Snapshot of the Week is designed to improve what you get out of this website, particularly for people who find their printouts contain repetition.
The weekly snapshots will be a composite of the Local and World Business and Property Snapshots series, plus headlines on other stories compiled during the week.
The Snapshot items will also appear under their own categories.
As those monthly categories have been getting extremely long, I plan to break them down to weekly presentations as well, but will store them in monthly groups in the archives. As this is new, starting on a Friday and won’t be backdated, the first edition will run for 10 days. If it works, it’ll continue.
Calan positions for growth
Calan Healthcare Properties Trust tells its unitholders at the annual meeting the decline in financial performance in the year just gone should be followed by sound growth on the basis of construction to start in the new year, and careful positioning in Australia.Manukau consents activity update
Resource consent applications in Manukau City were down 8% in number and 36% in value in October, compared to October 1999, and for the year to October were down 18% in number and 20% in value. Given that the market was irrationally overheated in 1999 â€” residential consents were up 20-25% every month on a sensible level â€” the 2000 figures don’t make disastrous reading. Go to Locality/Manukau/Consent activity for the latest Manukau picture.Bayleys’ Total Property
Bayleys has turned over more than $14 million at its Total Property auctions in Auckland and Christchurch of commercial and industrial stock.Property Council research
The Property Council has set out a framework for a retail sales survey to be started in January. Statistics measured will include sales/mÂ²/month and moving annual totals, and annual changes based on those figures.Snapshot on Manukau
Manukau City Council’s new incentive fund has made its first reimbursement of costs â€” $7095 to Pillsbury NZ Ltd, maker and marketer of fresh pasta and pasta sauces under the Frescarini brand.
Manukau City Council has launched a business investment website (External links/Local government/Manukau City: business investment) containing information on profitable opportunities and business advantages the city is promoting.Leasing strong
Colliers Jardine managing director Mark Synnott says another officer tower could be built in downtown Auckland in 4-6 years. Mr Synnott said 1999 was already dwarfed by leasings this year â€” 80,000mÂ² to tenants requiring at least 1000mÂ², compared to 70,000mÂ² to big tenants last year â€” and he expected the figure to reach 100,000mÂ² by year’s end.Regional growth forum
Auckland’s regional growth forum supported the staged development of East Tamaki, Takanini and Hingaia as proposed in the southern sector agreement, rather than holding it back as would have happened if North Shore City Council had got its way. But a proposed shift of the metropolitan urban limit at Henderson to include 80ha on the Babich vineyard block will have to go through the sector agreement process, after Waitakere City Council failed to win support for an immediate rezoning.Tasman Agriculture
Tasman Agriculture has unconditional contracts totalling $106 million for the sale of 28 farms, most settling next June, two in June 2002. The listed company, 66% owned by Brierley Investments, has sold a total 6400ha at an average $16,577/ha, 20% above the May 2000 book values. On the 6.58kg of milk solids produced in the season to May 2000, the sale prices represent an average of $16.12/kg milk solids. The latest sale, $2.7 million for 180ha at Lauriston, Mid-Canterbury, represented $16.57/kg milk solids. Tasman Ag has another three properties conditionally sold for $8 million and has several more on the market.North Shore planning
North Shore City councillors had a busy day yesterday looking at the future of their city and the Auckland region. They expressed concern at pushes for rapid development in the south and west, with the suggestion that regional growth could be distorted, couldn’t draw the line on the development map for Okura, got a progress report on the ultimate grand plan. The first of those stories is in Sector/Regional growth and the other two are under Locality/North Shore headings.Waterfront auction
Bayleys gets four sales in its Christmas waterfront auction, with negotiations continuing on some of the biggest items offered. (Details under Organisations/Agencies/Bayleys).Snapshot on World Business
American companies are delighted to be able to take over businesses worldwide, but reciprocation isn’t always well received. A South Carolina Democratic senator, Ernest Hollings, is firmly opposed to Deutsche Telekom’s involvement in the application by US mobile phone company VoiceStream Wireless Corp for wireless spectrum in an auction starting on 12 December. Deutsche Telekom, 56% owned by the German Government, has 11.5% of VoiceStream, is allowed 25% before it gets disqualified as a foreign bidder, but is said to be buying VoiceStream.
Former Rothschild executive managing director Wilbur Ross’ Asia Recovery Fund has pulled out of buying Tokyo Sowa Bank, a deal which was not helped by the arrest of four former executives in May for cooking the books to make the accounts look healthy. Mr Ross agreed in June to buy the bank, which had a Â¥102 billion ($NZ2.25 billion) capital deficit. Provisions against loan losses have been at issue since then.Snapshot on World Property
Keppel Land of Singapore has paid $S229.5 million ($NZ308.8 million) at $NZ3220/mÂ² for three residential lots totalling 9.6ha in the prime Jingan district of Shanghai’s central Puxi. It will build about 3000 homes, aimed at Shanghai’s middle-income earners.
Singapore developer and investor Centrepoint Properties Ltd raised net profit for the September year by 29% to $S95 million on turnover up 46% to $S373 million, on full year’s earnings from the Causeway Pt shopping centre and Alexandra Techno Park block B. It did not recognise $S46.5 million of investment property revaluation gains in the result. Centrepoint’s next major project will be the 600-unit Compass Heights at Sengkang.
British cement and readymix supplier RMC has sold its Great Mills chain of 98 DIY superstores to Focus Do It All, owned by venture capital group Duke Street Capital, for Â£285 million ($NZ966 million). Others in the hunt were Home Depot of the US and Kingfisher. Great Mills made Â£25.3 million profit on Â£318.5 million turnover last year, a 7.9% net return.
British leisure and hotels group Bass plans to raise its profile internationally after collecting Â£2.3 billion ($NZ7.8 billion) from Inter-Brew of Belgium for its brewing business. Bass said it was in only 77 of the 200 resorts of the world and would increase representation of upmarket brands such as Inter-Continental. It would also seek opportunities in Europe and Asia for its Express and Holiday Inn hotels and spread its extended-stay Staybridge Suites concept through US franchising. Bass’ pretax profit for the year to September was Â£756 million ($NZ2.56 billion), turnover on continuing operations rose 22.8%, and operating profit on continuing operations rose 24.8%.
Aggressive Japanese clothing retailer Fast Retailing plans to open 50 stores in Britain, its first venture outside Japan. It has 465 stores back home, where it has been taking trade from Japan’s ailing traditional department stores.
A single bid of $HK2.58 billion ($NZ774 million) by Amoy Properties has won it a 20,200mÂ² West Kowloon waterfront development site in the latest government land auction. Amoy plans to build an 18,600mÂ² shopping mall, with eight towers of 41-42 storeys above it, containing 1700 residential units. Far East Consortium International paid $HK21 million ($NZ6.3 million) for a 2790mÂ² residential lot in Sai Kung.
The British Government has introduced the Homes Bill to speed up house sales, reputedly the slowest in Europe for a variety of bureaucratic reasons, end gazumping, give tenants more strength through a body corporate-styled “commonhold associations,” and curb landlord powers. A proposed seller’s pack, expected to cost Â£500-1000 a pop, must contain information about local body searches, planning permits and a house condition report â€” and it is proposed to be illegal to sell a house without one.
South Korea’s second largest builder, Dong Ah Construction, went into receivership last month after failing to pay interest for six months on 470 won of loans, but its share price leapt this week on reports that it’s discovered the wreck of the Donskoi, sunk during the Russia-Japan war a century ago with gold bars on board supposedly worth 150 trillion won. Dong Ah says it has a shipwreck, but hasn’t confirmed the ship’s identity.
In Pittsburgh, the Golden Triangle Community Development Corp has proposed turning 11,600mÂ² of space above a department store and several other buildings into a technology incubator district, complete with cyber cafÃ©s and loft apartments, and with rent around $US10-12/ftÂ² ($US107-129/mÂ²). In a rather familiar tale, they were trying to save the buildings from the mayor’s now-defunct renovation plans. Both the department store and mayor were named Murphy.
SL Green Realty Corp has signed to sell the 633 Third Ave Condominium for $US13.25 million, three years after buying it in a four-building deal for $US9.8 million. The buyer, Joseph Nakash of Third Avenue Realty and Jordache Enterprises, gets 3770mÂ² of ground-floor and concourse retail outlets at the base of a 41-storey Midtown Manhattan commercial condominium building. For condominium, read boutique/specialty/suite.
US reits (real estate investment trusts) are in their fourth-quarter dividend-declaring season, a period which seems to focus on the number of cents the biddies will get for Christmas. The focus is definitely not on percentages, and whether a share price is higher or lower seems irrelevant. They are, in effect, treated like bonds, with a proviso at the bottom of every statement saying their projections might not be fulfilled. The latest result comes from AMB Property Corp, an industrial reit which targets high throughput distribution (HTD) properties. Last month it added 83,000mÂ² in 20 on-tarmac air cargo sheds at eight airports Federal Express occupies nearly 30% of its new space.
Cousins Properties and Prudential Insurance (holding 11.5% of a joint venture) have bought the 35,200mÂ², 28-storey One Georgia Centre on West Peachtree St in Midtown Atlanta for $US35 million. It has a 1:30mÂ² parking ratio, 1171 parking spaces on four basement floors and seven in a separate structure, and an adjacent site zoned for a similar-sized tower. Cousins’ property interests range across office, retail, medical and development.
Private Californian apartment investor Pacific Property Co has bought one 406-unit Santa Ana complex from the Pacific Gulf Properties reit for $US35.55 million and two from a San Francisco developer for $US24.35 million, taking its portfolio to 3600 units at a $US325 million cost. The value assessment is on occupancy (95% for one, 99% for the other two) and average monthly rent: $US888 for the Santa Ana one, $US1111 and $US1138 for the other two.
Henderson Land Development chairman Lee Shau-kee told the company’s annual meeting Hong Kong’s mass-residential market would stay flat next year, but the company will not slash prices on 2000 unsold units because to do so would jeopardise profits. Other big Hong Kong property companies, such as Sun Hung Kai, New World Development and Cheung Kong Holdings, are more optimistic about price rises.
Hong Kong’s residential development market will be tested this week with the auction of two properties in West Kowloon and Sai Wan Ho on Thursday and the tender on Friday of a Sai Kung property, expected to earn the Government $NZ1-1.6 billion. Developers have been cutting prices for months to achieve sales.
Industry Superannuation Property Trust’s Riverside Corporate Park at North Ryde has been tipped in the Australian Financial Review as the site for Canadian internet and telecommunication company Nortel Network’s new Sydney headquarters â€” at least 25,000mÂ² at rent exceeding $A300/mÂ². Nortel would consolidate two existing Sydney properties there, but is also taking 8500mÂ² in airport suburb Botany for Phototonics Technologies, its optical network components company. The other main competitor for the headquarters site was the redeveloping Pyrmont Peninsula.
Eight people died in the collapse of a popular shopping mall in Guangdong Province, China. The temporary single-storey building, erected over a drainage ditch, crumbled when two unauthorised extra floors were built on top by the tenant.
Westpac Bank in Australia has handed over management of the Westpac Property Trust after the unitholders agreed to turn it into a self-contained property investment and management group. Shares in the manager have been stapled the existing units and the combined entity will be known as the Investa Trust Group. It will still earn most of its money from Westpac-related business, but has already launched one new fund, the $A43 million Collins Property Trust syndicate.Rodney Consent activity
Universal Homes Ltd has won approval for its 294-house subdivision on 28ha at Silverdale North.
Rodney District Council’s principal planning commissioner, Ken Graham, is satisfied with changes made to a proposed seven-level commercial and apartment building on Florence Ave, Orewa, which was originally turned down in August.
Graeme Hinton’s project is planned for industrial-zoned land overlooking single-storey residential properties, one of whose residents, Mrs Anne Janssen, remains opposed to the project. Mr Graham granted consent to the revised project yesterday, leaving Mrs Janssen and the National Trading Co, parent of the New World supermarket chain which wanted more parking provided, to pursue an appeal to the Environment Court.
Rodney planning commissioners, independent operators of the district’s regulatory system since the councillors resigned/were suspended eight months ago, have occasionally questioned the proposed provision of parking for which council officers have recommended that resource consent applicants should pay financial contributions towards.
Those questions took positive effect yesterday, when commissioner Ken Graham agreed to waive the fee for an 11-car shortfall in a new development at the Manly shops at 54-56 Rawhiti Rd, on the Whangaparaoa Peninsula.
Consent was granted in April, but developer Peter Rigg (Pamber Auckland Ltd) argued future financial contributions should only be payable if the council had a firm proposal to provide additional parking in a location which would serve the development. He also argued he have input into a future parking survey and who will carry it out. A contribution may become payable once the council has a firm parking scheme to develop.