Sea rise fears prompt push for relocatable new buildings

Flurry of commercial sales in Wellington

Chris Hutching

The Property Council’s Otago chapter says Dune-din City Council’s Second Generation district plan (2GP) requires new buildings in hazard areas to be relocatable. Dunedin appears to be the latest city to attempt to introduce new flood hazard rules based on various reports.

Christchurch City and Kapiti have both been forced to backtrack on prescriptive rules they based on engineering reports, which have been criticised as alarmist and worst case scenarios.

“In a coastal hazard overlay zone, new build-ings to be used for sensitive activities must be re-locatable, except buildings such as garages that do not have people regularly present,” the plan states. Property Council Otago spokesman Stephen Cairns says the rules, in combination with other chapters, would capture new housing, hotels and service sta-tions to be designed and built as relocatable.

He says the plan lacks rigorous analysis and must be revisited.

“How can developers possibly build develop-ments now that are supposed to be relocated if there is a sea rise? Where are we going to go and how are we going to do it? Who is going to pay for it?

“The plan offers no other explanation or solu-tion other than just stating that these buildings must be relocatable, making it economically unrealistic to build them. The council provides no guidance whatsoever.”

The Property Council says the 2GP must also simplify and relax overly-prescriptive zoning rules and combine commercial, mixed-use and industrial

together. The council says the plan has too many small and fragmented zones for industrial, commer-cial and mixed use purposes that are often isolated and don’t work.

The Property Council believes streamlining the number of commercial and mixed use zones and other changes will create greater opportunities for development and investment.

“In their current form, we struggle to see how the zoning restrictions will deliver sufficient and affordable land supply or encourage more people, businesses or capital into Dunedin.”

The city is experiencing a commercial property transformation due to greater demand for prime of-fice and industrial property. Dunedin City must en-sure the plan provides the right investment signals to aid this.

“This means having clear and realistic expecta-tions about heritage protection and what can and should be protected and whether building owners can afford this.

“Until now, characterising a heritage property has been based on either just aesthetics or when it was built without looking at its risk profile or eco-nomic implications. This approach does nothing to mitigate costs or even preserve truly valued historic buildings.

“Dunedin cannot continue with the status quo. The council must review the 2GP to come up with enabling and flexible policies that are bold and in-novative and attract people and businesses to Dune-din.”

The Otago chapter estimates commercial prop-erty in Dunedin has a value of nearly $20 billion.

NBR NZ PROPERTY INVESTOR IS A PUBLICATION OF THE NATIONAL BUSINESS REVIEW

Chris Hutching

Wellington’s commercial market has seen a flurry of end of year activity.

Datacom Hse on Jervois Quay has sold for $47 million to local investors Andrew Cotterell, Peter Dowell, Murray Harden and Charlie Zheng of Cornerstone Investments.

The vendor was AMP Capital Wholesale Office Fund and the deal was brokered by Bill Leckie.

He was also involved in nego-tiating two deals for Cornerstone last year – Craigs Investment Hse for $15.8 million, and the Kirk-caldie & Stains’ Harbour City Cen-tre, in Lambton Quay, for $45.85 million. Meanwhile, John Persico of JLL has brokered the sale of a large industrial site at 120 Hutt Park Rd, Seaview, to its former owner, Building Solutions.

A syndicate of investors managed by Anaro Investments purchased the 120 Hutt Park Road site from Building Solutions in 2001 for $7.3 million.

Building Solutions has now repurchased the Hutt Park Road property for $8.5 million.

The company also owns an adjacent block of land, which may be redeveloped.

The Building Solutions site over 2.2ha comprises a large purposebuilt warehouse and office development constructed in 2001.

Turners occupies the prop-erty with a lease that provides a stepped annual rental income, currently at $719,563.

Mr Persico says Seaview and Gracefield were historically char-acterised by government stores, wool stores and heavy engineer-ing work shops.

New design build activity with new occupiers has changed its

NOVEMBER 30 2015

Sally Lindsay

The outlook for New Zealand’s building and infrastructure in-dustry is defined by a tale of two very different cities; the pow-erhouse that is Auckland, and Christchurch, a city facing re-build fatigue five years on.

Auckland’s optimism has risen, while the Christchurch market shows a steady decline

in workload expectations, AE-COM’s six-monthly nationwide construction market sentiment survey shows.

The survey highlights a sub-stantial softening in the Christ-church infrastructure sector, down 10 percentage points to 29% of respondents expecting to see an increase in workload.

The continued decline in optimism, down nearly 30 per-

centage points in a year, reflects recognition that much of the rebuild infrastructure activity is complete and the programme of work is now changing gear.

Expectations in the Christ-church buildings market have also moderated; 58% of respon-dents expect growth, down from 80% in May.

This is because of the Transi-tion Recovery Plan. This means a

Building and infrastructure – Auckland’s optimism up, Canterbury’s down

To page 2

NBR NZ Property Investor

NBR NZ Property Investor 2

Taupo Motorsport becomes Bruce McLaren Motorsport ParkChris Hutching

Taupo Motorsport Park will now be known as Bruce McLaren Motorsport Park.

The rebranding comes following refinancing from NBR Rich Lister Richard Izard.

Executive director Tony Walker says TMP, the company which owns and operates the motorsport park, negotiated with Patricia and Amanda McLaren, widow and daughter of the late Bruce McLaren.

The business plan for the park has also pro-gressed with unit titling of property surrounding the track and conclusion of a couple of sales.

Mr Walker says his team also required agree-ment of McLaren Technology Group in the UK where about 3000 people are employed.

McLaren Technology Group includes McLaren Racing and the high-performance sports car business, McLaren Automotive.

The New Zealand race-car designer, driver and engineer was a winner of four World Cham-pionship Formula 1 Grands Prix. He also won the 24 Hours of Le Mans in 1966 alongside fel-

low Kiwi and now Taupo resident Chris Amon and the Can-Am Challenge Cup.

He was also the first driver to win the Tasman Cup in 1964 against the likes of the late Sir Jack Brabham, the late Graham Hill, and his long-time NZ team mate, the late Denny Hulme.

Mr McLaren died at Goodwood Circuit in England in June 1970 while testing one of his cars.

The team at Bruce McLaren Motor Racing, which he founded in 1963, went on to become one of the most successful teams in Formula 1 history winning 20 world championships and more than 180 races.

Daughter Amanda McLaren who lives in Surrey, England provided a written statement saying the naming of the park is a tribute and the motorsport recognition in her father’s home country has been a long time coming.

TMP chairman Mr Izard says the McLaren name is now one of the world’s leading brands – bigger than the All Blacks or America’s Cup.

The motorsport park’s future was assured following a financial and management re-struc-

ture in mid-2015 that kept the ownership of the park in local hands with a new board and man-agement.

The refinancing took place against a takeover bid by another racing millionaire – Tony Quinn.

A few weeks before the track was placed for tender in early 2015, Mr Quinn had offered to buy the debt-laden company for $3.6 million

He told shareholders he would inject cash and work his entrepreneurial magic to redevelop the park.

But the shareholders included members of the local Taupo Car Club with a lease agreement for use of the track who were unimpressed and sought other buyers.

The 80-year old Mr Izard was a shareholder in Taupo Motorsport Park, who came forward with the rescue package.

His fortune is valued at about $80 million. He owns property in Auckland, a portfolio of shares, and set up Izardair in 2011.

He has also proved a generous philanthropist with a $1.8 million donation toward the con-struction of the Izard Hospice House in Taupo.

Auckland’s optimism upshift in decisionmaking functions and respon-

sibility to local leadership, with co-operation be-tween central and local government over a period of five years, to ensure momentum is maintained.

In Auckland, the housing market, among other factors, continues to be a key for optimism across the industry.

Despite attempts to cool the market, including lending restrictions and new requirements for for-eign investors, the average value increases remain significant with the region’s median house price now above $900,000.

Meanwhile, 61% of respondents expect to see growth in Auckland infrastructure projects over the next three years, up from 55% six months ago.

The energy sector has also seen a leap in con-fidence for anticipated workflow in Auckland, up from 13% to 40% in the latest survey.

AECOM NZ managing director John Bridg-

man says greater coordination between central and local government will be essential to support the strong economic impact in Auckland.

Sector confidence is being challenged by skills and materials shortages remain. Forty percent of respondents say addressing the shortage of skilled labour and risk of materials shortages are their biggest challenges, along with retention and qual-ity of employees.

In the latest survey, big data and smart tech-nology have emerged as major issues as industry players assess how they will affect the way they do business.

Most respondents believe there will be a sub-stantial change to how business operates within two to six years. However, divergent viewpoints are apparent; assessments range from significant change and industry disruption, to it’s just hype and change won’t occur as quickly as anticipated.

From page 1

PUBLISHER’S INFORMATIONEditorDeborah LaHatteDDI: 09 912 2712nzproperty@nbr.co.nz

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ReporterSally LindsayDDI: (09) 912 2720slindsay@nbr.co.nz

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DesignerChristel Heyneke

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AccountsNBR NZ Property Investor is published by Fourth Estate Holdings (2012) LtdLevel 3, Achilles House8 Commerce Street Auckland, New ZealandPO Box 1734, AucklandPh 09 307 1629, Fax 09 373 3997

ISSN 1179-6103

Flurry of commercial sales in Wellington

character to storage, transport and distribution companies such as TNL, Hookers, Linfox and Peter Baker Transport. Research from JLL’s latest Pulse report shows the Wellington industrial market has performed well over the first half of 2015, with a number of leases com-pleted in Seaview and Gracefield pushing prime rents higher.

This property is in a Special Business Zone which accommo-dates large scale business opera-tions and industrial activities such as the use or storage of hazardous substances.

From page 1

3 NBR NZ Property Investor

Tech boom changing face of office property Sally Lindsay

A rapid rise in the number of tech businesses and North American compa-nies opening in New Zealand has boosted the demand for serviced office space.

Multinational firm Servcorp, which specialises in serviced offices, says the demand for prime managed office space is increasing as North Ameri-can search engine and social media companies and B2B cloud software providers want to expand with minimal expense, establishment time and risk.

Servcorp spokeswoman Suzanne Scott says that what was once the domain of small and medium businesses has become the norm for global corporations wanting to enter a market rapidly and efficiently.

“They are familiar with the plug and play set-up of managed offices allowing them to enter the New Zealand market rapidly,” Ms Scott says.

The need for flexibility extends to the office lease. “Tech firms know their head count can change dramatically within a short time and need an option with scalable infrastructure to support their growth,” she says.

“We are also noticing that the IT and media businesses are becoming leaner in terms of their physical space requirements, with the office becom-ing a place to network with peers in sector specific hubs.”

Ms Scott says Kiwi businesses looking to enter new markets are also embracing this model. “Increasingly we are seeing Kiwi companies using serviced offices as a bridge into Asian markets, particularly China, where maintaining a high-profile office location is fundamental for portraying a successful brand.

“The space is always in prime commercial locations and helps create the impression that Kiwi businesses have an existing foothold in that mar-ket with prospective customers.”

Ms Scott says the company’s latest New Zealand acquisition is the 26th

floor of the PwC building in downtown Auckland, which has doubled its capacity in the city.

Meanwhile Savills’ latest global cities report shows creative and digital businesses have been flourishing while financial corporations have been struggling to rebuild in the wake of the global financial crisis.

As the finance and service revolution of the 20th century gives way to the digital age of the 21st century, there is a big difference in most world cities between rents paid for the creative or digital scale-up and a hedge fund, although the gap is closing.

This is because the size of the digital and creative sector is growing faster than the finance industry in many cities. It takes time for the nature and location of office stock to change from the type of large floorplate cor-porate premises required for banking to smaller, flexible and more dynamic space required by creative and digital tenants. In Sydney, creative industry companies are paying more per person for office rents than finance com-panies are.

Relatively low demand for financial offices in Sydney means the city has some of the cheapest rents for this sector among world cities, paying well below the world average per person.

While office rents in the financial sector of the 12 global cities Savills monitors fell by an average of 1.8%, the creative sector offices saw growth of 8.6%.

Ecan commissioners slightly cheaper, Ngai Tahu seeks greater unelected powers

Chris Hutching

Government-appointed Environment Canterbury commissioners cost Canta-brian ratepayers slightly less this year.

Hawke’s Bay-based chairwoman Dame Margaret Bazley’s remuneration slipped from $220,312 in the 2013/14 year to $205,627 this year.

Commissioner David Bedford overtook David Caygill as the next high-est paid apparatchik at $165,216 ($169,012) with Mr Caygill’s pay falling to $144,108 ($182,403).

The overall cost to ratepayers was $946,210 ($1.04 million last year). The last elected councillors in 2009 were paid approximately $50,000

each. The pay rates are published in the latest annual report. During the year the government replaced retiring commissioner Donald

Couch with another Ngai Tahu representative and a former elected council-lor, Elizabeth Cunningham.

Ngai Tahu also featured during this week at select committee hearings into the government’s half-democracy bill for Ecan.

Ngai Tahu stood out as one of the few submitters to support the govern-ment scheme for appointing half of the Ecan board members and allowing some to be elected in local body elections next year.

The Ngai Tahu support is testament to the cultivation by Dame Bazley and her team who lace speeches and reports with special reference to tribal interests.

Ngai Tahu now enjoys representation as-of-right on a host of related plan-ning entities in Canterbury including a resource consent urban design panel vetting all new Christchurch buildings, three seats on the Greater Christ-church Urban Development Strategy, and various other statutory and con-sultation bodies.

The Ngai Tahu submitter told the select committee a return to democracy would threaten the tribe’s position as a treaty partner.

Ngai Tahu wants the current half-democratic structure to remain even beyond the purview of the current Bill to 2019 – with the government ap-pointees to include three Ngai Tahu representatives of the six government appointees.

Meanwhile, the annual report shows Ecan taxed unrepresented Canta-brian ratepayers $87 million, the bulk of it from urban ratepayers who were charged an additional 4.7% in rates during the 2014/15 year, compared with the annual inflation rate of 1.5%.

Another $27 million was gleaned from government grants, and in ad-dition to other sums from various activities, the overall revenue was $167 million. Expenditure was $157 million, leaving a “surplus” of $10 million.

One of the biggest items of expenditure was the Canterbury Water Man-agement Strategy, which cost slightly more than budget at $19 million for the year.

Fifty-six employees were paid between $100,000 to $379,000 which compares with 47 staff last year.

NEW SERVICED: offices in Auckland’s downtown PwC tower

NBR NZ Property Investor 4

Rural listings sink to five-year lowChris Hutching

Rural property listings have fallen to their lowest level in 15 years, accord-ing to NZR Real Estate director Peter Barnett.

He has surveyed the number of ad-vertisements in national rural publica-tions.

The last week in October is typi-cally the peak advertising week of the year for farms in these publications.

His analysis includes pastoral, cropping and dairying farms bigger than 20ha – excluding lifestyle proper-ties.

Mr Barnett says the listings shortage is good news for sellers because the lower number of listings means fewer choices for buyers.

Many of the properties will go to ten-der or auction in the next five weeks or so.

Most recent sales data from the Real Estate Institute shows there were 12 more farm sales (+3.5%) for the three months ended October 2015 than for the three months ended October 2014. Overall, there were 358 farm sales in the three months ended October 2015, compared to 337 farm sales for the three months ended September 2015 (+6.2%), and 346 farm sales for the three months ended October 2014.

There were 1731 farms sold in the year to October 2015, 9.9% fewer than were sold in the year to October 2014.

Compared with October 2014 the REINZ All Farm Price Index fell by 5.9%.

Average Auckland residential returns ease to 3.6%Chris Hutching

Average rental returns on the median sales price in Auckland has slowly trended downward since June 2013 as property prices rose faster than rents.

Crockers estimates the average return for Auckland rental properties is 3.6%, down from 4.01% in October 2014.

The returns calculations do not incorporate in-creases in capital value.

In the latest Crockers Property Investment In-dex survey in association with IPSOS, nearly two-thirds of the owners and landlords interviewed feel rental prices are fairly priced, while nearly a third believe rents are below fair price.

Nearly half are not planning to increase rents within the next six months, while 42% anticipate an increase of 3% or more.

Increases in costs associated with the rental property – rates, insurance and maintenance – are all likely to contribute to a decision to increase rents. An increase in interest rates is also another factor.

Nearly half the investors and landlords inter-viewed (45%, down six points) are not planning to increase rents in the next six months.

Most of those planning to increase rents are anticipating an increase of 3% to 4%.

An increase in local rates is most likely to lead to an increase in rents (72% of respondents, up 8 points) but other costs like insurance and prop-erty maintenance also play a part. Compared to the previous survey in July14, significantly fewer respondents are saying an increase in interest rates would influence them to increase the rent on their investment property. Average rents across the eastern suburbs sit above the average for the greater Auckland region (Pukekohe to Rodney).

The average price for a two-bedroom dwelling in the eastern suburbs is on a par with the average for three-bedroom dwellings in the greater Auck-land region.

“Since 2011 we see consistent increases in rents across regions, two-bedroom prices in-creasing 19% to 22% and three-bedroom prices increasing 14% to 19%,” researcher Kim Sinclair

says. “This month the Auckland Rental Property Performance Index is up sharply, with a signifi-cant shift away from those who think their invest-ment performance will get worse over the next 12 months to those who think it will remain the same.

“The Auckland Rental Property Investment Index is also up sharply this quarter, with a sig-nificant shift from those planning to reduce the size of their property investments over the next 12 months to those planning to make no changes to their property investments.

“These results suggest that the new property rules that came into effect in October have started to have an impact on the market, but perhaps not as expected – given that this shift in optimism sig-nals an expectation that the market is not going to retreat.”

Auckland rents have returned to the August peak of $446, while two-bedroom rents across New Zealand increased to their highest level.

Rents for three-bedroom properties in Auck-land dropped to $570 after peaking at $580 in August. .

Farms advertised for saleNumber of farms advertised for sale in the last week of october in main rural property papers.

Sources: NZ Farmers Weekly & NZ Farmer/Straight Furrow publications

2007 2008 2010 2011 2012 2013 2014 2015 2016

020406080

100120140160180200

Holly Lea repays all debt, plans expansionChris Hutching

The owners of Fendalton retirement village Holly Lea say they have repaid its debts to the Southland Building Society after selling other investments.

The Christchurch village, built in 2008, was in the news earlier this year because of its financial difficulties.

The McLean Institute Charitable Trust that op-erates Holly Lea entered into a 50:50 partnership agreement with retirement village developer Re-tirement Assets. In addition to reducing bank debt, the partnership deal included a finance restructure

and “strengthening” the management team. Graham Wilkinson, managing director of

RAL, says as well as repaying the bank in full, RAL has installed Juliane Brand as manager of the village.

“Juliane is a respected and experienced age care facility manager and is well advanced in her studies for a masters of public health at Otago University,” Mr Wilkinson says.

“We have also secured John Clarke, a general manager of hotels for 20 years, including Noah’s Christchurch and Queenstown’s Millennium Ho-tel, as our business manager for both Holly Lea

and The Russley Village.”Under the new manage-

ment broom, Holly Lea has sold several apartments and plans are well under way for building a hospital and a memory-assisted unit.

“We anticipate lodging for building consent shortly and breaking ground in the second quarter of 2016.”

Built on the former site of the historic Holly Lea mansion, Holly Lea Village is the only retire-ment village in the middle of Fendalton.

Graeme Wilkinson

5 NBR NZ Property Investor

Opportunity to own a slice of prehistoric New Zealand Sally Lindsay

A private Stewart Island eco-sanctuary regarded as being of global significance is on the market.

The Dancing Star Reserve, a 172ha property, which adjoins Rakiura National Park, has been a private, protected ecological refuge for native flora and fauna for the past 15 years.

As well as encompassing mountainous ter-rain, garden meadows, five beaches and some of the oldest native forest in New Zealand, the property features a high-tech, ecologically en-gineered fence to exclude predators, as well as state-of-the-art electronic and video surveil-lance.

The listing is being touted as an opportunity to own a piece of prehistoric New Zealand and turn it into a top tourist destination, an exclusive eco retreat or an education centre.

The property is one of the largest pieces of privately-owned land on Stewart Island.

Wildlife preservation and bio-diversity conservation have been the core focuses of the property’s owners, the California-based, not-for-profit Dancing Star Foundation. The refuge has more than 126 na-tive species and contains one of the highest concentrations of kiwi in New Zealand.

Buildings within the Dancing Star Reserve include a 230m² his-toric barn and an environmental ed-ucation centre with a shower block and kitchen. A fulltime conserva-tion manager lives on site to main-tain the property and its inhabitants.

The owners have an asking price of $2.25 million on the property.

New Zealand Sotheby’s broker Matt Finni-gan says the property will appeal to a buyer who would like to appreciate and preserve what the

land was several hundred years ago. “There are very few places like this remaining in New Zea-land – or the world, for that matter.”

Rich Lister Rooney knocked back on high country schemeChris Hutching

An irrigation scheme proposed by Canterbury businessman and Rich Lister Gary Rooney has been refused resource consent.

He and business partners wanted to build two irrigation and hydro electric dams in the Lewis Pass in Canterbury’s high country.

It would have used the Kakapo Brook, which flows into the Hope and Boyle Rivers and ultimately the Waiau River, one of Canterbury’s large braided rivers.

The area is well known to outdoor recreationists, and at the margins of viable farming. The application was from Rooney Farms and Main-power NZ, a north Canterbury electricity company.

Rooney Farms owns Glen Wye Station comprised of 20,830ha of Crown pastoral leasehold land and 4780ha of freehold, with about 800ha of developed flat land. The applicants were seeking 1600L/s from Kakapo Brook, flat-lining Kakapo Brook downstream of the take, for nearly 80% of the time.

But the primary reason for refusal of the scheme is the potential ef-fect on other abstracters of water downstream.

The Hurunui catchment is subject to water allocation rules set down in the Hurunui Waiau Regional River Plan.

The report of the resource consent commissioners Mike Freeman, Paul Rogers, and Craig Welsh contains strongly worded reasons for the decision.

“There are a number of significant adverse effects, such as those on natural character and reliability of supply for existing abstractors, where we have concluded that the adverse effects will be more than minor.

“In addition, there are a number of fundamentally important effects, specifically those on instream aquatic life including macroinvertebrates, periphyton and fish where we are not satisfied that the adverse effects will be minor.

“These include – the grant of all of the water permits applied for, due to the state of full allocation, will result in the over allocation of water in this reach; the proposal could have more than minor adverse effects on the mauri of the waterbody particularly the Kakapo Brook.

“We cannot conclude with adequate certainty that the adverse effects on river bed birds, particularly native birds will be minor.

“We cannot conclude with adequate certainty that the overall adverse effects on the Lower Dismal Valley swamp will be minor.

“Overall, having regard to the components of natural character we have described through the decision, the significance of some of the changes and uncertainty with respect to outcomes on aquatic life, bed substrate and riparian margins and taking into account the proposed con-ditions we consider the adverse effects on natural character will be more than minor.”

The water abstracted from Kakapo Brook would have been stored in two out-of-channel storage dams capable of holding up to 700,000 and 300,000 m3 of water.

A recommendation to the panel from Environment Canterbury staff against the scheme identifies these issues:n the application was deemed non-complying under the former river plan and prohibited activity under the proposed and operative versions of the HWRRP; and n the proposal was also contrary to the National Policy Statement for Freshwater Management (2014).

Forty two public submissions were received. Five were in support, 32 against, and the other five neither in favour or against.

Waimate businessman Gary Rooney entered the NBR Rich List with a value of $90 million based on his earthmoving business.

Mr Rooney has also been involved in the $82 million Rangitata South Irrigation Scheme, which is the country’s biggest purpose-built storage facility for irrigation.

MAMAKU POINT on Stewart Island’s Dancing Star Reserve

REGENERATING NATIVE forest and ancient rimu at eco-sanctuary

NBR NZ Property Investor 6

Harcourts goes to Canada Harcourts’ just departed New Zealand chief executive, Hayden Duncan, is going to lead the company’s first foray into Canada. Mr Duncan, who left his role at the end of October, is moving to Canada early near year to estab-lish a network of Harcourts franchises out of Vancouver. Canada will be the 10th country in which Harcourts has offices. Mr Duncan says there are many reasons why Canada is an obvious choice for Harcourts. “In many ways it is similar to New Zealand and Australia, plus it is a Commonwealth country. “The crucial difference is that consumer expectations of realtors and the real estate industry in Canada are much lower than they are in New Zealand,” Mr Duncan says. He says that gives the company an opportunity to set a new level of expectation for real estate buyers and vendors in Canada.

Surplus Porirua land for saleThirty blocks of Porirua City Council land are for sale. The land parcels were iden-tified in a recent review and include both large sections and small strips. The stri[ps are likely to be sold to neighbours. Ken Douglas, chairman of the coun-cil’s property subcommittee, said the parcels of land were identified during a re-cent review. The priciest sections are the empty grass area at 7-9 Prosser St and 7 Serlby Pl in the city centre. The Prosser St land has a government valuation of $713,000 and the city centre building, which needs to be earthquake strength-ened, is worth $630,000. Other properties include a car park behind the Mobil petrol station in Lyttelton Ave, part of Mungavin House and sections in Ocean Pde, Pukerua Bay, Driver Cres, Cannons Creek and Whitehouse Rd, Titahi Bay. Re-serve land for sale includes Moray Park in Papakowhai, Owhiti Park in Titahi Bay, Limerick Reserve in Ascot Park and Penryn Reserve in Camborne.

$10m performing arts centre Land is being cleared at Kapiti College as the first stage of a $10 million communi-ty performing arts centre gets under way. It will include a 348-seat performance theatre, a black box theatre to seat 100, and a box office, teaching and rehearsal spaces, such as a drama and dance studio, music and film-making classrooms, practice rooms, and a recording studio.

CentrePort ‘plenty big enough’ for public listingHorizons Regional Council chairman Bruce Gordon has proposed publicly list-ing Wellington’s CentrePort. Mr Gordon raised that in a report to his council last week. Horizons and Greater Wellington Regional Council had met with Centre-Port last week to discuss the port’s performance. CentrePort had been having a “very good year” and paid a special dividend, Mr Gordon said. Horizons owns 23.08% of the port, while Greater Wellington Regional Council is the majority shareholder with 76.92%. He said CentrePort had reached a turnover figure that would make it eligible to be a publicly listed company. Other port companies had listed at $75 million and $40million, while CentrePort had a turnover of nearly $75million, Gordon said. He suggested listing it would be one way to keep central government hands off it.

Napier’s art deco buildings less shakyAuckland University’s civil and environmental engineering department saysNapier’s heritage art deco buildings may be safer in an earthquake than has pre-viously been thought. Napier’s central area was rebuilt after the devastating 1931 Hawke’s Bay earthquake, and commercial property owners are now struggling to bring 80-year-old buildings up to seismic code. Stricter rules since the Canter-bury earthquakes has put some art deco buildings under threat. But the report concludes the city’s building stock may be more robust than previously thought, because traditional seismic surveying has not taken all aspects of its construction into consideration. The report said while Napier’s art deco buildings were “of im-mense value to the cultural and civic heritage of the Hawke’s Bay community, the reinforced concrete buildings’ abilities to withstand earthquakes was “generally underrated in simple, force-based assessments” .

BRIEFS

7 NBR NZ Property Investor

Palmerston NorthWhere: 602 Tremaine AveDetails: A 840m2 industrially-zoned building on 1,762m2 with three sepa-rate tenancies sold for $925,000. Agents: Karl Cameron, Lewis Town-shend, Bayleys Manawatu

MartonWhere: 12-14 High StDetails: A two-level 440m2 building on a 784m2 site sold vacant for $50,000. The ground floor is commercial space with residential accommodation upstairs with two bedrooms, lounge, kitchen and bathroom. Agent: Dave Looney, Bayleys Manawatu

FoxtonWhere: Duncan St & Ladys MileDetails: A 26,000m2 industrial complex, which was formerly the Feltex Carpet factory, on 6.6ha sold for $925,000. The current gross rental is $200,000 a year with 9600m2 vacant. Agents: Karl Cameron, Lewis Townsh-end, Bayleys Manawatu

WellingtonWhere: 25 Taranaki StDetails: The Zibbibo Restaurant build-ing, formerly the Taranaki St Police Station, with Zibbibo leasing back the gound and first floors, the basement ( former police cells leased as Hashigo Craft Beer Bar and with air rights above

the building transferred to the rear vacant carpark site and a $1,940,000 valuation as at September 1 this year has been sold, with settlement pend-ing.Agent: Carl Hastings, Paul Hastings & CO

Where: 155-157 Waterloo Road, Lower HuttDetails: A confidential party sold a 1420m2 industrial building with 2746m2 land.Agent: Dharmendra Mistry, CBRE

SALESTransactions

Commercial property listings from NBR NZPI also appear on NBR ONLINE

AUCTIONS AucklandWhere: 85 Cavendish Drive, ManukauDetails: A 3893m2 commercial building plus canopies sold for $10 million on a 7.14% yield on its first time to market in 20 years. Located opposite the well-established Manukau Supa Centa and with 150 plus carparks, it has three strong tenants: Big Save Furniture, Reece Plumbing and Smart Marine.Agents: Gareth Fraser, Charlie Os-croft, Leroy Wolland, Jeremy Barnett,

Colliers International

ChristchurchWhere: 207 Harewood Rd and 415 Greers Rd, Bishopdale

Details: A 330m2 residential dwell-ing converted for business use with 16 parking spaces on a 1328m2 high profile corner site, in two titles, sold for $1,180,000 at a 7.1% yield. It has a new six-year lease to veterinary clinic Pet Doctors NZ, in occupation since 2007, which is returning $83,500 with 2x4 RoR. Agents: Nick O’Styke, Stewart White, Chris Frank, Bayleys Canterbury

LEASES Auckland Where: 699 Rosebank Rd, RosebankDetails: 485 m2 offices including car parks were leased for $179,360 a year.Agent: Rick Kermode, Knight Frank South Auckland

Where: 12 Maich Rd, ManurewaDetails: A 480m2 warehouse was leased for three years with two-yearly rent reviews and 2x3 ROR for $51,000a year net plus GST.Agents: Piyush Kumar, Peter Migou-noff, Bayleys South Auckland Where: 6B Marphona Crescent, TakininiDetails: A 740m2 warehouse, 123m2 offices and 13 car parks on an indus-trial site were leased for four years at $137,500 a year net plus GST, with CPI rent reviews.Agents: Peter Migounoff, Katie Wu, Bayleys South Auckland Where: 70 Spartan Rd, Takinini

Details: A 2600m2 yard on an ndus-trial site, plus 150m2 office space, was leased for two years for parking trucks at $66,000 a year net plus GST with annual rent reviews to CPI and a one and 1x2 ROR. Agent: Peter Migounoff, Bayleys South Auckland WellingtonWhere: Ground Floor,102 112 Lambton QuayDetails: Lambton Quay Sales Ltd leased approximately 157m2 retail space to Estee Lauder LtdAgent: Dharmendra Mistry, CBRE Where: Part Level 5, 342 Lambton Quay, WellingtonDetails: Robt. Jones Wellington Assets Ltd leased approximately 80m2 office space to DAPAANZAgent: Paul Soulis, CBRE Where: Part Level 2 Solnet House, 70

The TerraceDetails: Robt. Jones Holdings Ltd leased approximately 356m2 office space to Talent 2 LtdAgent: Paul Soulis, CBRE Where: Part Level 2 Central on Midland Park, 40 Johnston StDetails: Precinct Properties Holdings Ltd leased approximately 110m2 office space to Dalton Strategy Consulting LtdAgent: Paul Soulis, CBRE Where: Part Level 3 Central on Midland Park, 40 Johnston StDetails: Precinct Properties Holdings Ltd leased approximately 350m2 office space to AccentureAgent: Paul Soulis, CBRE Where: Simpl House, 40 Mercer StDetails: Zeta Willis Ltd leased approxi-mately 175m2 office space to Angus & Associated Ltd

NBR NZ Property Investor 8

To submit your transactions please email nzproperty@nbr.co.nz

Agent: Paul Soulis, CBRE

Where: 9 Allens Road, East Tamaki Details: A 1274m2 warehouse and 283m2 office/amenities were leased.Agent: Josh Franklin, Knight Frank South Auckland.

Where: Part of 18 Poland Rd, Wairau ValleyDetails: Some 600m2 warehouse space with 10 car parks was leased for $66,000 a year net ($110/m2).Agent: Adam Watton, Trevor Duffin, BayleysNorth Shore Commercial

Where: Unit 17, 77 Porana Rd, Wairau ValleyDetails: A 220m2 warehouse was leased for $27,000 plus GST a year ($123/m2).Agent: Adam Watton, BayleysNorth Shore Commercial

Where: Unit B, 227-229 Bush Road, AlbanyDetails: A 595m2 warehouse and 240m2 offices were leased for $113,450 a year plus GST ($135/m2). Agents: Matt Mimmack, Alex Strever, Laurie Burt, Bayleys North Shore Commercial

Where: Unit A, 4 Ride Way, AlbanyDetails: Some 225m² of office space and 107m² of warehouse space., with six carparks were leased for $50,000 a year plus GST ($148/m2).Agents: Laurie Burt, Ashton Geissler, Bayleys North Shore Commercial

WellingtonWhere: Unit 6, 30 Downer StDetails: Unit 6 is part of an eight-unit complex in central Lower Hutt. It is a

high stud, 67m2 self-contained of-fice unit with a toilet and kitchenette located on its mezzanine level. It was leased $12,300 a year ($180/m2).Agent: Ben Taylor, NAI Harcourts Wellington

ChristchurchWhere: 29 Dalziel Place, WoolstonDetails: A 515m2 new industrial build-ing was leased for $60,000 plus GST and opex Agents: Myles Addington, Elliot Clayton, Knight Frank Christchurch

Where: U2, 55 Kennaway Road, Christ-church. Details: A470m2 new industrial unit was leased for $72,500 plus GST and opex.Agent: Campbell Taylor, Knight Frank Christchurch.

Transactions

LEASES

Where: Unit 1, 32 Constellation Drive Details: The 253m2 retail space and 178m2 office space sold for $1,970,000 on a 6.8% yield. The net rental income from tenants equates to $135,000 a year.Terry Kim, Bayleys North Shore Com-mercial; Harcourts

Where: 2 Sawmill Rd, RiverheadDetails: The 2122m2 vacant industrial land was sold for $580,000 ($273/m2).The land is part of the industrial subdivision of a former Carter Holt Harvey site.Agents: Trevor Duffin, Rosemary

Wakeman, Ashton Geissler, Bayleys North Shore Commercial

Where: Unit 1, 32 Constellation Drive, RosedaleDetails: A 253m2 shop with 178m2 offices, refurbished in 2013, sold for $1,970,000 plus GST on a 6.8% yield. Tenancies’ annual net rental income is approximately $135,000.Agent: Terry Kim, Bayleys North Shore Commercial; Harcourts

Where: 281A Onehunga Mall, One-hunga Details: 128m2 of retail space sold for

$395,000 Agent: Allan Myers, Knight Frank South Auckland.

Where: 9 &13 Lorien Place, East TamakiDetails: The property was sold for $2,500,000Agent: Josh Franklin, Knight Frank South Auckland. Christchurch Where: U10, 31-33 Tyne St, AddingtonDetails: A 96.99m2 office unit sold for $460,000.Agents: Sam Stone, Tom Lax, Knight Frank Christchurch

SALES