Archive | Canterbury

Augusta to resyndicate & add to Airways premises

Augusta Capital Ltd has entered into a development agreement with Airways Corp of NZ Ltd and the existing Augusta-managed syndicate that owns Airways’ Christchurch premises.

Augusta managing director Mark Francis said on 22 December the agreement provided for the development of a new “importance level 4” building which will house part of Airways’ new air traffic management platform. In return, Airways is committing to:

  • an extended 25-year lease term on the new building & 2 of the existing buildings (effective from practical completion, which is expected to occur in mid-2019); and
  • a 9-year lease term on the remaining building (which begins at a date elected by Airways between 12 & 18 months after practical completion)

Mr Francis said the agreement was conditional on receipt of a resource consent, approved funding terms & the approval of the investors in the existing syndicate which owns the property. These conditions are due to be satisfied by 30 January.

To fund the landlord’s development obligations, Augusta Capital subsidiary Augusta Funds Management Ltd proposes to re-syndicate the property, giving existing investors a preferential right to invest in it.

Mr Francis said Augusta Capital would underwrite $15 million of the $22.75 million of equity proposed to be raised in the resyndication, and a third party would underwrite the balance.

In addition, Augusta Capital has guaranteed the existing syndicate’s obligations, which will be released once the new syndicate is established and the required equity & debt raised.

Augusta expects the new syndicate to be established by 29 March.

Attribution: Company release.

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NPT accepts 25% cut to sell Christchurch property

NZX-listed property investor NPT Ltd said yesterday it had accepted an offer from a private investor to buy its Print Place, Christchurch, industrial property for 25% less than its carrying value.

Chair Bruce Cotterill said the NPT board had agreed this property no longer fitted with its preferred strategy and therefore should be sold.

Although the company had achieved higher than average yields on it, “this location & type of commercial property is no longer in strong demand. The property is now experiencing tenancy vacancies and requires substantial capital investment.”

NPT got 3 offers through a tender campaign, and Mr Cotterill said an $8.25 million offer from a South Island investor was deemed most attractive based on a number of factors, including having the fewest conditions attached.

“Although the offer is below the current carrying value of $11 million, it is the view of the NPT board that the sale price achieved allows the company to arrest ongoing losses and to reinvest capital into opportunities which offer better long-term value growth.”

Attribution: Company release.

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Rosedale unit leased & sold, Remuera shop leased, provincial sales

A Rosedale business unit has been leased & sold, a Remuera shop has been leased, and warehouses in Christchurch & Napier sold by Colliers agents.

Sales

North-east

Rosedale

39-43 Apollo Drive, unit 8:
Features: 136m² unit, 4 parking spaces
Outcome: sold in October for $670,000 at a 6.1% yield after being leased for $41,000/year net
Agents: Janet Marshall & Nick Recordon

South Island

Christchurch

163 Wordsworth St, unit 2:
Features: 238m² refurbished warehouse
Outcome: sold at auction for $400,000
Agents: Christian Kellar & Oliver Salt

South of the Bombays

Hawke’s Bay

Napier

78 Taradale Rd & 32 Severn St:
Features: 6886m² warehouse/showroom & partly leased 3982m² industrial site
Outcome: sold as trade deals, Taradale Rd for $3 million, Severn St for $686,000
Agent: Danny Blair

Leases

Isthmus east

Remuera

360 Remuera Rd:
Features: 274.1m² shop, leased to Bed Bath N Table
Agent: Nilesh Patel

South of the Bombays

Wellington

Petone

8 Te Puni St:
Features: 1604m² office, leased by Cook Strait Properties Ltd to Mavero Ltd (Flip Out franchise) for a 6-year term
Rent: $250,000/year + gst
Agent: Ben Taylor

Attribution: Agency release.

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Remuera shop leased, provincial sales

A Remuera shop has been leased, and warehouses in Christchurch & Napier sold by Colliers agents.

Sales

South Island

Christchurch

163 Wordsworth St, unit 2:
Features: 238m² refurbished warehouse
Outcome: sold at auction for $400,000
Agents: Christian Kellar & Oliver Salt

South of the Bombays

Hawke’s Bay

Napier

78 Taradale Rd & 32 Severn St:
Features: 6886m² warehouse/showroom & partly leased 3982m² industrial site
Outcome: sold as trade deals, Taradale Rd for $3 million, Severn St for $686,000
Agent: Danny Blair

Leases

Isthmus east

Remuera

360 Remuera Rd:
Features: 274.1m² shop, leased to Bed Bath N Table
Agent: Nilesh Patel

South of the Bombays

Wellington

Petone

8 Te Puni St:
Features: 1604m² office, leased by Cook Strait Properties Ltd to Mavero Ltd (Flip Out franchise) for a 6-year term
Rent: $250,000/year + gst
Agent: Ben Taylor

Attribution: Agency release.

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5 sales by Colliers

Colliers agents have sold a Victoria Park Market restaurant and a Rosedale office in Auckland. In the South Island, the agency has offices in Christchurch & Dunedin and a quake-damaged motel in Christchurch.

CBD

Victoria Quarter

Victoria Park Market, Drake St, unit 74:
Features: 268m² net lettable area, New York-style restaurant & bar, the Oak Room, on 6.5-year lease
Rent: $100,794/year + gst     
Outcome: sold for $1.3 million at a 7.8% yield
Agents: Adam White, Simon Felton, Gareth Fraser & Tony Allsop

North-east

Rosedale

9C William Pickering Drive:
Features: 377m² 2-level office     
Outcome: sold by private investor to owner-occupier Zen Connections Ltd for $1.395 million
Agents: Janet Marshall & Kerry Cook

South Island

Christchurch

Merivale

49 Papanui Rd:
Features: quake-damaged former Adelphi motel, 1517m² site, 12 motel units & a manager’s unit
Outcome: sold at auction for $1.7 million on an “as is, where is” basis
Agents: Will Franks & Mark Macauley

Rolleston

7 Tennyson St:
Features: 2781m² site, 261m² retail, new 10-year lease to Restaurant Brands Ltd
Rent: $170,000/year net + gst     
Outcome: sold at auction for $3.215 million + gst at a 5.3% yield
Agents: Courtney Doig & Charlie Oscroft

Dunedin

ASB House, 248 Cumberland St, levels 1 & 2:
Outcome: sold for $2.825 million at a 7.6% yield
Agent: Dean Collins

Attribution: Agency release.

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11 South Island commercial sales

Bayleys agents in the South Island have completed 9 sales in Christchurch and 2 more in Ashburton & Nelson.

South Island

Christchurch

Addington

24 Clarence St South:
Features: 510m² vacant industrial building, 8 parking spaces, sealed yard, 328m² warehouse, 140m² of offices over 2 levels, 90m² mezzanine
Outcome: sold vacant for $735,000 at a 6.99% cap rate on expected rental
Agents: Stewart White, Chris Frank & Alex White

Hornby

31 Canada Crescent:
Features: 3050m² site-year-old 1609m² industrial building – 1344m² of 6.5m-high clearspan warehouse, 265m² showroom/office, seismic rating 100% of new building standard, 29 parking spaces, leased to international company Pentair on 5-year lease from February 2014 with 2 5-year rights of renewal
Rent: $190,000/year
Outcome: sold for $2.55 million at a 7.45% yield
Agent: Nick O’Styke

45 Carmen Rd:
Features: 2256m² high profile corner service station with retail area & 25 parking spaces, occupied by Gasoline Alley with 5 years to run on initial 8-year lease term & 3 4-year rights of renewal
Rent: $164,834/year         
Outcome: sold for $2.3 million at a 7.1% yield
Agent: Nick O’Styke

15 Green Lane, unit 1:
Features: shared 1732m² site, 368m² north-facing industrial building, seismic rating 77% of new building standard, 8 parking spaces
Rent: $54,000/year
Outcome: sold for $773,000 at a 6.99% yield on well established tenancy
Agent: Nick O’Styke

Islington

6 Doric Way:
Features: 3414m² of industrial land in Waterloo Business Park
Outcome: sold to an owner-occupier for $857,750 at $250/m²
Agents: Stewart White, Alex White & Chris Frank

Richmond

245 Stanmore Rd:
Features: 1469m² site, 360m² building
Outcome: sold for $650,000 at a 5.8% yield, currently on a month-to-month lease
Agents: Stewart White, Chris Frank & Alex White

Sockburn

29 Epsom Rd:
Features: 830m² site, 498m² industrial building split into 2 units, seismic rating 90% of new building standard, 2 established tenants, 9 parking spaces
Rent: $75,000pa + gst      
Outcome: sold for $1.2 million at a 6.25% yield
Agent: Nick O’Styke

14 Watts Rd:
Features: 1.1279ha site, 5628m² warehouse & office building, large amount of parking
Rent: $502,918/year from lease that expired 31 October
Outcome: sold for $5.5 million
Agents: Stewart White, Chris Frank & Alex White

Woolston

33 Maunsell St:
Features: 1312m² site zoned industrial general, 2 adjoining tilt-slab warehouses totalling 410m², 40% & 60% seismic assessments, plus 3-bedroom dwelling with separate entrance
Rent: assessed market rental $50,000/year net
Outcome: sold with vacant possession for $672,000
Agents: Greg Mann & Garry Ottmann

Mid-Canterbury

Ashburton

390 East St:
Features: 994m² site, 1329m² former Ministry of Works building, seismic rating 40% of new building standard, lease back to NZ Post until October 2020 with one 3-year right of renewal, 2 additional casual tenancies and 396m² of vacant space
Outcome: sold post-auction for $562,500 at a 9.96% yield
Agents: Blair Young & Mitchell Wallace

Nelson

Tahunanui

47 Muritai St:
Features: 2001m² site, 2-storey 480m² motel complex comprising 14 units, 3-bedroom manager’s residence
Outcome: sold freehold for $1.37 million at a 6.4% yield, lease in place until November 2046
Agent: Gill Ireland

Attribution: Agency release.

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6 sales south of Bombays, 3 in Christchurch development in Total Property auction series

6 properties south of Auckland were sold last week in Bayleys’ Total Property 7 auction series down the North Island.

In Christchurch, 3 units in a 17-unit development by Latitude Group Ltd (Ken Wimsett & Callum Baker) were sold in the Total Property auction. The developer envisaged uses would range from retail, office, hospitality & commercial services to trade supplies.

South of the Bombays

Bay of Plenty

Mt Maunganui

314 Maunganui Rd, units E & F:
Features: 2 adjoining office units totalling 223m², on the ground floor of Custom House commercial complex in high profile corner position; Bayleys’ franchisee Success Realty Ltd has occupied for past 10 years & renewed for further 10 years from October 2017, with 2 5-year rights of renewal
Rent: $99,668/year net + gst
Outcome: sold for $2.22 million at a 4.49% yield
Agents: Brendon & Lynn Bradley

Hawke’s Bay

Havelock North

2A Lindsay St:
Features: 472m² site, 195m² single-storey commercial building, seismic assessment 75% of new building standard, 5 parking spaces; occupied by hair stylist on 12-year lease from September 2016 following completion of building extension for a beauty clinic division
Rent: $45,751/year net + gst
Outcome: sold for $815,000 at a 5.61% yield
Agent: Jacob Smith

Taranaki

New Plymouth, Bell Block

29-37 Paraite Rd:
Features: 1.084ha site, dual access, 2182m² industrial building including 621m² of canopies; international oil & gas company has occupied the site since 2012 on 7-year lease with 3 one-year rights of renewal
Rent: $199,112/year net + gst
Outcome: sold for $2.6 million at a 7.66% yield
Agents: Alan Johnston & Iain Taylor

Wellington

Gracefield

21-29 Bell Rd South, unit 6:
Features: 475m² tilt slab industrial unit built in 2008 and occupied since then by Fletcher Building subsidiary Foreman Commercial Interiors Ltd, current lease until June 2020 & no renewal right; 217m² high-stud warehousing plus 258m² of offices over 2 levels, 8 parking space
Rent: $70,400/year net + gst
Outcome: sold for $1.04 million at a 6.77% yield
Agent: Richard Faisandier

Petone

216 Jackson St:
Features: 227m² site, 313m² 2-level mixed-use building, ground-floor 138m² dairy, rear access to courtyard, 175m² 3-bedroom character apartment above completely refurbished in 2009
Outcome: sold for $1.1 million at a 5.5% yield on periodic tenancies
Agents: Andrew Smith & Paul Cudby

30-32 Waione St:
Features: 1568m² corner redevelopment site zoned general business, in 2 titles, 3 street frontages; 625m² of industrial buildings, large yard area at rear
Rent: holding income $91,650/year gross + gst until 30 April 2018
Outcome: sold for $1.4 million
Agents: Andrew Smith & Richard Faisandier

South Island

Canterbury

Ferrymead

987 Ferry Rd, unit 2:
Features: 158m² unit, 4 parking spaces on own titles in retail complex opened last year; 10-year lease to law firm Saunders & Co plus 3 5-year rights of renewal
Rent: $58,455/year net + gst
Outcome: sold for $1.028 million at a 5.69% yield
Agents: Blair Young & Mitchell Wallace

Unit 6:
Features: 292m² unit, 7 parking spaces; 2 tenancies, one with a 10-year lease to Moroccan restaurant & the other with a 6-year lease to Bayleys’ Canterbury franchisee Whalan & Partners Ltd, both with further renewal rights
Rent: $122,798/year net + gst
Outcome: sold for $1.935 million at a 6.35% yield
Agents: Blair Young & Mitchell Wallace

Unit 10: 
Features: 209.5 unit, 6 parking spaces; ANZ Bank has done an extensive fitout and has a 6-year lease from July 2016, with 3 3-year rights or renewal, 3-yearly market rent reviews plus annual CPI-indexed increases
Rent: $71,332/year net + gst
Outcome: sold for $1.3 million at a 5.48% yield
Agents: Blair Young & Mitchell Wallace

Attribution: Agency release.

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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.

Links:

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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4 commercial leases in Auckland & Christchurch

Knight Frank agents have secured 4 commercial leases, 2 on the Auckland isthmus and 2 in Christchurch.

Leases

Isthmus east

Ellerslie

130B Main Highway:
Features: 70m² office, storage shed, 4 parking spaces
Rent: $25,000/year net + gst + opex      
Agent: Sophie Dixon

Mt Wellington

1066 Great South Rd, unit R:
Features: 75m² warehouse & amenities, 73m² mezzanine office, 2 parking spaces
Rent: not disclosed  
Agent: Scott Worrall

South Island

Canterbury

Christchurch cbd

137 High St, level 1:
Features: 100.8m² first-floor office, 63.4m² balcony
Rent: $31,971/year net + gst + opex      
Agent: Tom Lax

Halswell

3 Kennedy’s Bush Rd, ground floor unit 3:
Features: 45m² ground-floor office unit, parking space
Rent: $15,000/year net + gst + opex      
Agent: Campbell Taylor

Attribution: Agency release.

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4 industrial property sales for Colliers

The Vijay Frame & Truss business and clothing company AS Colour Holdings Ltd’s head office & distribution facility, both in Henderson, have been sold through Colliers.

In Grey Lynn, a small light industrial building on Mackelvie St has been sold, and a Christchurch warehouse has been sold.

Isthmus west

Grey Lynn

36 Mackelvie St:
Features: light industrial building, 4 parking spaces
Outcome: sold for $2,316,750 at a 2.9% yield
Agents: Charlie Oscroft & Kris Ongley

North-west

Henderson

9-11 Aetna Place:
Features: Vijay Frame & Truss business, part of Vinod Kumar’s Vijay Holdings Ltd group
Outcome: sold for $900,000
Agents: Pauras Rege, Marcus Jacobson & Shelley May

84 Central Park Drive:
Features: 6735m², Australasian clothing company AS Colour Holdings Ltd’s head office & distribution facility
Outcome: sold for $9.2 million at a 5.1% yield
Agents: Andrew Hooper & Dwayne Warby

South Island

Canterbury

Christchurch, Phillipstown

15 Phillips St:
Features: 897m² site, 766m² refurbished warehouse – 510m² warehouse, 150m² consented mezzanine, 106m² office, 7 parking spaces
Outcome: sold at auction for $991,000
Agents: Christian Kellar & Paul Marshall

Attribution: Agency release.

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