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Privately circulated to commercial investors, vendors, professionals and financiers JULY 27 2009 / ISSUE 28
DEVELOPMENT
RESTRICTION
LIFTED
Selective consultation
North Shore City
Council has opened
up its tight restric-
keeps public in dark
tions on property Hurunui Water project finally going public – to local storm of protest
development in the
Birkenhead area by Chris Hutching Ministry of Agriculture’s Sustainable Farming Fund al-
investing $19 million located $225,000 toward the project in late 2003, and in
to improve the waste An irrigation project backed by rural property owners July 2008 an additional $385,000 was awarded. In ad-
water system. in the Hurunui District north of Canterbury has lodged dition the project has received support from the district
A moratorium was resource consents to damn the pristine Hurunui River council and Enterprise North Canterbury as well as its
placed on the lower in two places. shareholders, notably parties associated with Eskhead
Birkdale catchment The plans to irrigate 40,000ha have been around for Station, Ngai Tahu Property, and the region’s lines net-
in 2006, stopping many months and project manager, Amanda Loeffen, work company, MainPower NZ.
all development issued a media statement a couple of weeks ago launch- Last year, NZ Property Investor spoke with a man-
because the council ing the “water optimisation project.” But the lodging of ager at the Sustainable Farming Fund about the issue
would not allow any the resource consent applications last week prompted a of consultation and she said it had been a significant
added flow to the storm of protest in local newspapers from people dis- matter in the correspondence between the fund and the
wastewater network mayed at the idea of damning the lake-fed river, used irrigation company.
due to continuing by fishers and recreationists. Since that time the Hurunui Water Project has carried
dry weather over- This raises the question of how well the Hurunui out consultation only with selected stakeholder groups
flows in the area. Water Project is fulfilling its obligations to publicly and only in the rural areas in the Hurunui District.
consult on the venture. However, the Hurunui River is widely used by recre-
Approximately
The Hurunui Water Project has this obligation be- ationists from nearby Christchurch with its 300,000-odd
3600 properties were
cause it has received considerable taxpayer funds. The To page 2
affected.
The investment
EDITORS CHOICE
> Keen interest delays Fiji auction > Work starts on $220m housing plan > August agenda Page 5
Page 2 Page 4
> Hawke’s Bay investors least dour but
> Brothel to make room for Rugby World > Local body ‘bond bank’ Page 4 investment muted Page 6
Cup hotel Page 3 > Real estate paperwork put into plain > Leases and sales Page 6,7 and 8
English Page 5 > Mortgage research shows tentative
> Bowker outlines $50m philosophy
Page 3 > Crockers eyes Waitakere City potential signs of Aussie consumer optimism
Page 5 Page 8
NZ PROPERTY INVESTOR IS A PUBLICATION OF THE NATIONAL BUSINESS REVIEW
2 NZ Property Investor
PUBLISHER’S INFORMATION
Editor Reporter Design Accounts
Deborah LaHatte Chris Hutching Julia Collins NZ Property Investor is published by
DDI: 09 912 2718 Phone: 03 981 1050 DDI: 09 912 2735 Fourth Estate Holdings Ltd
Email: nzproperty@nbr.co.nz Email: c.hutch@clear.net.nz Email: jcollins@nbr.co.nz Level 14, Citigroup Building
23 Customs St East
Reporter Advertising Subscriptions Auckland, New Zealand
Jazial Crossley Freepost 2519 PO Box 1734, Auckland
Todd Scott PO Box 1734, Auckland 1015 Ph 09 307 1629, Fax 09 373 3997
DDI: 09 912 2762 DDI: 09 912 2713 Ph: 09 307 1629 or 0800 801 803
Email: jcrossley@nbr.co.nz Email: tscott@nbr.co.nz Email: customerservices@nbr.co.nz ISSN 1175-9909
NZ Property Investor 3
Transactions
Leases North Shore rental reviews to a confidential lessee > Details: A confidential party leased
> Where: Level 1, 9 Anzac St, Takapuna > Agents: Greg Healey and Ranjan a floor, 107m2, of industrial propery to
> Details: A confidential party leased Unca, Bayleys North Shore Commercial a confidential party for $20,000 a year
a refurbished and partitioned 182m2 ($186/m2), with 1x1 ROR
office floor with two carparksto a > Where: 52 Cirrenway Drive, Albany > Agent: Richard Moors, Bayleys North
confidential party for $35,000 a year > Details: A confidential lessor Shore Commercial
($173/m2) leased 694m2 retail (two floors) with
> Agent: Nick Howe-Smith, Bayleys 2 ROR with rental reviews at renewal > Where: Unit 5, 6 Rosedale Rd, Albany
North Shore Commercial for $80,000 a year ($124/m2) with > Details: A confidential party leased
10 carparks (included in rent to a 58m2 retail space to a confidential;
> Where: 3 Anzac St, Takapuna confidential lessee party with 1x3 ROR and one rental
> Details: A confidential party leased > Agent: Laurie Burt, Bayleys North review for $14,000 rental a year
to a confidential party a 259m2 office Shore Commercial > Agent: Richard Moors, Bayleys North
floor, with five carparks, on 1 ROR with Shore Commercial
a two-yearly rental review for $60,000 > Where: Unit I, 5 Miro Place, Albany
a year gross > Details: A confidential party leased > Where: 38 Anvil Rd, Silverdale
> Agent: Christina Heaven, Bayleys 75m2 industrial space (two floors) with > Details: A confidential party leased
North Shore Commercial two carparks to a confidential party for 636m2 retail space (one floor) with 10
$12,000 rental a year gross ( $160/m2 carparks to a confidential party with
> Where: Rear warehouse, 155 Wairau gross) with 1 ROR and one rental rental two yearly rental reviews and rights of
Rd, Glenfield, North Shore review. renewal for $55,000 rental a year
> Details: A confidential lessor leased > Agents: Caleb Belling and A S Tracey, > Where: Rosemary Wakeman, Bayleys
400m2 retail (ground floor) with four North Shore Commercial North Shore Commercial
carparks on 350m2 yard, outgoings > Where: Unit C, 25 Ashfield St, Wairau
$15.40/m2, for $32,000 a year (rental > Where: Unit A, B9 Victoria Rd, Valley
$80/m2) with 2x1 ROR, with annual Devonport > Details: Robert Ludovici leased 139m2
NZ Property Investor 7
Transactions
Leases retail (two floors) with two carparks for $34,000 rental a year, with 1x2 ROR. confidential party with one carpark
$13,500 a year to David Jenkin The tenant will tidy up office space (rental $30pw) for $30,897 a year on
> Agent: Ranjan Unka and Greg and do floors in return for two months 1x2 ROR
Healey, Bayleys North Shore rent holiday > Agents: Christina Hearch and Nick
Commercial > Agent: Rosemary Wakema , Bayleys Howe-Smith, Bayleys North Shore
North Shore Commercial Commercial
> Where: 12E Saturn Place, Albany
> Details: A confidential party leased > Where: Unit O, 86 Bush Rd, Albany > Where: Unit D, 16 Link Drive, Wairau
263.3m2 retail space (two floors) with > Details: A confidential party leased Valley
five carparks, to a confidential party for 76m2 (a floor) of a building with two > Details: A confidential party
$30,000 a year($113.9/m2) with three carparks ( rental $15pw) and $50pa/ leased 305m2 retail space with eight
rights of renewal m2 outgoings to a confidential party carparks and outgoings $27/m2 to a
> Agent: Laurie Burt, Bayleys North for $19,060 rental a year plus opex and confidential party for $73,00 rental a
Shore Commercial GST ($230/m2)with 2x3 ROR two yearly year with two yearly reviews and 1x6
> Agent: Caleb Belling, Bayleys North ROR
> Where: Unit 6c,84 Ellice Rd, Wairau Shore Commercial > Agent: Matt Mimmack and
Valley Christina Heaven, Bayleys North Shore
> Details: A confidential party leased > Where: A3 396 Rosedale Rd, Albany Commercial
125.4m2 retail to a confidential party > Details: A confidential family trust
with two carparks on a 1x2 ROR, rental leased a 156m2 two story apartment Christchurch
review in 2011, for $12,210 annual office building with three carparks to > Where: 8 Langstone Lane, Papanui
rental Christchurch-based Internet Co on > Details: A confidential party leased
> Agent: Trevor Duffin, Bayleys North a two year term with two rights of 324m2 warehouse/office space used
Shore Commercial renewal for $27,560 rental a year for health products manufacturing
> Agent: John Parry-Crooke, Bayleys for three years, opex included to a
> Where: Unit 5, 76 Paul Matthews Rd North Shore Commercial confidential party for $38,000 a year
> Details: A confidential party leased with GST and 1x3 ROR
one floor of an industrial building, > Where: Building E, 42 Tawa Drive, > Agents: Debby Kerr and James
186m2, with six carparks and $46pa/m2 Albany Stringer, Harcourts Commercial
outgoings to a confidential party for > Details: A confidential party leased
$25,000 rental a year with 2x2 ROR 250m2 offices to a confidential party > Where: 606 Colombo St
> Agents; Richard Moors and with six carparks for $66,720 with a > Details: A confidential party leased
Caleb Belling, Bayleys North Shore two year rental review 700m2 retail and office space with
Commercial > Agent: Ryan De Zwort, Bayleys two carparks for five years and three
North Shore Commercial month, opex of $5132 included, with
> Where: 35 Anvil Rd, Silverdale 1x2 ROR for $55,00 a year and GST to a
> Details: A confidential party leased > Where: L1, 17 Anzac St, Takapuna confidential party
one floor industrial space (440m2), > Details: A confidential party > Agent: Lindsay Curd, Harcourts
outgoings $8300pa/m2, with 10 leased a floor (121m2 and a common Commercial
carparks, to a confidential party for area) of an industrial buildings to a
Sales Auckland Richard Moors, Bayleys North Shore property is tenanted by BBR Design at
> Where: 1c, Mid City, 239 Queen St, Commercial $34,610 a year
Auckland City > Agents: Caleb Belling and Damian
> Details: A confidential party sold 79m2 > Where: Unit 608,Maison Commercial, Stephen, Bayleys North Shore Commercial
retail space on one floor to a confidential Auburn St, Takapuna
party for $2.67m.The annual net rental > Details: A confidential party sold new >Where: 1B Nile Rd, Albany
income is $169,800 and outgoings are 102.7m2 office space (a vacant floor) with > Details: A confidential party sold two
$19,527.83 three carparks to a confidential party for floors freehold mixed use in a 1980s
> Agents: Lyle Flood, Michael Block, Paul $350,000 building, with 14 carparks.The property is
Dixon and James Chan, Bayleys North > Agent: Nick Howe-Smith, Bayleys North tenanted by PIHC Ltd for $118,000 annual
Shore Commercial Shore Commercial net rental income for $1,340,000 on an
8.85% yield
North Shore > Where: Unit C1, 59 Apollo Drive, > Agents: Ryan De Zurant and Lyle Flood,
> Where: 2/39 Apollo Drive, Albany Mairangi Bay Bayleys North Shore Commercial
> Details: A confidential party sold 164m2 > Details: A confidential party sold two
vacant office space with five carparks to a near new floors of office space, 126m2, > Where: Unit 8, 86 Bush Rd, Albany
confidential party for $428,000 with four carparks to a confidential > Details: A confidential party sold 76m2
> Agents: Ryan de Zwart, Caleb Belling, party for $445,000 on a 7.77% yield.The of a 1990s freehold building with three
8 NZ Property Investor
Transactions
Sales carparks, outgoings $2500 approximately, 2171m2 1978 freehold industrial building > Agent: Ranjan Unka and Greg Healey,
for $263,705 at a yield of 7.8% to a on 4244m2 land to a confidential party Bayleys North Shore Commercial
confidential buyer.The property is for $1.5 million on a 10.67% yield. The
tenanted by Shoe Fit Clothing at $20,569 property is tenanted by Gulf Rubber NZ > Where: Unit 7, 10 Canaveral Drive
annual net rental income Ltd on an annual net rental income of > Details: A confidential party sold two
> Agent: CB, Bayleys North Shore $159,989 floors of a 300m2 four-year old industrial
Commercial > Agent:s Trevor Duffin and Laurie Burt, building with six carparks to a confidential
Bayleys North Shore Commercial party for $601,000 on an 8% yield. The
> Where: 54 Tarndale Grove, Albany property is tenanted with an annual net
> Details: A confidential party sold a > Where: 1/10 Triton Drive, Albany annual income $49,000
1996 480m2 freehold building on 1281m2 > Details: A confidential party sold > Agent: Laurie Burt, Bayleys North Shore
with 12 carparks to a confidential party two floors of a vacant 2003 industrial Commercial
for$1,171,500 on a 8.87% yield. The building (396.4m2)with four carparks to a
property is tenanted by UL international confidential party for $660,000 > Where: 144B Target Rd, Glenfield
(NZ) Ltd for $104,000 a year > Agent: Laurie Burt, Bayleys North Shore > Details: Boskonic Holding Land2
> Agent: Ryan De Zwart and Damian Commercial Ltd sold 92.8m2 ( a floor) of a 1997
Stephen, Bayleys North Shore Commercial freehold industrial with 11 carparks to
> Where: 357 Pine Valley Rd, Dairy Flat a confidential party for $636,000 on an
> Where: 6 Croffield Lane, Wairau Park > Details: A confidential party sold a 8.1% yield, with 1x5 ROR. The building
> Details: A confidential party sold a 6.1524ha freehold lifestyle property to a is tenanted by North Shore Building
freehold industrial building on 2835m2 to confidential party for $930,000 Supplies Ltd for an annual net rental
a confidential party for $1.4 million on a > Agent: Ranjan Unka, Bayleys North income of $52,000
7.68% yield. The property is tenanted by Shore Commercial > Agent: Danjan Unka and David
Placemakers at $107,622 a year. Devereux, Bayleys North Shore
> Agents: Trevor Duffin and Laurie Burt, > Where: Unit F, 33 Porana Rd Wairau Commercial
Bayleys North Shore Commercial Valley
To submit your > Details: Gordon and Elizabeth Soper
transactions > Where: 1 7Baypark Place, Beachhaven sold a 224m2 vacant freehold industrial
please email
nzproperty@nbr.co.nz > Details: A confidential party sold a propery to John Fallwell for $315,000
Global property
Mortgage research shows tentative signs of Aussie consumer optimism
Despite signs of growing concern in Genworth surveyed 2000 consumers
cial buffers, caution is needed. “This year’s re-
pockets of Australia’s mortgage market, during April and May on their attitudes
port shows consumer sentiment is respond-
Australians are feeling cautiously confident to mortgage and property markets for its
ing to falling mortgage costs, however the
in their ability to service debt as falling annual mortgage trends report. The 2009
effects of rising unemployment and under-
interest rates take effect, according to the report found 17% of borrowers struggled
employment remain unknown,” he said.
Genworth Financial 2009 Mortgage Trends to meet their mortgage repayments in the
Unemployment remains a threat for 24%
Report. past 12 months, down from 2008’s figure
Genworth CEO Martin Barter said the of 23%. of respondents, with 13% of borrowers hav-
somewhat optimistic results were surpris- The majority (51%) cited higher living ing less than one month’s mortgage repay-
ing given expectations for rising unem- costs and other debt obligations (26%) ments in reserve in the event they lose their
ployment and the likelihood for this to as the primary reasons for hardship. As job. The number of variable rate loans surged
translate into increased mortgage defaults. more Australians comfortably meet their to 85% in 2009 (up from 66% last year) and
“We are seeing the impact of increases mortgage repayments due to lower inter- high loan to value loans above 90% climbed
in unemployment and falling household est rates, a growing number (43%) believe to 35% from 21%.
incomes resulting from under-employ- now is a good time to buy property, up The global financial crisis has seen con-
ment in our arrears figures,” Mr Barter said. from 33% in 2008. sumers nominate the stability of their lender
“While this increase is up from a rela- While tentative optimism is emerging, as the second most important factor driving
tively low base, the trend shows that small financial conservatism reigns as Australians their satisfaction – a first for the five-year re-
increases in unemployment can quickly tighten their belts and build economic buffers port. No exit or early repayment fees remain
translate into repayment difficulties for to weather the downturn. This year’s report the No 1 satisfaction driver (apart from inter-
homeowners. So it’s interesting to see a showed 21% of respondents had no debt est rates) as overall satisfaction rates contin-
falling number of struggling borrowers in compared with 18% in 2008 and 15% in 2007. ues to be high.
this year’s report,” he said. The number of borrowers overpaying their Despite declining competition reducing
Genworth is the leading provider of mortgages also increased to 41%, up from the number of choices for borrowers, the pro-
lenders mortgage insurance in Australia, 31% in 2008. Furthermore, discretionary debt portion of broker written loans has increased
having insured more than $300 billion in is down as Australians deleverage en masse. to 41%, up from 30% in 2005. Positive senti-
residential mortgages since 1965. Mr Barter warned that despite these finan- ment towards brokers is also growing.