Archive | Market

Updated: 8 commercial sales in Hastings & Napier

Published & updated 15 February 2019:
Bayleys agents have sold 6 properties in Hastings, including 3 in the central area, and another 2 in Napier (pictured above) & at Onekawa.

The information was revised this morning, with the sale of The Warehouse’s premises on Karamu Rd North in Hastings.

South of the Bombays

Hawke’s Bay

Hastings

326 Heretaunga St East, corner Hastings St North:
Features: 2725m² fitness centre, seismic assessment 96% of new building standard; national tenant City Fitness NZ Ltd is on 15-year lease with 2 6-year rights of renewal
Rent: $454,480/year net + gst
Outcome: sold to an Auckland syndicator for $6.5 million at a 6.99% yield
Agents: Mike Houlker, Sunil Bhana & Rollo Vavasour

322 Heretaunga St East:
Features: 950m² site in central retail location, 595m² modern standalone building; 8-year lease from February to national tenant Dollar King Ltd plus 24-year rights of renewal
Rent: $115,000/year net + gst
Outcome: sold for $1.625 million at a 7.08% yield
Agents: Rollo Vavasour, Mike Houlker & Sunil Bhana

1014 Heretaunga St West:
Features: 1880m² development site at Stortford Lodge, zoned commercial service allowing wide range of activities; various vacant buildings
Outcome: sold for $750,000 at $399/m²
Agents: Daniel Moffitt & Jake Smith

302 Jervois St:
Features: 2649m² site, 1690m² single-level industrial building
Outcome: sold for $600,000, new owner to undertake a comprehensive refurbishment of the building, including a new roof, before leasing
Agent: Rollo Vavasour

620 Karamu Rd North:
Features: 1.5389ha, 6400m² bulk retail building in the Park Mega Centre purpose-built for The Warehouse in 2012; 15-year lease until March 2027, annual CPI rental adjustments plus 5 3-year rights of renewal
Outcome: sold for $19.76 million at a 6.13% yield
Agents: Jim McKinlay & Mark Hourigan

303 Railway Rd:
Features: 1095m² fringe cbd site; NZ Police leases the rear of the site for secure parking, Hastings Taxis operates its communications centre from the front in a 100m² building
Rent: $37,157/year net + gst
Outcome: sold for $400,000 at a 9.29% yield
Agent: Jake Smith

Napier

100-106 Hastings St:
Features: 794m² cbd corner site, landmark 1038m² art deco building, seismic assessment 67% of new building standard; ASB Bank anchor tenant on 6-year lease from March 2017 plus 1 6-year right of renewal, Opossum World occupies balance of ground floor on 4-year lease from March 2017 plus 1 4-year right of renewal; 225m² first-floor office vacant
Rent: $183,850/year net + gst
Outcome: sold for $2.65 million at a 6.94% yield
Agent: Sam MacDonald

Onekawa

31 Cadbury Rd:
Features: 766m² leasehold site, 414m² workshop/warehouse, fully leased to 2 tenants
Rent: $40,800/year net + gst
Outcome: sold for $228,000 at a 17.9% yield
Agents: Jack Lee & Sam MacDonald

Attribution: Agency release.

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Eden Terrace apartment sells

An Eden Terrace apartment was sold at Bayleys’ auction on Wednesday, down $54,000 from the price paid in July 2015, according to Quotable Value Ltd records. I reported this unit’s sale at auction in May 2015 for $326,000, and its sale again in an August 2015 report at $449,000.

I haven’t confirmed the earlier sales records today.

Isthmus west

Eden Terrace

Der Rohe, 10 Flower St, unit 107:
Features: 55m², 2 bedrooms, balcony, secure parking space
Outgoings: rates $1360/year including gst
Outcome: sold for $395,000
Agents: Lucy Piatov & Chris Bell

Attribution: Auction, sales records.

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1 of 4 apartments sells in light bidding

Light bidding saw just one of the 4 apartments sold at Ray White City Apartments’ auction today, a unit in Siena Terrace in Grey Lynn (pictured).

CBD

Learning Quarter

The Quadrant, 10 Waterloo Quadrant, unit 1412:
Features: 32m², fully furnished studio
Outgoings: rates $1350/year including gst; body corp levy $4002/year including gst for the year ending 28 February
Income assessment: $400/week
Outcome: passed in at $301,000
Agent: Damian Piggin

Victoria Quarter

Altitude, 34 Kingston St, unit 3K:
Features: 27m², fully furnished 1 bedroom
Outgoings: rates $994/year including gst; body corp levy $3044/year including gst
Income assessment: $430/week
Outcome: passed in at $206,500
Agent: Dusan Valenta

Isthmus west

Grey Lynn

Siena Terrace, 6 Burgoyne St, unit 2F:
Features: over 50m², fully furnished 1 bedroom, tandem basement parking
Outgoings: rates $1321/year including gst; body corp levy $3852/year including gst
Outcome: sold for $475,000
Agent: Keisha Gutierrez

Mt Eden

Eden Green, 43 Edwin St, unit 424:
Features: 67m², 1 bedroom + flexi-room, 8m² balcony, storage unit, secure parking space
Outgoings: body corp levy about $4000/year including gst
Outcome: passed in after bid at $850,000, vendor bid at $880,000
Agent: Casey Chen

Attribution: Auction.

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Updated: Units in 2 leaky buildings sell, off-plans vendor gets no bids

Published 13 February 2019, updated 14 February 2019:
An apartment in a downtown block where remediation is expected to start this year (City Gardens, pictured above) was sold at City Sales’ auction on Wednesday, but a unit in another block with remediation pending was passed in after 2 bids. It also sold, post-auction. In both buildings the remediation work is expected to cost about $30 million.

The owner of an off-the-plans unit in Conrad Properties Ltd’s Union & Co, at the top of central Auckland’s Victoria Quarter, couldn’t attract a bid as settlement looms a few weeks away.

CBD

Albert St

City Gardens, 76 Albert St, unit 13A:
Features: 59m², 2 bedrooms; cost to fix this unit put at $163,000, $99,000 paid by vendor, balance up to buyer; cost to remediate whole building estimated at $29 million including gst, work to start this year
Outgoings: rates $1149/year including gst; body corp levy $3843/year including gst
Outcome: sold for $282,000
Agents: Tony Kelly & Grant Elliott

Victoria Quarter

Updated: Imperial Gardens, 135 Hobson St, unit 801:
Features: 63m², 3 bedrooms, 2 bathrooms, deck, parking space; cost to fix this unit put at $200,000; unusually for a remediation, these owners are proceeding with the work first, estimated cost $34 million, suing later
Outgoings: rates $1304/year including gst; body corp levy $6187/year including gst
Outcome: passed in at $175,000, sold post-auction for an undisclosed price
Agent: Maryanne Wong

Union & Co, 15 Union St, unit 2:
Features: 30m² studio, courtyard level; construction scaffolding is coming down, settlement for off-plans buyers about a month away, no titles issued yet, and no rates or body corporate levies set
Income assessment: $320-340/week
Outcome: sole bid on behalf of the vendor at $300,000
Agent: Dahui Chen

Attribution: Auction.

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Residential value changes look localised

Value change in residential markets looked localised in Quotable Value Ltd’s latest index, out today.

Auckland values look close to a standstill overall, but with those local variations – turning upward in the last 3 months in the country’s most expensive neighbourhood, the eastern suburbs on Auckland’s isthmus; still negative on the North Shore; still perking up in Rodney & the Hibiscus Coast; slightly weaker in the west; a mix in southern suburbs.

Senior QV consultant Paul McCorry said affordability constraints & low supply continued to keep value growth modest in most areas.

While loosening the loan:value ratio (LVR) restrictions would enable some buyers to enter the market, confirmed & anticipated policy changes dampened investor enthusiasm in the short term. He expected investors to hold back until key policy changes such as capital gains tax are debated.

QV expected the foreign buyer ban to have greatest impact in premium areas like Queenstown, but it had solid quarterly growth of 3%. However, Mr McCorry said Auckland may have been affected, with values flat.

As has been the case since values started to turn downward in Auckland 2 years ago, other parts of the country have experienced comparatively large value gains.

Kaipara has been relatively strong, with value gains of 2.5% over the last quarter & 9.9% over a year, but the big surge has been in Hawke’s Bay – 10.8% in Hastings in the last 3 months, 11.2% over 12 months there & 11.3% in Napier.

The QV view of the next few months: “The underlying drivers for the New Zealand economy remain positive. We have a strong labour market, there are still plenty of new people coming to live in New Zealand and interest rates remain close to historic lows. With the Reserve Bank anticipated to keep the OCR at 1.75% for the foreseeable future, we’re seeing banks offering very favourable lending rates provided buyers meet the set criteria. We’re expecting 2019 to be a year where value growth is not at the levels of the last few years but, equally, any value decreases are likely to be modest as demand still outstrips supply.”

Below, the dollar figure is the average value for January. The first percentage gain or fall is for the 3 months to January, the second is for the last 12 months (QV switches those around in its tables) and the third is the change since the 2007 peak. For Auckland, QV still works on the old council boundaries (councils marked in bold); Kaipara & the Hauraki Gulf Islands, as usual, have low counts:

Total NZ: $684,468, 0.9%, 2.9%, 65.5%
Auckland region: $1,045,775, -0.1%, -0.9%, 92.0%
Rodney: $960,040, 2.1%, 1.3%, 63.7%
North: $987,135, 2.5%, 1.9%, 64.3%
Hibiscus Coast: $933,000, 1.5%, 0.5%, 58.8%
North Shore: $1,202,443, -1.1%, -2.2%, 86.3%
Coastal: $1,362,966, -1.9%, -3.4%, 80.9%
Onewa: $968,251, -0.9%, -0.9%, 95.2%
North Harbour: $1,191,045, 0.7%, -0.7%, 96.0%
Waitakere: $819,303, -1.1%, -0.4%, 93.2%
Auckland City: $1,234,033, 0.2%, -0.9%, 98.2%
Central: $1,082,344, 0.3%, 0.4%, 90.0%
East: $1,557,718, 0.5%, -1.2%, 95.5%
South: $1,092,400, -0.2%, -1.1%, 102.9%
Islands: $1,166,754, 2.5%, 0.0%, 82.5%
Manukau: $903,213, 0.1%, -0.1%, 97.3%
East: $1,147,319, -0.8%, -1.2%, 92.5%
Central: $705,752, 0.4%, 0.4%, 87.7%
North-west: $785,644, 1.1%, 1.2%, 112.6%
Papakura:  $696,144,-0.7%, -0.6%, 93.5%
Franklin: $670,613, 0.0%, -0.4%, 69.5%

On the borders & down country:
Whangarei: $561,271, 1.5%, 10.1%, 41.6%
Kaipara: $557,155, 2.4%, 9.9%, 40.4%
Waikato: $489,613, 0.6%, 4.1%, 61.7%
Hamilton: $577,352, 0.3%, 5.9%, 59.7%
Tauranga: $721,981, 2.0%, 3.3%, 50.0%
Gisborne: $323,676, 0.6%, 9.2%, 8.9%
Hastings: $504,553, 10.8%, 11.2%, 61.9%
Napier: $538,635, 4.3%, 11.3%, 58.3%
Wellington region: $693,448, 1.1%, 7.9%, 52.2%
Christchurch: $497,370, 0.8%, 0.6%, 31.1%
Queenstown-Lakes: $1,201,645, 3.0%, 7.6%, 74.7%
Dunedin: $436,208, 2.9%, 11.1%, 52.4%
Invercargill: $286,253, 2.0%, 12.2%, 29.8%

Link: Full QV index tables

Attribution: QV tables & release.

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World property: Introduction; inclusive capitalism; room sharing; affordable Australia; blanket view; Brexit waves; Russia expands

An introduction to a different look at world property, politics, economics & finance

Introduction
Fund manager writes about inclusive capitalism
Will room sharing become more common?
Research on delivering affordable housing
Hotspotter on how many in media get Australian residential wrong
What’s Brexit got to do with us? The waves are spreading
Russia expands influence in all directions

Introduction

This introduction to World property on Wednesdays is about a revised version of my coverage of world property (which had lapsed), economics (highly important to gauge our place in a rapidly changing international scene), politics & finance (where the money’s moving).

2 of today’s items are about events in faraway places with potential consequences for New Zealand. Both happen to be from Asia Times columns, but you can expect a wider spread of sources.

You can read thousands of lines every day about US President Donald Trump, but I’ve found very few of those articles read between the lines.

You can also read thousands of lines every day about what China is doing, what the US wants to do to it. After the shouting, I want you to be able to read, here, what seems to be happening that will bring change internationally, and potentially to New Zealand.

Aside from those major economic earthquake lines, large players in property are creating new plays and entering new markets. Their actions may give you ideas on economic activity, financial positioning & investment directions that aren’t just “over there” but also frequently relate to “down here”.

My previous World property items didn’t attract the audience I thought they deserved, perhaps from presentation rather than content.

The new version will contain a wider mix of items, plus links to stories that I think pierce the fog and will help you understand changes in influence likely to impact on New Zealand in some way.

In property, I think it’s worth understanding some of the new kinds of transaction being carried out in various parts of the world – for example, residential portfolios in Europe, reits (real estate investment trusts) of different sizes frequently offering opportunity in one country to investors in another, the investment moves of Singaporean, Chinese, US & European entities in other economies, the Chinese role in Australian development.

At the moment, the Trump challenges to world order as it was are bringing realignment going far beyond his narrow trade aspiration (‘Play fair, all you other people!’) & aspiration for the US to retain global control. It’s important, from the New Zealand perspective, to see relationship challenges such as 5 Eyes versus Huawei – very hard to sit on both sides of the fence.

Health warning:

These items are in a form that you can flick through quickly. But they also have numerous links to sources, including original research, so you can spend time digesting the content.

In today’s first batch of items:

Fund manager writes about inclusive capitalism

Nigel Wilson, who heads giant international funds manager Legal & General Group Plc, wrote in Forbes magazine last July: “Never has there been so much global capital. Never has money been so cheap and yet so poorly used. Some $US8 trillion is earning 0% or less, alongside massive infrastructure underspend & no growth in real wages: a poor societal outcome.

“Since the global financial crisis, our capitalist system has created extraordinary, but exclusive, wealth & its flip side: cynicism & resentment.  The ‘financialisation’ of business has driven underinvestment, widening the disconnect between Wall St & Main St and giving impetus to the dismal economic doctrine of ‘secular stagnation’…

“This article is going to take a close look at the idea of inclusive capitalism – what it is, how it can be defined, some positive signs of its emergence and will provide actual examples of it, hard at work.”

Dr Wilson is group chief executive of Legal & General, which manages $US1.4 trillion of investments. In 2015-16 he was a member of then-UK prime minister David Cameron’s business advisory group, about which he wrote: “The experience helped inform my thinking on how capitalism can broadly benefit society. The approach advocates for using capital to engender conditions in which people can create their own success. This is essential if we are to create a fairer society that empowers people and enables all boats to rise.”

In a separate piece on the company’s blog in November, Legal & General advanced Dr Wilson’s July argument in Forbes, looking inside the tertiary education system and finding a flaw to be fixed: “Innovation & new businesses go hand in hand, so why do universities in the UK & US struggle to build on students’ ideas? By installing an inclusive capitalism mindset we can boost the economy, nurture talent & build communities.

Links:
Nigel Wilson in Forbes, 29 July 2018, Inclusive capitalism: Oxymoron or the perfect balance?
Legal & General blog, 29 November 2018: University challenging: how inclusive capitalism breeds innovation
30 April 2018: Legal & General launches affordable housing arm (GB)
Legal & General

Will room sharing become more common?

2 Sydney academics, Zahra Nasreen & Kristian Ruming, wrote in a guest post in Property Observer in January: “The proportion of households experiencing rental stress is on the rise across Australia’s major cities. High rental prices have been driving an increase in shared housing. The most extreme form of this is ‘shared room’ housing – where residents share a bedroom or partitioned living space (such as lounge room or garage) with a number of unrelated adults.”

Their full research paper can be reached via Taylor & Francis Online. Taylor & Francis is an academic & professional publisher, and a subsidiary of Informa UK Ltd. The group parent, Informa plc, is a business intelligence, academic publishing, knowledge & events group.

Links:
Property Observer
Property Observer, 18 January 2019: Tracking the rise of room sharing & overcrowding, and what it means for housing in Australia
T&FOnline, 24 December 2018: Room sharing in Sydney: A complex mix of affordability, overcrowding & profit maximisation
Taylor & Francis
Informa

Research on delivering affordable housing

3 other Australian researchers focused on Melbourne in their paper, also available in T&FOnline, on whether the marketplace as it is can deliver quality affordable housing. The paper is by Melbourne University academics Andrew Martel, Carolyn Whitzman & Alexander Sheko.

They wrote in their abstract: “Australian government housing policy relies on the private housing industry contributing to the supply of affordable & social housing in cities. However, the diminishing availability of suitable housing for many households raises the question of whether the private housing industry is interested in, or capable of, catering for this market segment. Engagement would require both inducements & regulation, partnerships with government & non-profit actors, and an alignment of attitudes regarding the need & responsibility for providing dwellings in housing submarkets. This paper explores perceptions & strategies of actors regarding the role for the industry in the context of Melbourne.”

Link:
T&FOnline, 24 January 2019: Private developers & the public good: Can a socially constructed market deliver quality affordable housing for Australian cities

Hotspotter on how many in media get Australian residential wrong

Terry Ryder, founder of hotspotting.com.auand an astute observer, wrote a column 18 months ago about Australian property markets that’s just as relevant today: “Much of what appears in mainstream media about residential real estate discusses Australia as a single market. That’s an early clue for consumers that the commentator has shallow knowledge.”

Links:
Property Observer, 24 July 2017: As Sydney fades, Perth shows early signs of recovery: Hotspotting’s Terry Ryder
Hotspotting

What’s Brexit got to do with us? The waves are spreading

UK researcher Hannah Timmis wrote in Asia Times on Monday: “As the UK heads towards a possible ‘no deal’ Brexit, the uncertainty surrounding the terms of the UK’s imminent departure from the European Union is making waves as far away as South-east Asia.”

Ms Timmis wrote in her work blog at the Centre for Global Development: “New research shows trade-reliant poor Asian nations will be especially hard hit if the UK & EU can’t come to terms on their separation.

“A no-deal Brexit would deprive some developing countries of tariff-free access to the UK market. Under the worst-case scenario, developing countries could suffer a $1.6 billion or 5% decline in their UK exports, with least developed countries among the worst affected. To minimise the damage, the UK government must prioritise legislation that would maintain preferential market access for developing countries.”

Ms Timmis is a research assistant at the Centre for Global Development, supporting Mikaela Gavas’ work on development finance & European development policy. Her previous work includes being a project manager in the Middle East & North Africa, overseeing the delivery of aid programmes. She holds an MSc in development management from the London School of Economics and a BA in philosophy, politics & economics from Oxford University.

Links:
Asia Times, 11 February 2019: No-deal Brexit could sink much of Asia
Centre for Global Development, 25 January 2019: Why a no-deal Brexit would be bad for developing countries
German Development Institute briefing paper, February 2019: How Brexit affects least developed countries

Russia expands influence in all directions

In the second Asia Times piece, Alexander Kruglov examines Russia’s changing world roles under President Vladimir Putin: “Russia is going head-to-head with the West as it pursues Eurasian integration and expands its footprint globally.”

Link:
Asia Times, 11 February 2019: Gas, guns and pragmatism: Putin’s foreign policy

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15 commercial sales & 1 lease

Colliers agents have completed 15 commercial property sales & one lease agreement in Auckland & down through the Coromandel, Bay of Plenty, Waikato & Manawatu.

Sales

Isthmus east

Onehunga

191 Onehunga Mall:
Features: 512m² site, 2-storey, 1018m² open floorplate, ex-BNZ building, retail ground floor, 13 parking spaces
Outcome: sold for $3.42 million at a 4.67% yield on passing income
Agents: Gawan Bakshi, Ned Gow & Adam White

Remuera

126A Remuera Rd:
Features: 354m² medical investment 
Outcome: sold for $3.2 million at a 4.97% yield
Agents: Hamish Paterson, David Burley & Simon Child

Isthmus west

Morningside

9 Gordon Rd:
Features: 1815m² site, 1542.5m² floor area, tenant on new 4-year lease
Rent: $258,000/year net + gst
Outcome: sold for $4.84 million at a 5.33% yield
Agents: Jonathan Lynch, Dhiru Patel & Shoneet Chand

North-east

Rosedale

9A Parkhead Place:
Features: 675m² industrial property on strata title
Outcome: sold for $2.26 million at a 5.34% yield
Agents: Matt Prentice & Ryan de Zwart

North-west

Hobsonville

3 Rawiri Place:
Features: 5003m² site, 2739.5m² warehouse & office in the newly completed industrial property in the Workspace development, full drive-around truck access, 32 parking spaces
Outcome: sold for $10.15 million at a 4.92% yield
Agents: Craig Smith, Matt Prentice & Gareth Fraser

South

East Tamaki

60 Allens Rd:
Features: 5702m² industrial property, 20% site coverage, Fyfe Kitchens Ltd’s head office & manufacturing base
Outcome: sold for $4.75 million at a 2.3% yield
Agents: Paul Higgins & Josh Franklin

417 East Tamaki Rd, unit D5:
Features: 92m² of office split over 2 levels, 297m² warehouse
Outcome: sold for $1.29 million at a 5.3% yield
Agents: Josh Franklin, Greg Watson & Jolyon Thomson

Papakura

64 Boundary Rd:
Features: 8858m² multi-tenanted office & warehouse, one newly built building, another recently refurbished, total floor area 2416m²
Outcome: sold for $6.55 million at a 6.5% yield
Agents: Josh Franklin & Jolyon Thomson

South of the Bombays

Bay of Plenty

Katikati

13 Talisman Drive, units 1 & 2:
Features: 412m² lettable area, standalone unit-titled office building, fully leased to a law firm & an accountancy office
Outcome: sold for $1.23 million at a 7.1% yield
Agents: Simon Clark & Grant White

Tauranga

140 Second Avenue:
Features: 1012m² site, about 1000m² of workshop & office
Outcome: sold with vacant possession for $2.1 million
Agents: Grant White, Simon Clark & Richard Davidson

Coromandel

Hahei

94 Hahei Beach Rd:
Features: 22.5ha landholding zoned for residential & lifestyle subdivision 
Outcome: sold for $2.9 million
Agent: Roger Seavill

Manawatu

Longburn

166 Works Rd:
Features: 2.48ha site, 5070m² industrial facility – warehouse 3125m²
Outcome: sold for $1.2 million at a 15.5% gross yield
Agent: Janine Hodgson

Palmerston North

158 Fitzherbert Avenue & 364-366 College St:
Features: 1618m² corner site, 2-level commercial building will be removed & replaced with a 3-tenancy building & a single-storey dwelling
Outcome: sold for $1.111 million at a 5.66% yield
Agents: Grant Lloyd, Phil Nevill & Doug Russell

Palmerston North – Roslyn

931 Tremaine Avenue:
Features: 8243m² site, 4354m² multi-tenanted retail & industrial complex
Outcome: sold for $4.45 million at a 7.61% yield
Agents: Phil Nevill, Doug Russell & Grant Lloyd

Waikato

Hamilton

903-919 Victoria St:
Features: 1443m² site, 2-level retail & office building, 2 parking levels
Outcome: sold for $4.9 million
Agents: David Palmer & Justin Oliver

Lease

Isthmus west

Kingsland

6 & 8-10 Aitken Terrace:
Features: 732m² high stud warehouse, drive-through capability
Rent: leased to industrial maintenance & engineering firm on 5-year term at $220,000/year net + gst
Agent: Jonathan Lynch

Attribution: Agency release.

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14 sales & 7 leases for Shore agents

Published & updated 10 February 2019:
Bayleys’ North Shore commercial agents have reported 12 sales – make that 14 after the update – & 7 leases, some dating back a few months. 3 of the sales & 5 of the leases were signed in January.

The update adds sales on Hinemoa St, Birkenhead, and Titan Place, Silverdale.

Sales

North-east

Albany

80 Don McKinnon Drive:
Features: 15,969m² site 
Outcome: sold in January for $19.25 million + gst at $1205/m²
Agent: Eddie Zhong

Birkenhead

188-192 Hinemoa St:
Features: 835m² elevated site zoned town centre (18m height limit), 380m² villa converted to restaurant use on the upper level plus office/accommodation area below
Outcome: sold vacant for $2.12 million 
Agents: Tony Chaudhary, Amy Weng & Michael Nees

Northcote

46 Lake Rd:
Features: 1014m² mixed-use property, buildings 790m² – office 665m², accommodation 125m², 11 parking spaces
Rent: $97,072/year net + gst
Outcome: sold in October for $3.15 million + gst at a 3.1% yield, land price $3106/m²
Agents: Terry Kim & Stephen Scott

Rosedale

59 Arrenway Drive:
Features: 2951m² site 
Outcome: sold in December for $2.1 million + gst at $711/m²
Agents: Matt Mimmack & Laurie Burt 

5 Ceres Court, unit 2G:
Features: 155m² office unit occupied by Legend Financial Services Ltd
Rent: $45,000/year net + gst
Outcome: sold in January for $734,500 + gst at a 6.13% yield
Agent: Tonia Robertson

5-7 Omega St:
Features: 1952.48m² office, 87 parking spaces
Rent: $490,155.27/year net + gst
Outcome: sold in November for $7.8 million at a 6.28% yield
Agents: Brian Caldwell (Bayleys) & Derek Wallwork (Omega Commercial)

19 Omega St, lot 3:
Features: 888m² industrial site, 355m² floor area, 15 parking spaces
Outcome: sold in December for $1.7 million + gst
Agents: Matt Mimmack & Laurie Burt

7-9 Tait Place, unit A5:
Features: 119m² industrial unit – warehouse 94m², office 25m², 2 parking spaces
Outcome: sold vacant in January for $495,000 + gst
Agents: Laurie Burt & Nicky Joyce

38 William Pickering Drive, unit G:
Features: 232m² warehouse unit, 4 parking spaces
Outcome: sold vacant in September for $967,000 + gst
Agents: Tonia Robertson & Jane McKee

Silverdale

4 Titan Place, unit E
Features: 203m² road-facing light industrial corner unit, includes mezzanine floor, 2 parking spaces
Outcome: sold vacant for $540,000
Agent: Mustan Bagasra

Takapuna

10 Auburn St, unit A:
Features: 40.48m² retail unit
Outcome: unconditional sale signed in August 2016 for settlement this year at $430,000 + gst at $10,622.53/m², vacant possession
Agents: Eddie Zhong & Damian Stephen

10 Auburn St, unit B:
Features: 39.17m² retail unit
Outcome: unconditional sale signed in August 2016 for settlement this year at $420,000 + gst at $10,722.49/m², vacant possession
Agents: Eddie Zhong & Damian Stephen

Sentinel, 3-9 Northcroft St, retail units R3, R7 & R8:
Features: 180m², shared parking
Rent: $48,400/year net + gst
Outcome: sold in December for $900,000 + gst at $5000/m², 5.38% yield
Agents: Adam Curtis, Adam Watton & Damian Stephen

19 & 21 Taharoto Rd:
Features: 1126m² mixed-use site, 106m² office
Outcome: sold vacant in December for $3.95 million + gst, land price $3508/m²
Agents: Eddie Zhong (Bayleys) & Bruce Jiao (Barfoot & Thompson)

Leases

Birkenhead

65 Birkenhead Avenue:
Features: 30m² retail unit, 1 parking space included 
Rent: leased in January for $12,000/year gross + gst
Agent: Dev Choudhury

Northcross

948 East Coast Rd:
Features: 525m² medical rooms & office, 32 parking spaces
Rent: leased in December for $230,000/year net + gst
Agent: John Algie

Rosedale

339 Albany Highway:
Features: 2840m² site
Rent: leased in June 2018 for $148,564/year net + gst, premises rental $52.31/m²
Agent: Ranjan Unka

11 Douglas Alexander Parade, unit B:
Features: 565.7m² industrial unit – warehouse 319m², office 232m², other area 14.7m², 10 parking spaces
Rent: leased in January for $98,000/year net + gst
Agents: Alex Strever & Laurie Burt

Silverdale

28 Anvil Rd, unit 1:
Features: 246m² industrial unit, 5 parking spaces 
Rent: leased in January for $36,000/year net + gst, putting a 4.8% yield on the $750,000 purchase price at auction in December
Agents: Rosemary Wakeman & Matt Mimmack

Wairau Valley

89 Ellice Rd, unit 5D:
Features: 125m² industrial unit, 2 parking spaces 
Rent: leased in January for $32,000/year net + gst
Agents: Adam Watton & Adam Curtis (Bayleys) & David Cannon (Barfoot & Thompson)

89 Ellice Rd, unit 7A:
Features: 250m² industrial unit, 4 parking spaces 
Rent: leased in January for $50,000/year net + gst, parking at $25/space/week
Agents: Adam Watton & Adam Curtis

Attribution: Agency release.

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Orakei Pt apartment building shift knocked back in 11-10 council vote

The developer of the Orakei Point apartment & mixed use precinct beside the Orakei railway station has been turned down – sort of – in an 11-10 council committee vote over a proposed 15.75m shift in position of the Peninsula apartment building.

The “sort of” above arises because the majority vote was against accepting the private plan change application for notification. Without a follow-up recommendation, the proposal was left in abeyance, and there was no subsequent proposal to adopt the plan change request (which would require the council to take it forward), or to reject it, or to deal with it as if it was a resource consent application.

Instead, committee chair Chris Darby resolved that the committee should defer a decision on the application to its next meeting.

Orakei Point Trustee Ltd (headed by Kerry Knight) has 5.9ha of partially redeveloped land on the Hobson Bay side of the small peninsula between Hobson Bay & the Orakei Basin, and in earlier development proposals it was this company’s & previous developer Tony Gapes’ intention to take development over the railway tracks, incorporating a station in the new structure, but neither Auckland Transport nor KiwiRail wanted that, citing maintenance as their major obstacle.

The development masterplan has been put in place with the section of it over the tracks eliminated, although it could be revived. KiwiRail was also keen to get a 5m gap between the tracks & development, but was turned down on that score when the masterplan was signed off.

Orakei Point Trustee Ltd’s new proposal is to rezone 413m² from open space–informal recreation to business–mixed use, enabling the 32-apartment Peninsula building to be moved 15.75m westward. The building would have up to 9 floors as stage 1 of a larger development.

But members of Auckland Council’s planning committee focused on encroachment by the repositioned building on open space – which is privately owned – around the edge of the Orakei Point peninsula.

The outcome of the 11-10 committee vote was not to reject the application for a private plan change enabling the repositioning, but not to accept it.

Aftera half-hour lunch break, committee chair Chris Darby opted to defer a decision until the committee’s next meeting instead of pursuing his immediate post-vote intention to move the plan change be rejected.

The open space belt around the peninsula’s edge was set aside to provide public access to the Hobson Bay walkway & cycleway, and to landscape the edge. However, principal planner Bruce Young said in his report to the committee the council’s parks & recreation policy staff no longer supported acquiring that land for access to the walkway, preferring a route along Orakei & Ngapipi Rds.

Council central south planning manager Celia Davison said the new area for the building was privately owned open space: “They want to move the zoning because they believe it would give a better outcome. Our open space team are not interested in that piece of land… The designation is quite a long way from rail. They want to move the building to give better distance between rail & their building.”

On the basis of the building occupying that open space, the Orakei Local Board opposed the change. The board’s former chair, Desley Simpson, in her second term as Orakei ward councillor, was concerned that the development could detrimentally affect rail in future, and told staff a lot of information was missing from their report.

Cllr Wayne Walker raised his regular concern about climate change impacts, although principal planner Mr Young said the new site was “not significantly lower” than the previous one. Cllr Walker, like Cllr Simpson, said he had “real concerns about the futureproofing of our transport network”.

Cllr Mike Lee commented: “The unitary plan & the masterplan, I was under the impression settled the controversy and a sound planning decision was made to protect that coastal edge, and that was part of the delay. Now after all that expense the owner has decided they want to encroach on that public open space [as above, it’s not public]. Obviously the owner wasn’t required to make a reserve contribution. Can we have some background into the idea of this requirement that the edge be open space?”

Ms Davison said she’d find out.

There was a lot more debate on both this plan change & one for Warkworth North around the politicians’ role. I’ll return to that in a further story.

Earlier story:
1 September 2018: Equinox wins consent for Peninsula at Orakei Bay Village

Attribution: Council committee meeting & agenda.

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Commercial Realty signs 4 industrial sales & 6 leases

Commercial Realty Ltd agents have completed 4 $50,000-plus industrial property sales & 6 leases in the 3 months November-January. The agency specialises in industrial & commercial property in the east of Auckland’s isthmus & southern suburbs. I haven’t gone back to determine further property details in each transaction.

Sales

Isthmus east

Mt Wellington

1066 Great South Rd, unit 5:
Features: 186m²
Outcome: sold to a local owner-occupier for $685,000 – “transaction completed within a week, showing the strength of the Mt Wellington market”
Agent: Willie Fernandes

South

East Tamaki

12-16 Harris Rd:
Features: 2195m²
Rent: holding income of $267,000/year until September
Outcome: sold to an owner-occupier for $5.882 million
Agents: Mark Bramwell & Tom Cooper

24E Sir William Avenue:
Features: 360m², office & warehouse unit
Outcome: sold to an owner-occupier for $1.3 million
Agent: David Turner

Wiri

18 Aerovista Place:
Features: 1600m²
Outcome: sold to an investor for an undisclosed price on behalf of clients by Viranda Holdings Ltd, but reflecting a 5.7% return
Agent: Kerry McGuffog

Leases

Isthmus east

Onehunga

88 Princes St:
Features: 208m²
Outcome: sold to a nearby owner-occupier for $775,000 after a multiple offer campaign
Agent: Danny Guise

Penrose

345 Church St:
Features: 810m²
Rent: leased to a local tenant for $126,500/year after a multiple offer campaign
Agent: Danny Guise

525 Great South Rd, unit D:
Features: 535m²
Rent: leased for $109,740/year to an international client which is upsizing its New Zealand operation
Agents: Tom Cooper & Danny Guise

108-136 Hugo Johnston Drive:
Features: 3669m²
Rent: leased for $136,000/year to a client looking to expand
Agent: Willie Fernandes

South

Mangere

180 Montgomerie Rd, unit 9:
Features: 412m²
Rent: leased to an Airport Oaks tenant for $80,000/year
Agent: Tom Cooper

Papakura

40-52 Hunua Rd:
Features: 4000m²
Rent: leased to a national tenant on a long-term lease for $409,400/year
Agents: Mark Bramwell & Willie Fernandes

Attribution: Agency release.

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