Archive | Central North Island

Yields track downward in 13 sales south of the Bombays

3 commercial property sales at yields below 6% were among the 13 that Bayleys agents reported from the Hauraki district down to Taupo, including 6 at Mt Maunganui & Tauranga.

South of the Bombays

Bay of Plenty


108 & 112 Main Rd:
Features: 2 adjoining sites totalling 3660m2, 2 tenants occupying a 389mshowroom/workshop with lease expiring 2017 and a 240m2 tavern leased until 2019
Rent: $92,500/year net + gst
Outcome: sold as one lot for $1.05 million at an 8.8% yield
Agents: Brendon Bradley & Graeme Coleman


4 Manukorihi Drive:
Features: 1504m² industrial site, recently refurbished, fully leased 660m² warehouse; 2 tenancies, front lunch bar & rear workshop
Rent:  $48,000/year net + gst
Outcome: sold for $505,000 at a 9.5% yield
Agents: Brendon & Lynn Bradley

Mt Maunganui

9 Prince Avenue:
Features: 645m2 site, 832m2 fully leased commercial building, onsite parking for 9 cars; 3 retail tenants on ground floor on 2 to 3-year leases, upstairs office leased to accountancy firm on lease dating back to 1984
Rent:  $163,707/year net + gst
Outcome: sold for $2.8 million at a 5.85% yield
Agents: Brendon & Lynn Bradley

2 Tay St:
Features: 810m2 corner site, 191m2 office premises, onsite parking
Outcome: sold vacant for $820,000
Agents: Brendon & Lynn Bradley


The Environment Bay of Plenty building at 1125 Arawa St, Rotorua.

The Environment Bay of Plenty building at 1125 Arawa St, Rotorua.

1125 Arawa St:
Features: 630m² 2-storey building with A+ seismic rating, purpose-built for & leased to Environment Bay of Plenty
Rent:  $105,500/year net + gst
Outcome: sold for $1.55 million at a 6.8% yield
Agent: Mark Rendell

106-112 Riri St:
Features: 2283m² site in 3 titles, 1722m² industrial building, high stud workshop areas with roller door access plus offices & onsite parking
Outcome: sold vacant for $775,000
Agents: Mark Slade & Mark Rendell


15 First Avenue:
Features: 809m2 site, 2-level 456m2 office building leased to First Mortgage Managers for 6 years from October 2015 with 2 4-year rights of renewal
Rent: $118,919/year net + gst
Outcome: sold for $2.205 million at a 5.4% yield
Agents: Brendon & Lynn Bradley

10A Mitchell St:
Features: dwelling converted for commercial use with 8-year lease to Pathlab BOP
Outcome: sold for $455,000 at a 5.9% yield
Agents: Brendon & Lynn Bradley

53 Spring St (pictured):
Features: 877m2 central business district site, 1172m2 3-level building developed in the late 1980s, basement parking for 13 cars, 2 commercial levels above; holding income from lease to ANZ Bank, which has recently vacated
Rent: $254,364/year until July
Outcome: sold for $3.8 million at a 6.7% yield
Agents: Brendon & Lynn Bradley

144 Third Avenue, unit 5:
Features: 187m² office unit spread over 3 levels in The Third Cove office park; 2 tenancies with final expiries in 2017 & 2019
Rent: $38,418/year net + gst
Outcome: sold for $595,000 at a 6.5% yield
Agents: Brendon & Lynn Bradley

Central North Island


32 Waikato St:
Features: 1171m2 cbd site, modern 629m2 showroom & warehouse with 100% new building standard seismic rating, secure yard; leased to Corys Electrical for 6 years from mid-2015, 2 4-year rights of renewal
Rent: $84,480/year net + gst
Outcome: sold for $1.36 million at a 6.2% yield
Agents: Gary Harwood & Mike Houlker



15 Princes St:
Features: 610m2 purpose-built medical centre on 1211m2 site, 6 healthcare tenants anchored by Paeroa Medical Group, on various lease terms & rights of renewal
Rent: $111,126/year net + gst
Outcome: sold at auction for $1.65 million at a 6.7% yield
Agent: Josh Smith


21 Dean Crescent:
Features: Karaka Lockups comprising 31 storage units plus a 3-bedroom home on 4155m² section with room for expansion
Outcome: sold for $653,000
Agent: Josh Smith

Attribution: Agency release.

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Browns Bay property leads sales at Colliers auction

A Browns Bay beachfront property (pictured) was sold at Colliers’ auction yesterday at a 4% yield on passing rent (one vacancy), 4.6% on potential. It has 12 tenants in 3 buildings running through from Clyde Rd to the beachfront reserve.

The one other property to sell under the hammer, in Hamilton’s cbd, sold at a 6.2% yield. A third property, an office unit in Mairangi Bay, sold post-auction.


Browns Bay

77-85 Clyde Rd:
Features: 1111m² site backing on to beachfront reserve, 1165m² net lettable area, 12 tenants in 3 buildings, potential to build to 12.5m under proposed unitary plan
Rent: current $259,543/year net + gst with one tenancy vacant), potential $295,000/year net + gst
Outcome: sold for $6.45 million at a 4% yield on passing rent, 4.6% on potential rent
Agents: Janet Marshall, Euan Stratton & Ellie Martin

Mairangi Bay

75 Corinthian Drive, unit A1:
Features: roadfront unit, 170m² office + deck, 5 parking spaces
Rent: vacant, potential $46,000/year net + gst
Outcome: passed in at $400,000, sold post-auction for $525,000
Agents: Janet Marshall & Nick Recordon


East Tamaki

42 Ormiston Rd, unit 7:
Features: 597m² office
Rent: $150,000/year net + gst, new 4×4 lease
Outcome: withdrawn from auction
Agents: Jolyon Thomson & Andrew Hooper

South of the Bombays


411-415 Victoria St:
Features: 334m² site, 240m² floor area, Heartland Bank as tenant
Rent: $116,250/year + gst + outgoings, new 10-year lease + renewals
Outcome: sold for $1.865 million at a 6.2% yield
Agents: Mark Brunton & Justin Oliver

Palmerston North

3-15 Donnington St:
Features: 3372m² site, 1708m² net lettable area, Corrections Department as tenant on new 12-year lease, 41 parking spaces
Rent: $426,980/year net + gst + opex
Outcome: passed in at $5.67 million
Agents: Doug Russell & Charlie Oscroft

4 Victoria St:
Features: 1158m² site, 324m² net lettable area, 15 parking spaces, tenant Lollipops Educare
Rent: $127,320/year net + gst + opex, 12-year lease from February 2012
Outcome: passed in at $1.62 million
Agents: Doug Russell & Phil Nevill


7 & 11 Ashwood Avenue and 107 Claret Ash Drive:
Features: 3194m² site in 3 titles, 175m² administration building, 300m² workshop, Downer NZ depot, A grade seismic rating, parking
Rent: $70,100/year + gst, 5-year term from 31 March 2015 + renewals
Outcome: passed in after $925,000 top bid & $1 million vendor bid
Agents: Justin Oliver & Mark Brunton

Attribution: Auction.

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Parties bewildered as ministers reject Pengxin purchase of Lochinver

Associate Finance Minister Paula Bennett & Land Information Minister Louise Upston said yesterday they’d turned down Shanghai Pengxin Group Co Ltd’s application to buy Lochinver Station “because the benefits to New Zealand are not substantial & identifiable”.

Pengxin, given its performance after buying the Crafar family’s portfolio of 16 farms, and Stevenson Group Ltd, after an extensive marketing campaign before selling Lochinver, were bewildered by an apparent change in Government stance.

In 2012, ministers approved the sale of the Crafar family’s portfolio of 16 farms to a Shanghai Pengxin subsidiary, Hong Kong-incorporated Milk NZ Holding Ltd. Shanghai Pengxin, headed by Jiang Zhaobai, is also majority shareholder in Synlait Farms Ltd.

Shanghai Pengxin overcame an appeal by iwi & Sir Michael Fay against its Crafar farms purchase on the basis of a Court of Appeal finding that “generic business skills & acumen” held by the directors of the local holding company.

Another subsidiary, Pure 100 Farm Ltd, signed an agreement in July last year to buy the 13,843ha Lochinver Station in the central North Island from the Stevenson Group family for $88 million.

But Mrs Bennett said: “Because Lochinver Station is classified by law as sensitive land, ministers must consider whether the application meets the requirements set out in the Overseas Investment Act.

“While we recognise & support the importance of overseas investment, the Overseas Investment Act states it is a privilege for overseas people to own sensitive New Zealand assets and therefore requires such investments to meet statutory criteria for consent.

“After detailed & careful individual consideration, we are not satisfied there will be, or is likely to be, a substantial benefit to New Zealand – a key requirement for applications of sensitive land of this size.”

The Overseas Investment Office recommended approving the application, saying the question of whether the benefits of the potential investment to New Zealand were or could be substantial & identifiable was finely balanced.

Ms Upston said: “We agreed parts of the proposed investment could benefit New Zealand but, in our judgment on the overall balance of evidence, the benefits are not likely to be substantial & identifiable.

“This proposed sale didn’t pass a test we are required to exercise ministerial judgment on. This is an example of our system working well. The Overseas Investment Office conducted a thorough investigation before making a finely balanced recommendation. Ministers carefully assessed the evidence and ultimately came to a different view.”

The Stevenson family bought its first 5260ha at Lochinver, 32km from Taupo, in 1958 and, from 1961-82 under Sir William Stevenson, 12,500ha of scrubland was converted to productive farming.

Shanghai Pengxin began as a commercial property developer in 1997 and expanded into farming in China, South America & Cambodia and copper mining in the Congo since 2005.

Shanghai Pengxin said the improvements it had made to existing assets were well known: “Pengxin has spent more than $18 million since settlement to improve the productivity & environment of the former Crafar farms to new historical levels. We are surprised & extremely disappointed with the decision and will be considering our options.”

Stevenson Group chief executive Mark Franklin was disappointed by the process & the outcome: “At this stage I am not sure we agree with the assumptions used or the way the criteria has been applied. Certainly the assumptions that have been used do not reflect our reality – we carried out extensive marketing of the farm and the hypothetical New Zealand purchaser did not come out of that process.

“We are concerned that this process has taken 14 months, with the end result that we have been deprived of our property rights to sell to the highest value bidder for some vague national benefit which has not been defined.

“We are unclear as to why this property is different to the many others that have been approved through the Overseas Investment Office process, given the obvious benefits both to the farm and to Stevenson Group.

“Beyond this transaction, this decision will have significant economic ramifications for the New Zealand economy, particularly in the areas of international relations, uncertainty of foreign investment and rural land prices.”

Link: Summary of ministers’ reasons

Earlier stories:
3 August 2014: Craig reveals Pengxin purchase of Lochinver Station
10 August 2012: Court finds Pengxin boss’s general skills & acumen enough to allow Crafar farms purchase
23 April 2012: Shanghai Pengxin gets OK to buy Crafar farms

Attribution: Ministerial, Pengxin & Stevenson releases.

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Quest opens in Taupo on Friday

Quest Serviced Apartments (NZ) Ltd will add a new property to its portfolio on Friday when Quest Taupo opens.

The purpose-built property on Kaimanawa St has 38 apartments in a mix of studios & apartments of 1-3 bedrooms and takes the accommodation chain to 36 properties. Franchise directors Shanmu Sundram and her sister, Hema, will manage it.

Quest Taupo is the second of 3 properties the serviced apartment operator is this year. Quest Nelson opened its doors in June and Quest Whangarei is scheduled to open in September.

Attribution: Company release.

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Fletcher centre in Taupo sells

One property, in Taupo, sold at Colliers International’s commercial auction today, but negotiations were continuing on the other 3. The auction of a fifth property, a warehouse in a Riverhead industrial subdivision, was postponed.


Queen St

Mid-City, 239 Queen St, unit 2A:
Features: 282m² restaurant
Rent: $90,885/year net passing income + gst, final lease expiry August 2021; rates + body corp levy $43,911/year + gst, 100% of outgoings payable by tenant; net rent $322.14/m² + gst, net opex $155.71/m² + gst
Outcome: passed in at $1.11 million
Agents: Oscar Kuang & Mark Wyness



469 Lake Rd, unit A:
Features: 61m² shop
Rent: $26,450/year net, rates + body corp levy $6456/year including gst
Outcome: passed in at $410,000
Agents: Oscar Kuang & Euan Stratton



16 Sawmill Rd:
Features: 3465m² site, 1378m² warehouse in industrial subdivision
Outcome: auction postponed
Agents: Ryan de Zwart & Jimmy O’Brien


5 Cabernet Crescent, unit 1:
Features: 1242m² site, 14 parking spaces, leased to Repco
Rent: $147,000/year net + gst, final lease expiry March 2021
Outcome: passed in at $1.7 million
Agents: Charlie Oscroft & Will Dromgool

South of the Bombays


66 Crown Rd:
Features: 7401m² site, net lettable area 2580m² – warehouse 1207m², trade hall 1050m², office 323m², yard 3440m²; new PlaceMakers & Mico Plumbing Centre completed this month, tenant Fletcher Distribution Ltd on 9-year lease
Rent: $305,000/year + gst (to be finalised)
Outcome: sold for $5.35 million
Agents: Mark Brunton & Andrew Hooper

Attribution: Auction.

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Craig reveals Pengxin purchase of Lochinver Station

Shanghai Pengxin Group Co Ltd, buyer of the Crafar family’s farm portfolio & majority shareholder in Synlait Farms Ltd, has signed an agreement to buy the 13,843ha Lochinver Station in the central North Island from the Stevenson Group family.

The rural station, 32km from Taupo, was put on the market for the first time in 54 years last December through a Bayleys tender, which closed in February. It has carrying capacity assessed at 105,000 stock units, and was promoted with an expectation that its capacity would soon increase to 120,000 stock units.

Shanghai Pengxin’s acquisition, through local subsidiary Pure 100 Farm Ltd, requires regulatory approvals from the Overseas Investment Office & Chinese regulatory authorities.

Conservative Party leader Colin Craig revealed the transaction, still conditional, on Friday and said his party would oppose all substantial land sales to foreign business interests.

Shanghai Pengxin has a controlling interest in Synlait Farms owner SFL Holdings through NZ Standard Farm Ltd & Milk NZ Holding Ltd. Through Milk NZ Holding, the group bought the Crafar family’s 16 farms from their receiver in 2012.

Shanghai Pengxin separated Synlait Farms from Synlait Ltd in February to create 2 pure-play investments after Synlait Ltd had an unsuccessful capital-raising. Synlait Ltd now holds 49% of Synlait Milk Ltd, owner of the group’s milk manufacturing assets. At the separation point, Mitsui & Co Ltd sold out of Synlait Farms, ending a 5-year relationship.

The Chinese group plans to secure operational synergies between Lochinver & some of its neighbouring North Island farms. It also secured a 74% stake in 13 South Island farms in March and has committed to capital improvements and implementing innovative industry concepts.

Stevenson Group has been a force in road & infrastructure development for more than a century, supplying aggregates & concrete-based building products and mining & quarry management. The company got approval a year ago to rezone 361ha of rural & quarry land at Drury South for a mix of industrial & business development.

Jackie Harrigan gave the history & current state of Lochinver Station in an article in Young Country magazine last year. Among the points in her story was the strongly growing China connection through regular shipments of Friesian dairy heifers – up to 14,500 shipped out at a time through Napier.

The Stevenson family bought its first 5260ha in 1958 and, from 1961-82 under Sir William Stevenson, 12,500ha of scrubland was converted to productive farming.

Shanghai Pengxin began as a commercial property developer in 1997 and expanded into farming in China, South America & Cambodia and copper mining in the Congo since 2005.

Links: Young Country, Lochinver legacy
Milk NZ

Attribution: Company release.

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Sax buys Kinloch course

Published 29 July 2011

John Sax of Southpark Corp Ltd has bought the Kinloch golfcourse, with plans for a luxury lodge. The course also has consent for 69 residential sites.

Southpark revealed its purchase yesterday.

Coromandel Investment Trustees Ltd bought the 311ha Kinloch golf resort (apart from some subdivision land) from Hanover Finance Ltd for $26 million in a 2008 mortgagee sale, shortly before the previous owner, Kinloch Golf Resort Ltd, went into liquidation owing $49 million. Coromandel Investment Trustees sold the course to Van den Brink interests last year and the trustee company went into liquidation last July. The van den Brinks put the course back on the market this year.

The Jack Nicklaus-designed course opened in 2007.

Southpark is mainly an industrial property developer, but Mr Sax also owns the Treetops resort near Rotorua and bought Patrick Fontein’s Kensington Park project at Orewa from the receivers in 2009.

Earlier stories:

25 February 2011: Neighbours criticise council conflict on Kensington Park plan change & resource consents, with no response

29 August 2010: Sax seeks more intensity at Kensington Park

26 June 2009: Sax signs cash deal to buy Kensington Park


Want to comment? Go to the forum.


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

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Taupo industrial subdivision application

Published 17 January 2010

Jurisdiction: Taupo District


Neighbourhood: Taupo


Applicant: CNI Developments Ltd (Joshua Hannen & Michael Jacobs, Taupo)


Application detail: 315 Centennial Drive, industrial subdivision & land use applications for 15 lots of 5001-7776m²


Notification date: 15 January


Submission closure date: Friday 12 February


Other details: Mr Hannen & Mr Jacobs are directors of Advance Civil Construction Ltd & Advance Services Ltd.


Want to comment? Go to the forum.


Attribution: Council notice, story written by Bob Dey for the Bob Dey Property Report.

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Taupo Westpac building sells below 5%

Published 9 December 2008

The Westpac bank in Taupo’s commercial centre has been sold at auction for $2.695 million, at a yield below 5%.


Gary Harwood, of Bayleys Taupo, said the 544m² 2-level building, on a 390m² site at 27-29 Horomatangi St, attracted interest from all over New Zealand, with 8 registered phone bidders & plenty of competition on the auction floor as well.


It was eventually sold to a Christchurch phone bidder after 129 bids were received, at a 4.8% yield on its current net annual rental income of $130,500. Westpac has a 9-year lease until mid-2010, with rights of renewal until 2019.


The sale price was well in excess of the property’s current capital valuation of just over $2.1 million.


Mr Harwood said the sale price showed the strength of a market like Taupo, which has a very compact cbd: “The purchaser was not so much concerned about the initial yield but was focused on the long-term strength of the location, in the heart of Taupo’s retail area, where there is less vacancy risk than in a larger market. It was also a well maintained, easy maintenance building, obviously with a very strong tenant.”


Mr Harwood said there were hardly ever vacant retail outlets in the Taupo cbd: “This has placed pressure on current & prospective tenants wanting to be located in the most frequented areas, who have to pay a premium for it. However, this situation has worked to the advantage of investors in Taupo cbd retail property because it has put pressure on rentals & yields, which has generated capital growth.”


Want to comment? Email [email protected].


Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

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Hanover’s tender gets buyer for Kinloch golfcourse

Published 10 July 2008

Hanover Finance Ltd said today a sale had been agreed for assets specifically associated with Kinloch Golf Resort Ltd.


Hanover held a secured first mortgage over the Kinloch assets, including the golfcourse and bulk development sites within the project.


Chief executive Bruce Gordon said Kinloch had been sold after a tender process for an undisclosed sum to a local buyer who intended to continue to add value to the development. Hanover sought a mortgagee sale of the assets in May to protect value in the assets for its investors.


Shareholder Peter Yocky, of New Mexico, & Hsiu-Chuan Lee went to court to apply to liquidate Kinloch Golf Resort (William Ormerod, Devonport). The application was set down for hearing on Friday 18 July.


Want to comment? Email [email protected].


Attribution: Hanover release, story written by Bob Dey for this website.

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