Archive | South Island

8 South Island commercial sales

Bayleys agents in the South Island finished 2018 with 8 commercial sales, including the sales of 2 vacant sites in the Izone Business Park in Rolleston, 27km south-west of central Christchurch, and their role in the sale of the South Dunedin Countdown store by Investore Property Ltd.

Canterbury

Christchurch

Hornby

Waterloo Business Park, lot 10:
Features: 8241m² of vacant industrial land
Outcome: sold for $1,854,225 at $225/m²
Agent: Nick O’Styke

Middleton

12 Hands Rd:
Features: 582m² site, 280m² industrial building; dual tenancies with separate roller door access
Outcome: sold “as is, where is” for $331,000 at a 10.21% yield
Rent: $33,804/year net + gst
Agents: Nick O’Styke & Ben Carson

Rolleston 

Izone Business Park, 18 Detroit Drive:
Features: 4200m² of vacant land
Outcome: sold to property developer for $651,000 at $155/m²
Agents: Stewart & Alex White

Izone Business Park, lot 5, stage 9:
Features: 3095m² of vacant land
Outcome: sold for $520,000 at $168/m²
Agent: Nick O’Styke

Woolston

376 Ferry Rd:
Features: 1013m2 site, dual access, 588m² warehouse & office building; some structural work required to lift seismic rating
Outcome: sold for $470,000 to an owner-occupier
Agents: Stewart & Alex White

Otago

South Dunedin

323 Andersons Bay Rd:
Features: 10,298m² site, 62m frontage to State Highway 1, 4071m² 6-year-old Countdown supermarket, initial 20-year lease from December 2012 to General Distributors Ltd plus 8 5-year rights of renewal
Outcome: sold for $19.328 million at a 6.26% yield
Agents: Sunil Bhana, Mike Houlker, Robin Hyndman & Jim McKinlay

Queenstown

159 Gorge Rd, unit 16: 
Features: 110m² strata-titled ground-floor commercial unit; lease expires late this year when new owners will occupy the premises
Outcome: sold for $430,000 at a 4.8% yield
Agent: Martin Barwood

Tasman

Takaka

90 Commercial St:
Features: 623m2 mainstreet site, 160m2 café, bar & restaurant; well established tenant
Outcome: sold for $780,000 at an 8.33% yield
Agent: Gill Ireland

Earlier story:
11 December 2018: Investore sells South Dunedin Countdown

Attribution: Agency release.

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Corrected: Wiri sale one of 4 for Colliers

The Trust Investments Property Fund has ended up with ownership of HEB Construction Ltd’s headquarters building in Wiri at a slightly higher price than it negotiated early last year after the rental figure was finalised, taking its portfolio of commercial properties to $150 million.

It was one of 4 recent transactions by Colliers agents. The others were in Christchurch, across the road from the casino in Hamilton and in Whakatane.

South

Wiri

Corrected: 105 Wiri Station Rd:
Features: 1.46ha heavy industrial site with frontage also to Plunket Avenue, 6317m² building, 4993m² of medium to high stud warehousing, the balance a mix of modern & older-style offices, 88 parking spaces, formerly occupied by Honda NZ Ltd, refurbished early this year before HEB Construction Ltd occupied it on a 15-year lease
Rent: the lease has annual 2.5% rental increases with reviews to market every 5 years (cap & collar mechanism)
Outcome: sold vacant for $9.85 million in February, contract signed last April by the Trust Investments Property Fund and settled in November on completion of the refurbishment at $20.12 million, based on the final rental
Agents: Greg Goldfinch, Hamish West & Ben Herlihy

South Island

Canterbury

Christchurch

4 Russley Rd, corner Yaldhurst Rd; & Rangiora, 300 High St, corner King St:
Features: 2 Caltex service stations up for sale & leaseback to Z Energy 2015 Ltd at auction on 10 December; Russley Rd: 4249m² site, 383m² floor area, leaseback term 10 years 1 month + 3 5-year rights of renewal from 28 February; Rangiora: 1987m² site, same renewal rights & lease terms
Rent: Russley Rd: proposed rent $310,490/year net + gst + opex; Rangiora: proposed rent $190,035/year net + gst + outgoings; both 2%/year fixed growth, market reviews at end of initial lease term
Outcome: both sold to an Auckland buyer – Russley Rd for $5.3 million, Rangiora for $3.335 million
Agents: Mark Macauley & Will Franks

South of the Bombays

Bay of Plenty

Whakatane

106 Commerce St:
Features: 1553m² site, 1013m² 2-level office building, 2 long-term tenants, 26 parking spaces, seismic rating 100% new building standard
Rent: $204,600/year net + gst
Outcome: sold for $2.6 million, at a 7.87% yield
Agents: Rob Schoeser & Simon Clark

Waikato

Hamilton

331 Victoria St:
Features: 364m² site, 710m² 2-level building opposite SkyCity & the new Riverbank Lane retail development, seismic rating 51% new building standard
Rent: $95,000/year gross + gst
Outcome: sold for $1.13 million at a 7% yield
Agents: Justin Wang & David Palmer

Attribution: Agency release, Trust Management.

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Investore sells South Dunedin Countdown

Investore Property Ltd has an unconditional agreement for the sale of its Countdown supermarket in South Dunedin, 10 months after a tender for it closed.

The sale of the property at 323 Andersons Bay Rd is for $19.328 million, representing an initial yield of 6.26% & a 5.6% premium over the $18.3 million valuation in the March accounts. Settlement is scheduled for 1 April 2019.

Philip Littlewood, chief executive of Investore’s manager, Stride Investment Management Ltd, said the Dunedin sale completed the divestment programme Investore announced in November 2017, associated with the purchase of 3 Bunnings-operated properties for $78.5 million in February 2018.

To buy the Bunnings properties, Investore decided to sell this Countdown, another one in Christchurch and the Fresh Choice in Queenstown. Sales of the other 2 were settled in March for $32.6 million.

The South Dunedin Countdown sits on 10,298m² and has a 4071m² floor area. The tender documents showed it was returning $1,225,375/year net + gst and had a 14.7-year weighted average lease term. Even after its sale, Countdown stores still dominate the Investore portfolio. At the March balance date they represented 73% of contract rent.

Earlier stories:
21 November 2018: Investore lifts rent but profit slips
6 August 2018: Investore launches share buyback
26 March 2018: Investore settles 2 property sales
5 March 2018: Investore sells Hornby supermarket property
2 March 2018: Stride’s 3-property sale to Investore settles
9 February 2018: Investore confirms 3-shop buy from Stride, and signs a sale
13 July 2016: Stride stapled securities & Investore start trading

Attribution: Company release.

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Augusta buys Queenstown site for second tourism fund hotel

Augusta Capital Ltd announced last Monday it had entered into an unconditional agreement to acquire land in the Queenstown cbd for a 5-star hotel development, and on Friday it confirmed settlement.

The site is at 17-19 Man St, en route to the Queenstown gondola. Augusta intends to transfer it to its proposed tourism fund. In the meantime, managing director Mark Francis said the company would continue to progress discussions with potential hotel operators.

“Locations for a hotel development in Queenstown do not come much better than this site,” he said. “The location is central Queenstown, within walking distance of all the key sights & activities in the Queenstown cbd, while sitting in an elevated position which provides premium, uninterrupted views out to the Remarkables.”

He said the vendor had obtained resource consent to undertake the proposed hotel development, which has been progressed to a level of detailed design. “Initial discussions have also been held with potential contractors regarding construction of the hotel, but a construction contract will not be let until a hotel operator is secured. It is expected that construction should commence by the middle of 2019.”

The total consideration payable under the agreement was $13.95 million for the land as well as the designs, intellectual property & site works undertaken to date.

The planned tourism fund already has one asset lined up – 54 Cook St, on the fringe of the Auckland cbd, which is being converted from office to a pod hotel for Jucy Snooze Ltd. The shareholders of Augusta Value Add Fund No 1 Ltd approved the sale of the building to the Augusta Capital group in September, awaiting transfer to the tourism fund.

Earlier stories:
23 October 2018: Fund shareholders approve sale to initiate Augusta tourism fund
24 September 2018: Pod hotel the opportunity for Augusta to close value-add fund with strong return and open tourism fund

Attribution: Company release.

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11 South Island commercial sales

Bayleys agents have sold 11 commercial properties around the South Island, from Nelson to Queenstown but mostly around Christchurch. They include 2 development sites in Selwyn District Council’s Izone business park and one in the Northfield business park in Papanui (pictured above).

South Island

Canterbury

Christchurch

Burnside

6E Sir William Pickering Drive:
Features: 141m² modern office unit; 2 tenants, one on 3-year lease, the other on 2-year lease, both with rights of renewal
Rent: $30,100/year net + gst
Outcome: sold for $430,000 at a 7% yield
Agent: George Phillips

Merivale

Carlton Mews, 21C Bealey Avenue:
Features: 92m² ground-floor retail space, insurance payout to be transferred to buyer on settlement
Outcome: sold for $525,000 with vacant possession
Agent: George Phillips

Papanui

Northfield business park, 62 Langdons Rd:
Features: 1250m² site, 434m² 2-level office building leased to 3 tenants on 3-, 5- & 6-year terms, 17 parking spaces
Outcome: sold for $2.55 million at a 6.06% yield
Rent: $154,424/year net + gst
Agents: Murray Madgwick & Greg Bevin

Riccarton

245 Blenheim Rd, unit 3:
Features: 239.5m² industrial unit
Outcome: sold with vacant possession for $600,000
Agent: Nick O’Styke

Rolleston

13 George Holmes Rd:
Features: 3001m² business-zoned landholding
Outcome: sold for $500,000 at $167/m²
Agent: Nick O’Styke

Izone business park, 12 Detroit Drive:
Features: 4230m² site
Outcome: sold to a developer for $655,600 at $155/m²
Agents: Stewart & Alex White

Izone business park, 14 John Morten Place:
Features: 2547m² industrial site
Outcome: sold for $446,000 at $175/m²
Agent: Nick O’Styke

North Canterbury

Amberley

16 & 753 Ashworths Rd:
Features: 24.62ha corner site on State Highway 1, various buildings including a café, rented house, cabin & sheds, plus mini-golfcourse, climbing tower & various other assault course structures
Outcome: sold for $1.3 million
Agents: Stewart White & Chris Frank

Kaiapoi

170B Williams St:
Features: 102m² retail space, 29m² verandah, seismic assessment 67% of new building standard; AMI Insurance Ltd will vacate the building next April
Rent: $31,360/year net + gst
Outcome: sold for $370,000 at an 8.48% yield
Agents: Stewart & Alex White

Lakes

Frankton

150 Glenda Drive:
Features: 400m² industrial site, 150m² 3-bay shed
Outcome: sold vacant for $790,000
Agent: Steven Kirk

Nelson

203-207 Trafalgar St:
Features: 218mcentral business district site, 400m2 building
Outcome: sold with vacant possession for $905,000
Agent: Doug McKee

Attribution: Agency release.

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7 Sockburn light industrial properties sold

7 light industrial properties in Sockburn were sold at Bayleys’ Total Property auction in Christchurch yesterday, leaving one neighbouring property, 10 Paragon Place, unsold.

Image above: The Sockburn properties taken to auction.

The sales agents were previously with Knight Frank, which was incorporated into Bayleys this year. 3 of the properties are occupied by vehicle dealership NZ Car Canterbury Ltd.

South Island

Canterbury

Christchurch – Sockburn

3 Paragon Place:
Features: 787m² site, street frontage over 50m, 412m² warehouse, office & showroom building developed in mid-2000s; occupied by NZ Car Canterbury Ltd as its compliance facility, current lease expires in June 2019, one 4-year right of renewal
Rent: $52,000/year net + gst
Outcome: sold for $780,000 at a 6.67% yield
Agents: Campbell Taylor, Craig Edwards & Terry Connolly

4 Paragon Place:
Features: 1621m² site in 2 titles on corner of Waterloo Rd, occupied by vehicle dealer NZ Car Canterbury Ltd, 526m² of high stud showroom space & ancillary offices, amenities, workshop & mezzanine storage; lease expires June 2019, one 4-year right of renewal
Rent: $87,312/year net + gst
Outcome: sold for $1.24 million at a 7.04% yield
Agents: Campbell Taylor, Craig Edwards, Nick O’Styke & Ben Carson

6 Paragon Place:
Features: 803m² site, 521m² warehouse & office building; leased to HVAC supplier & servicer AMT Mechanical Services Ltd until March 2020, one 3-year right of renewal
Outcome: sold for $925,000 at a 6.43% yield
Rent: $59,500 /year net + gst
Agents: Campbell Taylor & Craig Edwards

7 Paragon Place:
Features: 784m² site, 413m² standalone warehouse with substantial food grade fitout installed by tenant; leased to a manufacturer & global exporter of nutritional powdered dairy products until January 2023, one 5-year right of renewal
Rent: $48,500/year net + gst
Outcome: sold for $760,000 at a 6.38% yield
Agents: Campbell Taylor, Craig Edwards, Nick O’Styke & Ben Carson

8 Paragon Place:
Features: 500m² site, 267m² single-level warehouse, showroom & office building; leased to global property services company Cushman & Wakefield until June 2020, 3-year right of renewal
Outcome: sold for $550,000 at a 6.55% yield
Rent: $36,000/year net + gst
Agents: Campbell Taylor & Craig Edwards

12 Paragon Place:
Features: 1086m² site, 637m² warehouse & office building; occupied by engineering fabricator Action Automatic Manufacturing Ltd for over 20 years, current lease until November 2019 plus one 3-year right of renewal
Outcome: sold for $970,000 at a 6.41% yield
Rent: $62,221/year net + gst
Agents: Campbell Taylor & Craig Edwards

26-32 Waterloo Rd:
Features: 2864m² unsealed, fenced landholding in 3 titles, currently used for vehicle display; current lease to NZ Car Canterbury Ltd, which also occupies surrounding properties (3 & 4 Paragon Place), expires at the end of June next year with no further rights of renewal
Rent: $50,000/year net + gst
Outcome: sold for $1.11 million at $387/m² & a 4.5% yield
Agents: Campbell Taylor & Craig Edwards

Attribution: Agency release.

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10 commercial sales around South Island

Bayleys agents in the South Island have sold 10 properties – 7 in Canterbury, the others in Blenheim & Nelson.

South Island

Marlborough

Blenheim

Riverlands, 14 Sheffield St: 
Features: 9413m² industrial site in 2 lots, 809m² warehouse, office & retail complex
Outcome: sold with vacant possession for $1.35 million + gst
Agent: Grant Baxter

Riverlands, 5 Kendrick Rd: 
Features: 7928m² of bare industrial land in Riverlands Industrial Estate, adjacent to large winemaking facilities, 3 road frontages
Outcome: sold for $1,189,200 + gst at $150/m²
Agent: Grant Baxter

Nelson

48 Bridge St:
Features: 197m² site, 2-level 330m² central city character building, shop on the ground floor, barber upstairs
Outcome: sold for $850,000 + gst at a 7% yield
Agent: Gill Ireland

Canterbury

Christchurch CBD

818 Colombo St:
Features: 1019m² rectangular vacant site, 25m street frontage, previously home to 5-storey earthquake-damaged building that was demolished, resource consented for 7-level retail, hotel/serviced apartment & residential apartment development
Outcome: sold for $1.35 million + gst at $1325/m²
Agents: Mike Adams, Nick Thompson & Justin Hayley

Darfield

2 McMillan St:
Features: 1348m² site, 535m² Horndon Mews commercial building completely redesigned, extended & rebuilt in 2015, fully occupied by 7 retail & office tenancies, 18 parking spaces
Rent: $124,000/year net + gst
Outcome: sold for $1.6 million + gst at a 7.75% yield
Agents: Ben Carson & Nick O’Styke

Ferrymead

27 Waterman Place, unit 6:
Features: 136m² 2-level corner office unit, fully repaired to 67%-69% of new building standard, short-term lease
Outcome: sold for $369,000 + gst at a 7.09% yield
Agent: George Phillips

Hornby

36-38 Waterloo Rd (pictured above):
Features: 7082m² site in 2 titles, 2070m² industrial building, seismic assessment 70% of new building standard; 3-year renewed lease to Truck Stops (NZ) Ltd
Rent: $280,000/year net + gst
Outcome: sold for $3.525 million + gst at a 7.94% yield
Agent: Nick O’Styke

Kaiapoi

13A Stone St:
Features: 477.5m² modern warehouse & office building with container height motorised roller doors; 287m² vacant, 190.5m² leased
Outcome: sold for $520,000 + gst
Agents: Stewart & Alex White

Riccarton

2 Barry Hogan Place, unit 3:
Features: 777m² office premises in Workstation Business Park; buyer intends to occupy the 370m² vacant ground floor, 407m² first floor is leased at $110,196/year
Outcome: sold for $2.1 million + gst
Agents: Stewart White & Chris Frank

Wigram

36 Dakota Crescent:
Features: 250m² industrial unit, 5 parking spaces, 12 month lease back to vendor
Outcome: sold for $550,000 at a 7.55% yield
Agents: Ben Carson & Nick O’Styke

Attribution: Agency release.

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6 commercial deals around Auckland, Porirua & Central Otago

Colliers agents have reported 5 sales in Auckland, Porirua & Central Otago, including one at an auction brought forward, plus leasing of a design-build project in Penrose.

Isthmus east

Mt Wellington

4 Rakino Way:
Features: 4500m² site, 2180m² office & warehouse occupied by Fero Ltd
Rent: $291,504/year net + gst + opex from new 6-year lease with rights of renewal
Outcome: sold for $4.45 million + gst at a 6.55% yield
Agents: Ben Herlihy & Joshua Franklin

Penrose

15-21 Bell Avenue:
Features: 2.49ha site, 6600m² industrial facility, to be developed by Southpark Corp Ltd for an Australasian automotive & water products tenant on a 12-year initial lease
Agents: Hamish West & Paul Higgins

North-east

Takapuna

Parklane Motor Inn, 2 Rewiti Avenue:
Features: 3096m² site, 2160m² motor inn, 32 rooms, 40 offstreet parking spaces,
Outcome: sold for $10.6 million + gst
Agents: Dean Humphries & Gawan Bakshi

South

East Tamaki

24 Harris Rd, unit 7C:
Features: 267m² warehouse unit
Outcome: sold for $600,000 + gst, at a 5.43% yield, at auction brought forward from 17 October after pre-auction offer accepted
Agents: Jolyon Thomson & Greg Watson

South Island

Central Otago

Alexandra

85-87 Tarbert St:
Features: 2024m² site in 2 titles, 939m² retail showroom, office & warehouse leased to PGG Wrightson Ltd
Outcome: sold for $1.35 million + gst at an 8% yield
Agents: Mark Simpson & Rory O’Donnell

South of the Bombays

Wellington

Porirua

10 Norrie St:
Features: 854m² site, 660m² warehouse & showroom
Outcome: sold for $1.1 million + gst
Agents: Vince Southee & Dean Anderson

Attribution: Agency release.

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Tauriko building leads Colliers sales


Colliers sold 2 industrial & commercial properties in Nelson and at the Tauriko business estate (pictured) outside Tauranga last week. In Auckland, the agency has sold a warehouse & an industrial property with a high office component in Rosedale.

Yields were around 5.2% & 5.9%, but below 5% at Tauriko.

North-east

Rosedale

44 Arrenway Drive:
Features: 3972m² site, 3715m² warehouse & office
Outcome: sold for $13,117,116 + gst, at a 5.88% yield
Agents: Matt Prentice & Shoneet Chand

13 William Pickering Drive:
Features: 6813m² industrial property, 1933m² floor area – 904m² of offices on ground & first floors, warehouse 984m², dock 45m², 36 parking spaces
Outcome: sold for $11.4 million + gst, at a 5.24% yield
Agents: Shoneet Chand, Matt Prentice & Josh Coburn

South of the Bombays

Bay of Plenty

Tauranga, Tauriko business estate

47 Paerangi Place:
Features: 3988m² site, dual frontage, 2296m² building constructed in 2016, 517m² canopy, 18 parking spaces
Rent: $261,738.75/year net estimated rent from 2 tenants starting 1 November, CPI + 1% annual rent reviews
Outcome: sold at auction last Friday for $5.4 million + gst, at a 4.85% yield
Agents: Simon Clark, Rob Schoeser & Doug Russell

South Island

Nelson

76-82 St Vincent St:
Features: 3826m², 15-year ground lease to service station operator NPD; construction of the self-serve station is underway, with an estimated pump date of late November
Rent: $118,125/year net + gst, 1.75%/year fixed increases
Outcome: sold at auction last Thursday for $2.03 million + gst, at a 5.8% yield
Agents: Sam Staite & Geoff Faulkner

Attribution: Agency release.

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Millbrook Resort starts work on $50 million addition

Queenstown’s Millbrook Resort has won resource consent for the $50 million development of the neighbouring 67ha Dalgleish Farm into an addition to its golfcourse, interspersed with 42 sections for high-end homes.

Image above: Millbrook’s Ben O’Malley, project manager Stuart Anderson & senior construction manager Darin Paki Paki (both of Signal Management Group) on the new development site.

It’s taken owner Millbrook Holdings (NZ) Ltd 4 years of planning, appeals, hearings & zone changes through the Queenstown Lakes District Council. The company is 90.6% owned by the Ishii family of Tokyo, who have been involved in the resort since its development began in 1987. Individual residential sites are privately owned & freehold.

The multi-award-winning 200ha resort will add 9 golf holes to Millbrook’s 27-hole course, enabling it to operate 2 full 18-hole courses. The resort’s residential limit will remain at 450 homes.

Initial site clearance is underway and work has almost been completed under a separate consent to shift the Arrow irrigation pipe to make way for the development.

Groundworks include a raft of ecological & landscape enhancements, and the first land titles should be issued in late 2020. Once the new golfcourse is constructed & “grown in”, it should be playable by 2021.

Millbrook property & development director Ben O’Malley said the net was cast “far & wide” for project tendering, and the main earthworks contract went to Grant Hood Contracting Ltd, of Ashburton.

Experienced local turf specialist company TIC Projects Ltd (Geoff & Belinda Andrew), which developed the resort’s Coronet 9 course, has been awarded the main golfcourse construction project & a golfcourse irrigation installation contract.

Millbrook is still working through detailed design on works such as roading, reticulated services & the resort’s distinctive schist stone walls.
In the initial earthworks phase, 500,000m of material will be moved within the site. A “zero cut to fill” balance means all work will be carried out with material contained within the farm area, and topsoil stripped & stored before being re-spread once earthworks are complete.

Map: The additional golfcourse will be interspersed with 42 high-end homes.

Irrigation race connection & storage lake among upgrades

Mr O’Malley said Millbrook had been working alongside the Friends of Lake Hayes & the Otago Regional Council to support their initiative to discharge off-peak water from the Arrow River irrigation race to Mill Stream, which runs through Millbrook into Lake Hayes: “They believe this will help enhance the water quality of Lake Hayes and we have the means to provide them the link between the Arrow Irrigation Co Ltd pipe & Mill Stream.”

The regional council is part-way through a plan change process that will see a minimum flow placed on the Arrow River, from which Millbrook currently sources its golf irrigation water via the irrigation company.

The minimum flow process would pose a risk to Millbrook’s golf operations, as its sand-based tees & greens, installed to meet international PGA specifications, require daily watering: ‘”To guard against this risk we’re also constructing a 30 million litre water storage lake on the farm land.”

Mr O’Malley said the new 36-hole format at Millbrook had been described as a game changer for the resort, effectively adding 100% golf capacity with 2 18-hole courses that can be operated simultaneously.

Members’ course will change daily

He said the growing number of Millbrook Country Club members would be able to play an ever-changing private members’ course on a daily basis, with another 18 holes available for tourists & locals.

It’s also good news for the long-term future of the NZ Open, currently hosted at Millbrook in conjunction with Sir Michael Hills’ The Hills golfcourse.

The Open has long planned to move to a 3-course model, similar to international Dunhill Links and AT&T events, and having 2 courses available at Millbrook would enable this goal to be achieved.

The new land also lends itself to the development of 2 discretely & geographically separated residential neighbourhoods.

The large upper plateau contains 24 sites boasting elevated panoramic views over fairways & pastoral lands to the wider basin. The lower slopes are home to a further 18 sites with north-facing outlooks over an enhanced Mill Stream & the last of the new golf holes. Mr O’Malley expected most of the sites to sell for over $1 million each.

Parts of Mill Stream will be widened to create larger waterways & enhanced wetlands. The new development will retain a rural, agrarian style, with over 20ha of working farmland retained for grazing and retention of a historic woolshed.

The original 1860s farmhouse will also stay on the land, with some sympathetic additions.

Link: Millbrook Resort

Attribution: Company releases, website.

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