Archive | Wynyard Quarter

Precinct commits to Wynyard stage 2

Precinct Properties NZ Ltd committed yesterday to stage 2 of its Wynyard Quarter project, part of the wider Innovation Precinct on the Auckland waterfront.

Chief executive Scott Pritchard told the company’s annual meeting yesterday Precinct would develop the second stage, 10 Madden St, on an uncommitted basis. It will comprise a single-level basement & 7 upper levels, providing a net lettable area of 8290m², has an expected total project cost of $72 million and is expected to generate a yield on cost in excess of 7% once fully leased.

In a release out yesterday, Mr Pritchard said: “Committing to the development of stage 2 reflects an important step forward in the development of the wider Innovation Precinct and the creation of a thriving creative hub. We began construction of stage 1 in 2015 and we are excited to proceed with the next stage of the project’s evolution.

10 Madden St’s N Cole Plaza.

“Having developed the Mason Bros building during stage 1 on an uncommitted basis, we have confidence that the quality & location of this development will attract occupiers, with the majority of tenancies expected to be committed prior to completion. We are already seeing good levels of enquiry from businesses wanting to be located in the Innovation Precinct.

“Following stage 2, there are a further 2 sites which offer another 22,000m² of office space, which we expect to develop over the next 5-6 years.”

Sustainability is a leading principle of the Innovation Quarter’s design, and for stage 2 Precinct will be targeting a 5 star green design (office) & as-built star accreditation, and a 4.5 star NabersNZ whole building rating. The building will include end-of-trip facilities, with 12 electric vehicle charging units, and incorporate daylight-harvesting energy-efficient LED lighting. The rear side of the building will also feature a vertically planted green screen which will cover the open egress stairs.

Precinct will undertake the development in partnership with Auckland Council property arm Panuku Development Auckland. Hawkins Construction Ltd will be the main contractor under a fixed-price construction contract. Construction is expected to begin this month, and practical completion is programmed for the end of 2020.

Attribution: Company release, annual meeting.

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Precinct Properties valuations & profit up, debt low

Precinct Properties NZ Ltd increased its net profit after tax by 57.2% to $254.9 million (2017: $162.1 million) in the year to June. The quality of Precinct’s portfolio including its active development pipeline has resulted in a portfolio revaluation gain of $208.7 million, or 9.0%.

Image above: The trio of buildings at the centre of Precinct Properties’ strong performance – the existing PwC Tower at right, the new PwC Tower under construction and the existing HSBC House at 1 Queen St, to be redeveloped into a hotel with office above.

Net operating income (distributable earnings), which adjusts for a number of non-cash items, has increased by 2.5% to $76.6 million ($74.7 million). This equates to 6.32c/share, in line with guidance (2017: 6.17c/share).

Revenue growth of 3.6% was primarily due to the completion of Wynyard Quarter stage 1, which was partially offset by foregone income related to development activity and 10 Brandon St, Wellington. After allowing for these transactions & activity, on a like-for-like basis gross rental income was 3.7% higher. This growth has driven an uplift in NPI by 5.4% to $95.3 million ($90.4 million).

As at 30 June 2018, Precinct’s portfolio value increased to around $2.5 billion following the strong revaluation gain. Precinct’s net tangible assets/share were up 12.9% to $1.40 (2017: $1.24).

Chief executive Scott Pritchard said yesterday: “The last financial year has delivered another strong result for our business. As we moved forward with our strategy, we progressed a number of initiatives and achieved key milestones during the year. We have continued to take an active management approach with both our investment portfolio and our development pipeline, leveraging Precinct’s market position.”

Focusing on a number of capital management initiatives during the year has resulted in $250 million of capital raised through the completion of a convertible notes offer & bond issue. Precinct also sold a 50% interest in the ANZ Centre in Auckland and sold 10 Brandon St in Wellington. These assets totalled $191 million of capital recycled.

“At year end our investment portfolio has continued to benefit from strong occupier markets. Achieving a high overall portfolio occupancy of 99% at year end and weighted average lease term of 8.7 years demonstrates this. Our Auckland portfolio has performed particularly, well with occupancy sitting at 100%, reflecting demand for premium inner-city office space. In Wellington, we have also reduced vacancy.

“In both Auckland & Wellington, we have successfully leased major expiries well ahead of vacancy. At the AMP Centre in Auckland, the QBE expiry has been fully leased at a premium of 17% to previous rentals. At Aon Centre in Wellington, 3 floors have been leased on the former IAG tenancy, with 2 remaining floors becoming available in early 2019.”

Mr Pritchard said the Auckland hotel market was experiencing unprecedented levels of growth in demand, which is forecast to persist through further growth in tourism numbers until at least 2025: “While a number of new hotel projects have been announced in the last 24 months, the increase in supply is expected to still fall short of demand over the short term and reach equilibrium over the medium to long term. This is expected to underpin robust room and occupancy rates.”

Commercial Bay

Commercial Bay remains on track to deliver a yield on cost of 7.5% and an increased profit on cost of 41% (June 17: 31%) or $283 million. Based on current project metrics, there remains a further $100 million of unrecognised development profit expected to materialise on completion.

Bowen Campus

In Wellington, construction works have continued to progress well over the last 12 months. We have now completed the facade installation at Charles Fergusson Tower with on floor works continuing. All works are targeted for completion late December 2018.

At Bowen State Building we have completed the majority of the structural works for the building including the north and south shear walls. The façade is now 90% complete for the building, installed from Level 1 to 10. On floor works are also underway to all levels.

Occupation of Bowen State Building by New Zealand Defence Force is expected in Q3 2019.

Financial highlights:

  • Net profit after tax increased by 57.2% to $254.9 million ($162.1 million)
  • Net property income, up 5.4% to $95.3 million ($90.4 million)
  • Net operating income, up 2.5% to $76.6 million ($74.7 million)
  • Full-year dividend, up 3.6% to 5.8c/share (5.6c/share), representing a 100% payout ratio (under AFFO – adjusted funds from operations)
  • Property revaluation gain of $208.7 million – 9% ($77.5 million)
  • Net tangible assets/share, up 12.9% to $1.40 ($1.24)
  • Earnings guidance for the June 2019 financial year, net operating income of about 6.60c/share, dividend expected to increase by 3.4% to 6c/share

Capital management:

  • $191 million of asset sales, providing capacity for new projects
  • $250 million of non-bank funding secured
  • Post-balance date refinancing of $760 million bank debt facility
  • Strong financial position, gearing of 25.0% (25.1%); pro forma gearing reduced to 19.4% at balance date following asset sales

Commercial Bay:

  • Advancing retail commitments to 76% (46% at June 2017) and office commitments to 78% (2017: 66%)
  • Yield on cost unchanged at 7.5%, with an increased profit on cost following the revaluation of 41% (June 2017: 31%), or $283 million
  • Phase 1 of the retail remains on schedule, with H&M opening its flagship 3800m² store on Thursday 30 August
  • A revised completion programme has recently been provided.

Bowen Campus:

  • Charles Fergusson Tower on track for completion in December & occupation by Ministry of Primary Industries
  • Bowen State Building to be occupied by NZ Defence Force, with lease starting April 2019
  • Yield on cost of 7.0%+, with an increased profit to 18%.

Future development opportunities:

  • Design has advanced for Wynyard Quarter development stages 2, 3 & 4; Precinct anticipates the second stage of the development will start in the next 6 months
  • Building design & marketing underway for precommitment leasing for the remaining development land at Bowen Campus.

Investment portfolio:

  • Auckland fully leased
  • Occupancy of 99% (2017: 100%) and a weighted average lease term across the portfolio maintained at 8.7 years (2017: 8.7 years)
  • 41 lease transactions completed, encompassing over 21,900m² & 598 parking spaces
  • Strong demand for space, with QBE expiring floors leased ahead of vacancy and 3 floors of IAG expiry leased at Aon Centre, Wellington
  • Strong like-for-like income growth of 3.0% – Auckland up 3.1%, Wellington up 2.9%
  • Generator occupancy of 73%, well above expectations; with 75% (9500m²) of its space launched during the year, the Generator business recorded a loss, as anticipated for this trading-up period.

Links:
Precinct Properties
Precinct Properties annual report
Commercial Bay

Related stories today:
Precinct Properties presents a long list of positives from development & in financial structure
Precinct Properties valuations & profit up, debt low
The 1 Queen St redevelopment

Attribution: Company release.

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All 3 apartments sell at auction

All 3 apartments sold under the hammer at Ray White City Apartments’ auction today, all after strong bidding.

CBD

Victoria Quarter

One Hobson Residences, Grand Chancellor, 1 Hobson St, unit 1309:
Features: 57m² + 12m² balcony, fully furnished one-bedroom sub-penthouse
Outgoings: rates $1591/year including gst; body corp levy $4223/year
Income assessment: $600-650/week
Outcome: sold for $590,000
Agents: Adam Gurr & Josh Muriwai

Wynyard Quarter

Lighter Quay, 77 Halsey St, unit 513:
Features: leasehold, 41m², furnished one bedroom
Outgoings: rates $1487/year including gst; body corp levy $5676/year for last year including $2753 ground rent; ground rent has gone to arbitration; residents society levy $1513/year
Income assessment: was $520/week, sold with vacant possession, appraisal $550-580/week
Outcome: sold for $164,000
Agents: Mitch Agnew & Ryan Bridgman

Isthmus west

Eden Terrace

Montpellier Square (pictured), 30 Randolph St, unit 2B:
Features: 54m², one bedroom, tandem parking, storage locker
Outgoings: rates $1168/year including gst; body corp levy $3082/year
Income assessment: $450-500/week
Outcome: sold for $438,000
Agents: Mitch Agnew & Ryan Bridgman

Attribution: Auction.

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Goodman & Singapore fund sell VXV portfolio to Blackstone

The joint venture between the Goodman Property Trust & Singapore sovereign wealth fund GIC has sold its VXV office portfolio along Fanshawe St in the Auckland cbd to funds managed by US asset manager Blackstone Group LP for $635 million.

The gross sale price of $635 million – $165 million above the estimated value after 2 buildings were added to the portfolio last June – reflects a passing yield of 6.6%.

GIC entered the joint venture, Wynyard Precinct Holdings Ltd, in 2014, making its first investment in New Zealand property. Goodman held 51% and GIC 49% of the venture.

The VXV commercial precinct is on the Victoria Park end of the Wynyard Quarter, which has turned a former industrial & port district into a smart & upmarket office, café & residential precinct. The VXV portfolio comprises 7 lowrise office buildings containing about 88,000m² of space.

John Dakin, chief executive of the Goodman trust’s manager, Goodman (NZ) Ltd, said today: “This is a defining transaction for our business as it completes a repositioning programme that has established the Goodman Property Trust as the country’s leading provider of high quality industrial space. Following this & other contracted sales, Goodman’s $2.2 billion portfolio will be almost 100% invested in the Auckland industrial market.

“We have made tremendous progress with our development programme over the last 5 years, with more than $670 million of new projects improving an already high quality portfolio. The $1.2 billion of asset sales funding this development activity have also deleveraged the balance sheet. With an expected loan:value ratio of below 20% following this sale, we have substantial capacity for future development & investment opportunities.”

The transaction, which remains subject to Overseas Investment Office & freehold landowner approval, is expected to settle late in the 2019 financial year (in the first quarter of next calendar year) and will add about 2.5c to the trust’s pro forma net asset backing. The settlement timing means the sale is not expected to have a material impact on earnings or distributions for the 2019 financial year.

Earlier stories:
2 February 2018: Blackstone’s Arena Living buys Mt Eden Gardens
27 June 2017: Goodman-GIC joint venture settles Bayleys House purchase
14 May 2017: Goodman-GIC joint venture adds Bayleys House to portfolio
>17 February 2016: Blackstone buys Lendlease’s NZ retirement villages

27 March 2015: Fletcher & Goodman sign up for new Wynyard Quarter building
7 November 2014: Goodman Group buys another Wynyard development block
7 November 2014: GIC buys into Goodman waterfront partnership

Attribution: Company release.

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7 out of 8 sell at Ray White apartments auction

7 apartments were sold at Ray White City Apartments’ auction today out of 8 on offer.

The sales included 2 leasehold units, one in Vibe at the Viaduct and the other in Lighter Quay in the Wynyard Quarter.

The one not sold, in the Ascent on Nelson St, attracted no bid.

CBD

Learning Quarter

Focus on Anzac, 99 Anzac Avenue, unit 6F:
Features: 60m², 2 bedrooms
Outgoings: rates $1409/year including gst; body corp levy $5150/year
Outcome: sold for $467,500
Agents: Dominic Worthington & Ady Huang

The Quadrant, 10 Waterloo Quadrant, unit 2207 & parking space G436:
Features: 65m², 2 bedrooms, separately titled secure & under-cover parking space, outside hotel management pool, sold with vacant possession
Outgoings: rates $1848/year including gst for apartment, parking $130/year; body corp levy $8002/year for apartment, parking $1196/year
Outcome: sold for $700,000
Agents: May Ma & Mark Li

Victoria Quarter

Stanford, 189 Hobson St, unit 8F:
Features: 41m², 2 bedrooms,
Outgoings: rates $1123/year including gst; body corp levy $3855/year
Income assessment: $450/week, fixed until 2 October
Outcome: sold for $280,000
Agents: Judi & Michelle Yurak

Zest, 72 Nelson St, unit 1504:
Features: vacant 37m² + balcony, furnished 2 bedrooms, secure parking space
Outgoings: rates $1227/year including gst; body corp levy $4487/year, hot & cold water not included in levy
Outcome: sold for $380,000
Agents: Judi & Michelle Yurak

Ascent, 149 Nelson St, unit 604:
Features: 41m², one bedroom, new code compliance certificate (CCC) has been issued
Outgoings: rates $1007/year including gst; body corp levy to be confirmed
Income assessment: $360/week current, appraisal $430-450/week
Outcome: no bid
Agents: Mitch Agnew & Ryan Bridgman

Waterfront

Vibe, 16 Market Place, unit 2J:
Features: leasehold, 40m², one bedroom
Outgoings: rates $1305/year including gst; body corp levy $4768/year, ground rent $4,878/year
Income assessment: $475/week, increased to $490/week on 20 April, fixed term terminating on 20 October
Outcome: sold for $111,000
Agent: Krister Samuel

Wynyard Quarter

Lighter Quay, 77 Halsey St, unit 209:
Features: leasehold, 60m², fully furnished 2 bedrooms, 2 ensuites, balcony
Outgoings: rates $1760/year including gst; body corp levy $4207/year, residents’ society fee $2286/year, ground rent $3963/year & 7-yearly reviews, special levy $1606 due in June
Outcome: sold for $270,000
Agent: Ann Bennett

Isthmus west

Grey Lynn

Scala, 17 Scanlan St, unit 3C:
Features: vacant m², one bedroom + flexi space, tandem parking
Outgoings: rates $1415/year including gst; body corp levy to be confirmed
Income assessment: $530-560/week
Outcome: sold for $645,000
Agents: Mitch Agnew & Ryan Bridgman

Attribution: Agency release.

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New consent application lodged for America’s Cup

Published 15 April 2018

Auckland Council property arm Panuku Development Auckland lodged a new resource consent application on Friday to develop the infrastructure to host the 2021 America’s Cup yachting contest.

The new application followed approval from the council’s governing body for the revised Wynyard Hobson proposal after agreement was reached between the council, the Government & Emirates Team NZ.

Under the Wynyard Hobson proposal, up to 5 bases will be created on the eastern side of Wynyard Point, Hobson Wharf will be extended by 74m to accommodate one double base extension, and the cup defender, Emirates Team NZ, will use the Viaduct Events Centre on Halsey Wharf as its base.

The resource consent application will be posted on the Auckland Council website this Monday, 16 April, and will be publicly notified for a period of public submissions, expected to be from 30 April-28 May.

The application will remain as a direct referral to the Environment Court, with a decision expected from the court in October.

The council will make a further application to relocate SeaLink & the commercial fishing fleet once on-going investigations on alternative location options are completed.

Earlier story:
4 April 2018: More consents plus Sealink & fishing fleet relocation needed as America’s Cup agreement reached

Attribution: Council release.

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More consents plus Sealink & fishing fleet relocation needed as America’s Cup agreement reached

Auckland Council’s governing body unanimously supported hosting the 2021 America’s Cup yachting event at a special meeting last Thursday.

Councillors approved lodging a new resource consent application for the Wynyard Hobson location, agreed to by the council, the Government & Emirates Team NZ the previous Monday.

Auckland mayor Phil Goff said: “In the end we have reached a point where all 3 parties are together & ready to get down to the business of delivering a cost-effective, timely & world-class base & village experience for all New Zealanders.”

Emirates Team NZ representatives Tina Symmans & Kevin Shoebridge said: “The 3 parties have always had the same end goal in mind, with different aspects to achieve along the way, but the option agreed is an excellent option easily comparable, or better than, San Francisco, Bermuda or Valencia, so it’s very positive.”

Mr Shoebridge, Emirates Team NZ’s chief operating officer, said: “Moving into the Viaduct Events Centre is the best thing that can happen towards making it a successful defence for Emirates Team NZ.

“For us to move into a facility that will be up & running in a matter of months means we can be launching race boats in April 2019 and gives Emirates Team NZ the best opportunity to defend the cup in 2021.”

The council governing body also approved the host city appointment agreement, entered into between all 3 parties, and the cost-sharing agreement between Auckland Council & the Government.

This includes the council’s total share of $98.5 million of the $212.4 million budgeted to host the America’s Cup.

The new resource consent application to build the base infrastructure will be lodged this month and will be publicly notified for submissions. It replaces the earlier Wynyard Basin consent, agreed by the council in December, which will be withdrawn.

The consent application will remain as a direct referral to the Environment Court, with a decision expected from the court in October. The council expects overall consenting timeframes to be extended by about 2 months.

A further application to relocate SeaLink & the commercial fishing fleet will be made once on-going investigations on alternative location options are completed.

Attribution: Council release.

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Agreement in principle for Auckland to host America’s Cup

Auckland mayor Phil Goff announced an in-principle agreement today between Auckland Council, the Government & Emirates Team NZ for Auckland to host America’s Cup 36 in 2021.

The in-principle agreement confirms the location of the America’s Cup bases and is subject to a vote by the council’s governing body on Thursday.

The business of that meeting is:

  1. To update the governing body on the investigation works led by the Crown on base location options for the 36th America’s Cup and to outline the Hobson Pt option agreed by the mayor & Economic Development Minister David Parker, and
  2. To agree to proceed with the lodgement of a resource consent application for the Hobson Pt option and withdraw the Wynyard Basin resource consent application.

You can check the links to the agenda below, but there’s nothing in them. The council will post a comprehensive agenda report before the meeting.

Mr Goff said: “Today we can look forward to hosting an America’s Cup in New Zealand. It’s good for Auckland and great for Kiwis who will get to experience in person the thrill of an America’s Cup contest in 2021 and cheer our team on.

“We have agreed a base configuration that is less expensive than previous options and requires a much smaller extension into the harbour.

“It allows the earlier removal of hazardous substance tanks from the southern part of the point, is more straightforward to consent, will be quicker to construct and creates a positive legacy for Auckland.

“The cup will bring vibrancy & economic benefits to Auckland and a chance to showcase our city & harbour, cutting-edge technology & the sporting skills of Kiwis.

“Hosting the cup enables the council to improve the city’s waterfront & city centre, and the facilities can be used again at minimal cost for further cup defences.

“The land on Wynyard Pt will ultimately become a linear park which will be a great public space, and the sheltered water area between Wynyard & Halsey St wharves will also be a valuable asset for other maritime sports events such as dragon boats & waka ama.”

Mr Parker said: “I am very pleased to advise that we have succeeded in negotiating a venue on the Auckland waterfront that Aucklanders & all New Zealanders can be proud of. It significantly reduces the intrusion into the harbour at the lowest practical cost.

“Prime Minister Jacinda Ardern, mayor Goff & I all stated our commitment to limiting the intrusion into the harbour, while achieving a word-class venue for the cup event, and this delivers that.”

America’s Cup costs & base location

Mr Goff said: “Construction & related costs totalling $212 million will be shared between council & government, with council contributing $98.5 million. Included in the Government contribution is the Team NZ hosting fee.

“Under the agreement, the Viaduct Events Centre will now be home to Emirates Team NZ without extending Halsey St wharf into the harbour. One base will be on a Hobson Wharf extension and up to 5 bases on the eastern side of Wynyard Pt.

“Officials from all parties have worked collaboratively over the past several months. I acknowledge the role played by all the parties in what was a robust negotiation.

“I look forward to working with Government & Emirates Team NZ to deliver the best America’s Cup yet.”

A new resource consent will be put to the council’s governing body this Thursday and, subject to its approval, will be lodged by Friday 6 April.

The alliance design & construction partners to deliver the infrastructure for the America’s Cup have also been appointed. They are McConnell Dowell, Downer, Beca and Tonkin & Taylor.

Links:
Governing body extraordinary meeting agenda, Thursday: 9, America’s Cup 2021 – decision on location & infrastructure requirements (covering report)
C1, Confidential: America’s Cup 2021 – decision on location & infrastructure requirements (covering report)

Attribution: Council release.

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Lighter Quay unit passed in

A Lighter Quay leasehold apartment attracted bids at Ray White City Apartments’ final auction for the year today, but offers fell $25,000 short of the asking price.

Unusually, the city apartment specialist also had 2 houses listed today, in Mt Roskill & Te Atatu. Both attracted a bid but were passed in.

CBD

Wynyard Quarter

Lighter Quay Stratis, 83 Halsey St, unit 515:
Features: leasehold, 49m², fully furnished one bedroom
Outgoings: rates $1825/year including gst; body corp levy $6429/year including $3901 ground rent, residents’ society levy $201/month
Outcome: passed in after bid at $195,000, vendor asking price of $220,000 disclosed
Agents: Liz McCarthy

Attribution: Auction.

 

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2 sales out of 7 at apartments auction

2 apartments were sold today at City Sales’ final auction for the year, out of 7 on offer.

The first sale was a one-bedroom unit in the Renaissance (pictured), Manukau Central, and the other was a leasehold unit at Lighter Quay.

CBD

Learning Quarter

Tetra House, 85 Wakefield St, unit 913:
Features: 39m², one bedroom, 2 bathrooms; approved for short-term student accommodation only
Outgoings: rates $1201/year including gst; body corp levy $4794/year
Outcome: passed in at $300,000
Agent: Iona Rodrigues

Uptown

Volt, 430 Queen St, unit G01:
Features: 48m², 2 bedrooms, courtyard
Outgoings: rates $1175/year including gst; body corp levy $4703/year
Outcome: passed in at $375,000
Agent: Dave Cousins

132 Vincent St, unit GD:
Features: 73m², 2 bedrooms, parking space
Outgoings: rates $2610/year including gst for unit & parking; body corp levy $6646/year for unit & parking
Outcome: passed in at $650,000
Agent: Susan Frear

Victoria Quarter

Fiore, 152 Hobson St, unit 302:
Features: 35m² studio, deck
Outgoings: rates $1071/year including gst; body corp levy $2544/year
Income assessment: $370/week, fixed until October 2018
Outcome: passed in after a bid at $150,000 & vendor bid at $200,000
Agent: Dave Cousins

Wynyard Quarter

Lighter Quay, 77 Halsey St, unit 409:
Features: leasehold, 60m², fully furnished 2 bedrooms, 4m² deck, parking space
Outgoings: rates $1903/year including gst; body corp levy $9374/year including $4547/year ground rent, plus $2571/year residents’ society fees
Outcome: sold for $320,000
Agents: Val Luo & Maggie Sun

North-west

New Lynn

Karekare Apartments, 17 Crown Lynn Place, unit 5K:
Features: 40m², one bedroom, deck, parking space
Outgoings: rates $1061/year including gst; body corp levy $3888/year
Outcome: no bid
Agent: Trisha Shanaghan

South

Manukau Central

Renaissance, 18 Ronwood Avenue, unit 11H:
Features: 32m², one bedroom, 6m² deck, parking space
Outgoings: rates $1131/year including gst; body corp levy $2856/year
Outcome: sold for $315,000
Agent: Andy Faulkner

Attribution: Auction.

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