2 hotels sold out of Millennium & Copthorne franchise
Goodman completes 2012 Highbrook acquisition
PFI gets 5% valuation lift
Zara the next big name for Sylvia Park
Fletcher Building scores the Rainbow tick
3 Eastgate lease agreements go unconditional
2 hotels sold out of Millennium & Copthorne franchise
Millennium & Copthorne Hotels NZ Ltd said yesterday its franchise & management arrangements for the Kingsgate Hotel Hamilton & Kingsgate Hotel Whangarei would end in 5-7 weeks. Managing director BK Chiu said: “Both of these have been owned by the Butcher family, who have been Millennium & Copthorne’s franchise partners for over 18 years. The family made the decision that the time was now right for them to sell the hotels and agreement has been reached with a new owner.
Therefore, Millennium & Copthorne will no longer represent these hotels at the conclusion of the respective franchise agreements on 25 January for Kingsgate Hotel Whangarei and 11 February for Kingsgate Hotel Hamilton.”
Goodman completes 2012 Highbrook acquisition
NZX-listed Goodman Property Trust issued 37,335,624 units to ASX-listed Goodman Group at $1/unit on Monday to complete payment for the $186.6 million December 2012 acquisition of partners’ interests in the 17.5ha Highbook Business Park.
Goodman Group took all its payment in units, half deferred. Fisher (interests associated with the estate of the late Sir Woolf Fisher, headed by Sir Noel Robinson) took $56 million in cash, the rest in units.
The trust bought 50% of Highbrook Development Ltd from Goodman Group and Fisher (25% each), and 25% of HBPL Properties from Fisher.
Since 2012, the trust has announced 15 new projects at Highrook costing a total $158.7 million, adding over 80,000m² of rentable area to the estate and generating $60 million in valuation gains.
The business park has over 70 businesses occupying 340,000m² in over 40 buildings. Its present value is $850million, with $60 million more work in progress.
PFI gets 5% valuation lift
Property For Industry Ltd said yesterday independent annual valuations were expected to increase the value of its portfolio by 5% ($47 million) to $985 million, and it confirmed earnings & dividend guidance.
PFI began the year with a portfolio of 79 properties valued at $876 million. It acquired 6 properties for $58 million and will have disposed of one property with a carrying value of $9 million (unconditional at 31 December, settlement 31 March 2016). Capex & property-related prepayments added $13 million.
CBRE, Colliers International & Jones Lang LaSalle carried out the valuations, which remain subject to finalisation & audit. The company will release its full-year results on Monday 15 February.
Zara the next big name for Sylvia Park
Kiwi Property Group Ltd said on Monday international fashion giant Zara would open its first New Zealand store at Sylvia Park late next year.
In October, Kiwi said another international fashion retailer, H&M, would also open at Sylvia Park late next year.
Zara has over 2000 stores in 88 countries. H&M is one of 6 brands developed by H&M Hennes & Mauritz AB of Sweden, which has 3700 stores around the world.
Chief executive Chris Gudgeon said Kiwi Property would invest $11.5 million to accommodate Zara in a new ground-level store in the mid-mall area.
He said the company was evaluating a $150 million 20,000m² retail expansion of Sylvia Park and was considering a range of options, including adding further international retailers, more specialty retail stores, department stores & parking. It’s in the predevelopment phase, which includes design, consenting & pre-leasing. Mr Gudgeon said construction could start in 2017 for a possible 2018 completion.
The company is also investigating a potential office development at Sylvia Park, as part of its town centre vision for the site.
Fletcher Building scores the Rainbow tick
Fletcher Building Ltd said on Monday it had scored the Rainbow tick – certification demonstrating it’s a business that’s inclusive for people who are lesbian, gay, bisexual, transgender, takatapui or intersex.
Chief executive Mark Adamson said Fletcher was New Zealand’s first construction & building materials company to achieve the Rainbow tick.
Rainbow Tick’s Michael Stevens said: “We were surprised when Fletcher Building contacted us as we hadn’t thought to approach a construction company, which shows even at the Rainbow Tick we need to challenge our own stereotypes of what sort of organisations want to be inclusive.”
3 Eastgate lease agreements go unconditional
NPT Ltd said yesterday 3 lease agreements at the Eastgate Shopping Centre in Christchurch have gone unconditional.
They are:
- 900m² on the upper level to be occupied by Linwood Avenue Medical Centre in a new purpose-built integrated family health centre, in part of the space vacated by Farmers after the 2011 earthquake. The lease is for an initial term of 9 years from construction completion
- 1200m² in the balance of the area vacated by Farmers, to be occupied by a cluster of social services providers that will co-locate into new office space, including Aviva, Barnardo’s, Family Help Trust, Red Cross & He Waka Tapu. The lease is for an initial term of 6 years from construction completion
- A new standalone Restaurant Brands outlet at 283 Linwood Avenue, to be built on a site previously occupied by a house demolished this year. The lease is for an initial term of 12 years from construction completion.
NPT managing director Kerry Hitchcock said Hawkins Construction Ltd had been appointed for the works on the upper level. All 3 projects will start in January for completion in mid-2016.
NPT estimated the combined capex would be $7 million and would provide an annualised yield on cost of 9.25%. NPT will fund these developments from its existing bank facility.
Attribution: Company releases.
