Archive | Archive – local property

Snapshot on local property, week to 14 July 2002

9 July 2002

Commonwealth Bank of Australia & subsidiaries have sold 4.4% of Colonial First State Property Trust for $84.2 million over the past 4 months, cutting their combined holdings to 58.08%.

Westfield NZ Ltd has completed the first stage (12 new stores, including a new McDonalds) of its $55 million 8500m² extension & upgrade of the St Lukes centre. Westfield director John Widdup said the centre would boast a very sophisticated choice of high-end fashion stores by Christmas, and by completion in mid-2003 will have an 8-screen multiplex, more than 150 fashion & lifestyle stores, a Farmer’s department store, Kmart and Foodtown supermarket.

The Property Council released its new premises conditions report last week — a tool to get agreement between landlords & tenants on the actual physical condition of premises before they enter a lease. It contains a comprehensive checklist, and attaching photos is encouraged. There’s a column to record who’s responsible for reinstating every item.

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Snapshot on local property, week to 4 March 2001

Latest: Force appraisal: it’s worth 22-32c, Force profit down 84%, Southern Capital sales and profit down but group busy, Hartner liquidation application now in court list, Kiwi Income has 61% of development trust, Metroport service expands.

4 March 2001

Force Corp sent out on Friday the appraisal by Grant Samuel & Associates of Sky City’s 25c/share bid for the multiplex developer and operator, and owner of the Force Entertainment Centre on Queen St. Grant Samuel has valued Force between 22-32c, which makes the offer “fair”. Force’s directors are expected to make a formal response about 4.30pm Monday.

Just to prove Force was not the healthiest of companies, it issued its half-year result on Friday afternoon: a $936,000 profit, down 84% from the December 1999 figure of $5.9 million, on sales up marginally to $11.7 million but total operating revenue halves to $19.8 million. Basic earnings/share were 0.6c (3.8c). No dividend will be paid. The company attributed the cinema admissions decline to “a run of very average film product” and the pressure of alternative entertainment. It said this experience was international.

Southern Capital Ltd’s sales fell 31% to $1.87 million, pretax operating surplus fell 60% to $215,000, but the after-tax surplus rose 1.9% to $542,000 in the December half, for earnings/share of 0.7c (0.73c). The company is in a development stage on a range of projects. In property, the 30%-owned Canterbury Supa Centa has its Warehouse and Smith City Market stores completed under budget and before schedule, several leases being negotiated and consent for the last 10,000m². Waimakariri District Council decided the company’s employment park should not be included in the proposed district plan. Six apartments have been sold of 18 designed for the company’s Frankton Rd site in Queenstown. Its 42.2%-owned Omaha South development is behind target on sales and the company has entered a 50:50 joint venture which has contracted to buy an undisclosed coastal property.

3 March 2001

Alotech Walls & Ceilings Ltd receiver Bernie Montgomerie has got his application to wind up Hartner Construction Ltd on to the court liquidation list, after having to fight to get leave of the court to make the application. Hartner has gone into receivership while Alotech has been pursuing its action — effectively a preferential treatment of creditors. The application is set down in the Auckland High Court liquidation list, 10am on Thursday 22 March, but a contested application would go to another hearing.

McConnell Dowell Corporation Ltd, now controlled by a subsidiary of South African conglomerate Anglo-American but still Melbourne-based, reported an 18-month operating profit after tax of $A19.01 million to December, just short of the $A19.93 million earned in the previous 12 months. Sales for the 18 months totalled $A510 million, compared to $A449 million for the previous 12 months.

26 February 2001

Kiwi Income Property Trust has moved to 61.44% of Kiwi Development Trust, developer and owner of the Royal SunAlliance Centre on Shortland St.

Port of Tauranga and Tranz Rail have reached an interim agreement to extend the Auckland Metroport service to limited weekday operations, turning it into a 24-hour seven-day business. Metroport is a dry port in South Auckland which uses spare rail capacity to transport containers between it and the Tauranga port, avoiding Auckland road congestion and competing with the Port of Auckland.

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Snapshot on local property, week to 2 June 2002

1 June 2002

Expressions of interest in Whangarei City Council’s 7.5ha Kaituna maritime industrial park close on Friday 7 June.

Submissions on the proposed rating valuations rules version 3.0 close with the Valuer-general in Wellington on Friday 28 June. The rules are on the Land Information NZ website.

29 May 2002

Restaurant Brands NZ Ltd increased first-quarter sales (for the 12 weeks to 20 May) by 9.3% to $64.1 million. KFC sales rose 4.9% to $41.8 million, 4.5% on a same-store basis. Many KFC stores will be revamped in the next 6 months. Pizza Hut sales rose 10.5% to $17.1 million, 6.3% same-store. Starbucks Coffee sales rose 58.4% to $5.2 million, but fell 10.9% on a same-store basis, which chief executive Jim Collier attributed to cannibalisation by other Starbucks openings.

Britomart project leader Grant Kirby said today the transport interchange would still be completed on time & within budget after asbestos was found between floor & ceiling during the chief post office refurbishment by Downer Construction. Mr Kirby estimated it would take 4-6 weeks to deal with the asbestos problem and cost $1.2 million.

Brisbane-based Ariadne Australia Ltd, as an overseas issuer, has asked to be delisted from the NZ Stock Exchange from the close of business on 28 June.

28 May 2002

Newmarket Property Trust’s independent directors, Jock Irvine & Neville Darrow, will commission an independent report to consider the takeover offer from National Property Trust and expect to make their recommendation to unitholders in the week starting 17 June.

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Snapshot on local property, week to 19 October 2003

19 October 2003

Trans Tasman Properties Ltd said on Friday it had 80.23% of Australian Growth Properties Ltd, the Australian offshoot it has decided to take full control over.

Trans Tasman Properties Ltd will hold a special meeting on the takeover on Wednesday 22 October at 10am at Alexandra Park. The meeting will consider a company resolution to approve the takeover, and resolutions from Christchurch businessman John Powell to distribute the proceeds of Australian Growth’s cashing up to that company’s shareholders, and for Trans Tasman’s share of that to be distributed to its shareholders.

Auckland City Council has bought the former Team New Zealand base building at Viaduct Harbour from America’s Cup Village Ltd (an Infrastructure Auckland subsidiary) for $230,000. Infrastructure Auckland will also transfer the land it sits on to the city council next year. The base was to have been removed by 22 October. Instead, Cllr Scott Milne, chairman of the council’s recreation & events committee, said it would stay in public ownership for future events. Cllr Milne wants to establish a marine events precinct there. The council previously negotiated the transfer of Te Wero Island for public use and bought the Eastern Viaduct from Ports of Auckland in June.

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Snapshot on local property, week to 18 August 2002

15 August 2002

Commonwealth Bank of Australia subsidiary Colonial First State Property Ltd, which bought Kiwi Income Property Trust’s management company plus 9.75% of the trust in February, has reduced its stake in the trust to 8.12% through dilution as a result of the trust’s rights issue combined with onmarket sales.

Kiwi Income Property Trust has entered into an unconditional contract to sell the 6-storey Alcatel House at Maritime Square. Chief executive Angus McNaughton said the sale at $10.5 million would net around $10.3 million after selling costs, just above the $10.25 million book value and rather close to the development cost of $10.263 million in 2000. The 2714m² building opened on an 8.75% yield. Settlement is due at the end of this month.

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Snapshot on local property, week to 3 November 2002

30 October 2002

Calan Healthcare Properties Trust has 3 Hamilton facilities up for tender, closing with Bayleys on 8 November. All have a lease to Hamilton Health Management in place until 2015. The facilities are the 98-bed Rossendale and 63-bed (plus 30-bed resthome) Eventhorpe homes/hospitals and the 37-bed Phoenix rehabilitation unit. Rossendale is earning $552,640/year, Eventhorpe $508,980/year and Phoenix $221,260/year.

28 October 2002

Auckland City Council has approved a $6 million exercise to pour up to 60,000m³ of sand on Kohimarama Beach, similar to last year’s Mission Bay exercise. Creek & stormwater outfalls have been redesigned as part of the project. Engineering consultant Beca Carter Hollings & Ferner Ltd concluded in a technical report that the construction would provide a stable & much enhanced amenity. The council will now carry out detailed design and seek consents for a 3-phased programme, completing the work by December 2004.

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Snapshot on local property, week to 12 August 2001

Latest: North Shore introduces stormwater management bylaw, National Property Trust profit up 8.8%, Tasman Agriculture profit soars on revaluations and sales, Eldercare loses $7.8 million, Taradale wins consent for Manuka Rd project, sister bank finances Colonial buy.

12 August 2001

A new North Shore City Council bylaw offers the public comprehensive guidelines for stormwater management. Works & environment committee chairman Bruce Lilly said minimising the effect of stormwater flooding, erosion and environmental pollution would, in turn, have a positive effect on beachwater quality.

National Property Trust increased earnings 8.8% to $3.315 million in the year to May, on revenue up 26% to $7.2 million. Dividend distributions for the year fell from 8.2c to 7.88c, and the annualised pretax return from 9.26c/unit to 9.16c/unit. The trust increased total assets 71% to $111 million by buying the Hornby and Eastgate malls in Christchurch from Southway Properties Ltd, and increased net tangible asset backing from 93c to 98c. Debt rose to $49.95 million, or 44.6% of the fund’s gross value, just short of the 45% limit. Concept plans and a feasibility study have been completed for redevelopment of Eastgate, and major tenants have been secured. That project is subject to finance. Completing it will take the retail component of the trust’s portfolio over 50%, which chairman Paul Dallimore said should increase the rental stream and underlying asset backing.

Tasman Agriculture Ltd increased profit from $12.6 million to $59 million in the year to May. Gains on sale of assets above their revalued carrying value accounted for $34.6 million of the net surplus. Operating revenue rose 20.4% to $60 million. Core operating earnings before interest & tax rose 55% to $26.6 million on higher farm gate milk payouts in New Zealand and Tasmania, and higher Tasman beef, lamb & wool prices. Tasman Agriculture sold most of its New Zealand farms in June for $207 million, 20% above carrying book values. Four of its remaining eight New Zealand properties have been sold with August settlement for $17.75 million, 41% above May 2001 book value, and the remaining four have been sold for $12.8 million, 38% above book, with settlement in June 2002. After the 14 June distribution, control of the company switched to Dairy Holdings Ltd (Alan Pye) and Southern Capital Ltd. The company expects to focus on its Tasmanian dairy business, including selling A2 (gene-improved) milk as a value-added product. Directors say another distribution to shareholders is likely.

Eldercare NZ Ltd made a pretax operating loss of $296,000 in the year to May compared to a $5.77 million profit the previous year, and went from the same level of profit after tax to a $7.8 million bottomline loss, after a change in direction. Chief executive Alan Clarke said revenue from core operations rose 69% to $34.1 million, core earnings before interest & tax 36% to $3.4 million. Since it announced the change last year, Eldercare’s restructuring and asset sales have yielded $8 million, with another $6 million to come. He said debt had been cut from $49.3 million to $41.2 million.

6 August 2001

Taradale Properties Ltd (Tim Manning) has won resource consent for a comprehensive housing development at the foot of Manuka Rd, Glenfield, with an agreed reduction in unit numbers from 45 to 39.

Colonial First State Property Trust added to its statement about buying the Millennium Centre on Great South Rd, Greenlane, from Manson Developments Ltd with some finance details on Friday night. The transaction cost $46.2 million, which Colonial said was financed through a $42.6 million revolving credit facility from ASB Ltd and secured by a first mortgage. ASB, like Colonial, is controlled by Commonwealth Bank of Australia. Colonial First State Property Management NZ Ltd, the trust manager, said the loan was at arm’s length and was granted a stock exchange waiver.

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Snapshot on local property, week to 18 January 2004

17 January 2004

London-based Welshman John Wilson will retire as chairman of Millennium & Copthorne Hotels plc on 1 March, also bringing to an end his 4½ years as chairman of the 3 New Zealand-listed companies in the Hong Leong Singapore group which fall under the M&C wing — CDL Hotels NZ Ltd, CDL Investments NZ Ltd and Kingsgate International Corp Ltd. His successor has not been named.

Trans Tasman Properties Ltd has completed the takeover of its Australian offshoot, Australian Growth Properties Ltd, which has been removed from the Australian Stock Exchange list and is now a wholly owned subsidiary of Trans Tasman.

12 January 2004

Sky City Leisure Ltd (the former Force Corp Ltd) subsidiary SkyCity Cinemas has agreed to buy the Cinema City 5 multiplex in Whangarei for $2 million from locally owned business Cinema City Ltd (Alan Kerr & William Lovell). Settlement is scheduled for early February. Sky City Cinemas also operates 84 cinema screens throughout New Zealand in joint venture partnerships with Village Roadshow, Hoyts Cinemas and Rialto Entertainment.

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Snapshot on local property, week to 17 December 2000

Latest: Bryers seeks debt compromise, Dairy Brands sells 2, Restaurant Brand sales up.

14 December 2000

Short-term apartment converter and developer Mark Bryers, whose string of companies collapsed midyear, has filed a proposal for a debt compromise under part XV of the Insolvency Act. His creditors’ meeting, organised by provisional trustee Geoff Hamilton, will be held at the Institute of Chartered Accountants in Remuera on Friday 22 December. He was turning the MLC building at 380 Queen St into apartments when the rout began. That building subsequently turned into a Scenic Circle hotel, called the Airedale, which opened last month. He also planned an apartment management group, Regal Hotels, which went into liquidation along with the others although he was no longer directing it.

12 December 2000

Dairy Brands NZ Ltd has sold two properties, Murrayfields at Culverden and Pukeuri in North Otago,for $5.4 million. The company will seek shareholder approval early next year to sell its remaining 12 farms.

Restaurant Brands NZ Ltd raised sales in the 13 weeks to 4 December by 13.1% to $60.7 million, and total sales for the year by 6.7% to $234.1 million. Non-KFC sales increased 62.3%, rising from 21% to 30% of sales. After incorporating Eagle Boys quickly into the Pizza Hut business, it now has 60 declos (takeaway and delivery outlets) and 22 restaurants.

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