 6302m² warehouse
Rent: $360,000/year net + gst     
Outcome: passed in at $4 million
Agents: Shane Snijder & Peter Migounoff


55 Ash Rd, unit 4:
Features: 200m² unit in industrial precinct, parking
Rent: $28,600/year net + gst
Outcome: passed in at $625,000
Agents: Karl Price & Nick Bayley

South of the Bombays

Manawatu – Dannevirke

69 High St:
Features: 617m² site, 693m² building, long-term tenant Westpac on new 5-year lease, 3 more 3-year rights of renewal, second tenant Cooly Properties Ltd on one-year lease to end of next year
Rent: $59,000/year net + gst from bank, $30,000/year net + gst from second tenant
Outcome: no bid
Agent: Rollo Vavasour

Attribution: Auction.

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New Christchurch hotel goes on market

A new hotel under construction in Christchurch, which was to have launched the Ramada Encore brand in New Zealand, has gone on the market through Resort Brokers.

The franchise arrangement Wyndham Hotel Group remains an option.

The 88-room 3.5-star hotel is being developed at the corner of Colombo & Salisbury Sts by local company Lepdon Holdings (2006) Ltd (Ann & Gary Le Pine) in collaboration with Vietnamese builder TLC Modular (Thao Li Construction, Trading & Services Co Ltd).

Resort Brokers Australia national sales manager Trudy Crooks said the Le Pines had intended to operate the hotel themselves, but then decided to sell it

Expressions of interest close on Friday 17 November.


Resort Brokers NZ
The Hotel Conversation, 23 October 2017: Brand new Christchurch cbd hotel for sale
Wyndham Hotel Group, 1 May 2017: Ramada Encore Brand Debuts in New Zealand
TLC Modular

Attribution: Wyndham, Resort Brokers, The Hotel Conversation, TLC.

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