Archive | Parking

Apartment sells with added package of parking spaces

A unit in the Aura apartment building – with the added investment value of 5 parking spaces – was sold at Bayleys’ auction today.

The apartment building is on the upper western fringe of Auckland’s cbd. The parking spaces can’t be sold to a non-apartment owner.

A second apartment, in the Wakefield just off Queen St, was passed in.

CBD

Learning Quarter

Wakefield Apartments, 18 Wakefield St, unit 7F:
Features: one bedroom
Outgoings: body corp levy $2895/year
Outcome: passed in at $430,000
Agent: Cindy Ji

Victoria Quarter

Aura, 53 Cook St, unit 616:
Features: 36m², furnished 2-bedroom apartment, 5 parking spaces
Outgoings: body corp levy $7241/year
Outcome: sold for $570,000
Agents: Chris Bell & Lucy Piatov

Attribution: Auction.

Continue Reading

Melbourne developer buys Federal St carpark

SkyCity Entertainment Group Ltd has signed an unconditional agreement to sell the Federal St carpark in downtown Auckland to ICD Property Investment Ltd (Michael Mai, Melbourne) for $40 million.

The 427-space carpark is on SkyCity’s books at $22 million.

It’s on the corner of Kingston St, half a block from SkyCity’s casino, hotel & hospitality precinct.

SkyCity said ICD was selected as preferred buyer after a tender managed by Colliers and signed a conditional agreement in late April. It will pay a 10% deposit, with settlement in 12 months.

SkyCity said in a release: “The sale of the Federal St carpark is consistent with SkyCity’s intention to move to an ‘asset-lighter’ strategy, which includes looking to divest non-core assets & businesses.

“The proceeds of the sale will be used initially to pay down debt and then fund future growth opportunities as they arise. The carpark is currently occupied by SkyCity staff that will be moved to the NZ International Convention Centre carpark when the first 600-space tranche is completed. Following this, SkyCity intends to operate the Federal St carpark for casual visitors & leaseholders through to settlement of the transaction with ICD.”

Attribution: Company release.

Continue Reading

Oyster fund gets AA FundSource rating

NZX Ltd-owned research & rating agency FundSource Ltd has given Oyster Property Group Ltd’s Direct Property Fund an AA rating – the first for an unlisted direct property fund in New Zealand.

Mark Schiele.

Oyster chief executive Mark Schiele said yesterday: “This puts the Oyster Direct Property Fund in the top 5% of 64 funds currently rated by the research house. We view this as solid independent confirmation of the fund’s structure & performance. It should be very helpful for investors when assessing their investment options.”

Oyster launched the unlisted PIE-structured unit trust in 2016 to hold a diversified commercial property investment portfolio, giving investors an affordable way of investing in the commercial property market.

Mr Schiele said the fund had a value of about $40 million after doubling in size in the last 18 months.

“The fund provides investors with diversified exposure to about $500 million in quality commercial property throughout New Zealand, monthly cash distributions or the ability to reinvest, and the potential for capital growth.”

The minimum investment into the fund is $10,000. Since it was launched, it’s paid investors a distribution equivalent to 7c/unit/year. The initial unit price was $1.00 and at 31 January it was $1.037.

Links:
Oyster Group
FundSource report

Attribution: Company release.

Continue Reading

Paid parking zone proposed for Albany town centre

Auckland Transport said on Friday it was considering introducing a paid parking zone for the Albany town centre, with the intention of freeing more spaces for short-term visits.

The proposal includes a charge of $1/hour, Monday-Friday 8am-6pm, with no time limit. Existing loading zones & mobility parking wouldn’t be affected.

The proposal applies to all on-street parking in the town centre area, bounded by Oteha Valley Rd, the Albany Expressway and State Highway 1. It excludes privately owned parking such as staff & Westfield mall parking, the Albany park-&-ride and Hooton Reserve parking.

The public consultation period will close on Sunday 28 May, and the analysis of the feedback & decisions made will be available by August.

Auckland Transport parking services manager John Strawbridge said if the decision is made to proceed with the proposal, it will be implemented by the end of 2017.

He commented: “With the amount of development planned for Albany over the next few years, parking in this area needs urgent management. This proposal not only manages the current parking, which is almost at capacity, it puts in a system for the future needs of the area.

“The plan improves parking availability and encourages alternatives like carpooling. It will help solve current issues with illegal & poor parking in the area.”

Mr Strawbridge said Auckland Transport also had a new app for iPhone & Android, AT Park, which means you can pay for parking without coins.

Links:
Albany paid parking information & feedback form
http://at.govt.nz/haveyoursay
Parking app
http://at.govt.nz/atpark

Attribution: Auckland Transport release.

Continue Reading

Gouging, but no improvement in service, for Australian airport parking

One headline read ‘ACCC slams airport parking gouge’, but the annual airport monitoring report by the Australian Competition & Consumer Commission reads more like an ‘Okay, they’re gouging’ coupled with a wallop from a bedraggled bus ticket.

The commission’s own release headline read ‘Lack of competitive pressure facilitates high profit margins at airports’ – indication enough that they’re gouging, but the commission has no power to act.

The Australian Government has directed the commission to monitor the performance of the 4 largest airports until 2020, but this monitoring role doesn’t involve direct regulation of monitored airports or any power to intervene in the airports’ setting of terms & conditions of access to their infrastructure.

The commission said in its release last week the 4 monitored airports – Brisbane, Melbourne, Perth & Sydney – “continue to enjoy high profit margins in both aeronautical & car parking activities”.

They’re the only suppliers of parking on airport grounds and, for every dollar of parking revenue, their profits ranged from a low of A63.7c for Perth Airport to A73.2c for Melbourne Airport.

The profit earned from a dollar of aeronautical revenue ranged from a low of A40.2c in Perth to a high of A50.1c in Sydney, which was the highest aeronautical services return in 11 years of monitoring.

The return on assets ranged from a low of 6.2% for Brisbane to a high of 12.4% for Sydney. The other 2 airports reported declines in this measure, but the commission noted that return on asset figures can be affected by asset revaluations.

Commission chair Rod Sims said: “The high profit margins of the airports indicate that they do not face much competitive pressure. However, savvy motorists are increasingly taking advantage of the discount rates available by booking car parking online. The discounts available may be a form of price discrimination, as price-conscious consumers will book ahead to receive discounts online while less price-sensitive consumers will pay higher drive-up prices.

“The commission found that consumers parking at the airports could save up to 66.5% for longer durations by booking online. Consumers should consider all of their options, including whether they could obtain a cheaper rate by booking online or using an off-airport parking operator.”

Despite the high profit margins, Mr Sims said the quality of service hadn’t been increasing over the years. Brisbane Airport came out best, the commission found Brisbane & Perth provided a ‘good’ quality of service, but Melbourne & Sydney managed only a ‘satisfactory’ in surveys of airlines & passengers and objective indicators.

However, the commission said quality of service might improve in the future on the back of record levels of investment in aeronautical assets in 2014-15 – $A484 million including a new domestic terminal in Melbourne, $A334 million including a new runway in Brisbane, $A250 million including a new international terminal & domestic pier in Perth.

“Although airport investment tends to be lumpy in nature, the record levels of investment made by Melbourne, Brisbane & Perth in 2014-15 will possibly drive welcome service improvements for passengers,” Mr Sims said.

“There is also some optimism regarding better quality of service at Sydney Airport, which agreed to a formalised service level agreement with international airlines.”

The commission took a closer looked at the impact of airport rail links, but found they didn’t appear to provide a strong constraint on airports’ parking pricing. Instead, they competed more closely with other modes of transport such as taxis & other public transport services. Brisbane & Sydney Airports have rail links and one is under construction in Perth.

The commission said the government had missed an opportunity to create more competition in Sydney when it confirmed its intention to develop the Badgerys Creek airport in the outer west in 2014. In the privatisation process, the government gave the acquirer of Sydney (Kingsford Smith) Airport the right of first refusal to develop & operate any second airport within 100km of the central business district.

Link: Airport monitoring report 2014-15

Attribution: Commission release.

Continue Reading

Auckland home values rise 22.5% in year, but only 0.2% in December

Quotable Value Ltd said today Auckland home values rose by an average 22.5% ($171,406) in 2015, from $761,858 to $933,264.

Nationally, the rise was 14.2% ($69,472) from $488,674 to $558,146.

Auckland values rose 4.1% over the last quarter, but only 0.2% in December. The rise since the previous peak in 2007 was 70.8%.

The national value gain for the quarter was 2.9%, and 34.7% since 2007.

Sales volumes were up on 2014 for much of the year, with the exception of January, reversing the trend of historically low levels seen since the global financial crisis. Top month for sales was March, at over 10,000.

QV national spokesperson Andrea Rush said today: “Massive increases in Auckland home values during the first 9 months of 2015, at a rate not seen since the early 1990s, led the Government & the Reserve Bank to announce mid-year that they would introduce measures to curb Auckland investors.

“These huge hikes in home values, and pending restrictions on investors, saw many look to move or invest outside of the Auckland region for more affordable homes or better rental yields during 2015.”

Aucklanders’ influence

CoreLogic NZ Ltd, in which Government-owned Quotable Value has a 40% stake and RP Data NZ Ltd holds 60%, produced buyer classification analysis and more detail on Aucklanders’ influence outside their home territory.

It said the most active group of buyers, particularly in Auckland, owned multiple properties – mostly investors. Their share of sales increased from 35% in 2013 to a peak of 40% in the second half of 2015.

First-homebuyers returned to the market. CoreLogic research director Jonno Ingerson said the loan:value ratio speed limits the Reserve Bank put in place in October 2013, to limit banks’ lending to customers with low deposits, had the effect of decreasing the first-homebuyer share of sales in Auckland from 23% in mid-2013 to 19% by mid-2014.

“Now first-homebuyers are finding ways back into the market, either by saving for a larger deposit or lowering their price expectations. As a result the share of first-homebuyer sales is now back to 23% and climbing. The story is similar outside Auckland.

“Another clear trend in the types of buyers active in various markets was the spread of Auckland people & money to the surrounding areas. From the buyer classification analysis we can see people’s movement patterns. During 2015 there was an increase in Aucklanders moving to Hamilton, Tauranga & the Waikato district.”

In Hamilton, 22% of the sales to movers in 2015 were to those who’d just moved from Auckland, up from 13% in 2014.

In Tauranga, this movement of Aucklanders had been increasing steadily since 2012, when they accounted for just 12% of movers. By the end of last year Aucklanders made up 30% of this category.

“The Waikato district, which stretches from the southern boundary of Auckland south to Hamilton City, has been a popular part of the country for Aucklanders to move to. With improved state highways it is possible for these people to still work in Auckland but to live somewhere much cheaper. Since 2009, the percentage of movers to the Waikato district being from Auckland has climbed from 20% to 46% in 2015.”

Mr Ingerson said Aucklanders weren’t just cashing up & moving out, more of them were also investing elsewhere, chasing better rental yields & more affordable properties.

“In 2014, 6% of all purchases in Hamilton were by investors who already had properties elsewhere in the country and were buying a Hamilton investment property for the first time. The vast majority of these were Auckland investors starting up in the Hamilton market. In 2015 this increased to 14% of all sales in Hamilton.

“Likewise in Tauranga, where 10% of 2014 sales were to investors buying in Tauranga for the first time, this increased to 13% at the end of 2015.

“There has been anecdotal evidence of Auckland investors being increasingly active in Wellington, but there is little evidence in the data to support that currently.”

Forecast for Auckland

Mr Ingerson said the outlook for Auckland residential was a short-term drop in values, but for upward pressure to kick in: “With the various Government & Reserve Bank restrictions now beginning to take effect, and foreign buyers apparently much less active, our expectations are that Auckland values will drop a few percent over the next few months.

“However, mortgage interest rates are at historic lows, migration at historic highs, and there is a substantial shortage of housing in Auckland. These are strong factors putting upward pressure on Auckland prices and, as a result, any drop in values is likely to be shallow & short-lived.

“While Auckland may take a breather, the surrounding areas are likely to continue to rise, driven both by local demand and by Aucklanders choosing to move to more affordable locations.

However, the value growth we saw in Hamilton in late 2015 of more than 10%/quarter will not continue, instead settling back to a more moderate rate of value increase. Most of the top half of the North Island will continue to increase likewise.

“It will be a more variable outlook further south, where the effect of Auckland is far less. Wellington values have been accelerating for the past few months, and that will continue in a market where current demand is outstripping supply. Dunedin will also continue to increase, while Christchurch is more likely to stay flat.”

Around Auckland on the old council boundaries, plus Kaipara and the national, Wellington & Christchurch figures, showing the average current value, changes over 3 months & 12 months, and the change since the 2007 market peak:

Kaipara, $365,763, 2.2%, 7.7%, -7.8%
Rodney, $815,353, 6.6%, 18.8%, 39.0%
North, $828,212, 6.8%, 19.6%, 37.9%
Hibiscus Coast, $804,163, 6.5%, 18.0%,   36.9%
North Shore, $1,089,745, 3.6%, 22.0%, 68.9%
Coastal, $1,244,765, 3.2%, 22.4%, 65.2%
Onewa, $878,235, 2.5%, 20.8%,   77.1%
North Harbour, $1,053,882, 5.6%, 22.5%, 73.4%
Waitakere, $748,011, 3.8%, 25.6%, 76.4%
Auckland City, $1,095,838, 3.7%, 20.7%, 76.0%
Central, $950,815, 4.0%, 20.4%, 67.0%
East, $1,373,235, 4.8%, 20.7%, 72.3%
South, $991,153, 2.2%, 21.0%, 84.1%
Islands, $906,239, 2.6%, 18.0%, 41.8%
Manukau, $796,027, 4.4%, 26.3%, 73.9%
East, $1,021,890, 4.5%, 23.8%, 71.5%
Central, $619,257, 3.9%, 29.3%, 64.7%
North-west, $677,480, 4.8%, 28.0%, 83.4%
Papakura, $601,717, 5.7%, 29.9%, 67.3%
Franklin, $580,110, 4.7%, 20.0%, 46.7%
Auckland region, $933,264, 4.1%, 22.5%, 70.8%
Wellington region, $476,634, 4.5%, 5.1%, 4.6%
Christchurch, $482,043, 1.5%, 2.6%, 27.1%
Total NZ, $558,146, 2.9%, 14.2% , 34.7%

Attribution: QV release.

Continue Reading

Commission publishes preliminary issues on parking takeover

The Commerce Commission published a statement of preliminary issues yesterday relating to Wilson Parking NZ Ltd’s application to acquire leases for 10 carparks from Tournament Parking Ltd. They’re mostly standard, though some are elastic through interdependent variable factors.

Wilson Parking applied for clearance on 14 August. The commission said yesterday submissions on the application would close on Tuesday 8 September and it aimed to make its decision by 8 October, although that date might change as its investigation progressed.

Wilson Parking, owned by Raymond Kwok & family of Hong Kong, is New Zealand’s largest public parking provider, operating 270 parking facilities nationwide containing 30,000 parking spaces. The Wilson Group operates parking sites throughout Australia & Asia.

Tournament (James Brown & Simon Rowntree) operates 13 carparks in Auckland & Wellington after selling most of its other parking operations to Wilson Parking in 2013.

The commission investigated whether the 2013 acquisition substantially lessened competition, and said the evidence didn’t support a conclusion that it substantially lessened competition.

Companies related to Tournament own 9 of the sites and the tenth is independently owned. Wilson isn’t seeking to buy the sites or buildings.

The Auckland sites are at 81 Airedale St, 17-19 Nelson St, 459B Khyber Pass Rd & 9–13 Kent St in Newmarket, 16 St Benedict’s St and 6 West St off Upper Queen St

Among the issues the commission has highlighted:

“We will consider whether there are any restrictions on competing carparks that would prevent carpark operators from quickly & easily switching between different parking products. We will also consider whether private carparks place competitive constraints on public carparks.

“Wilson Parking submits that the relevant markets are comprised of overlapping zones of substitution affecting Auckland Central, Newmarket & Wellington Central. Our analysis of Wilson Parking’s 2013 acquisition noted that this approach was inconsistent with observed price variations across Auckland’s central business district. We will assess the geographic markets relevant to this acquisition, including whether they are narrower than those identified by Wilson Parking.

“Our investigation will focus on the closeness of competition between Wilson Parking’s carparks, the carparks to be acquired & other competitors. In particular, we will consider whether competing carparks possess sufficient spare capacity to absorb additional customers, were they to switch away from Wilson Parking’s parking operations.

“We will also consider the impact of onstreet parking, public transport & landlords on constraining Wilson Parking’s ability to raise prices above the existing levels or reduce the quality of its services.

“We will consider whether the typical lease structure disincentives aggressive pricing policies by placing the majority of the revenue risk on the operator rather than on the landlord.

“We will consider whether the transaction increases the potential for Wilson Parking & its competitors to co-ordinate their behaviour and collectively exercise market power, such that prices increase across the relevant markets. Specifically, we will consider whether there are features of these markets that may facilitate co-ordinated conduct, and whether the acquisition would enhance these features.

“We will assess whether entry by new competitors or expansion by existing competitors is likely, of sufficient extent and would occur in a sufficiently timely fashion to prevent a substantial lessening of competition.

“Of particular consideration will be whether being an incumbent leaseholder provides a competitive advantage such that entry or expansion, by way of successfully bidding for a lease, is unlikely to constrain any increase in market power by the merged entity.

“We will also assess entry through the creation of new carparks, giving consideration to the likelihood, extent & timeliness of entry in this form.”

Link: Clearance Register, Wilson application

Earlier story:
17 August 2015, Wilson Parking seeks clearance to buy more of Tournament

Attribution: Commission release & register.

Continue Reading

Off-Queen St parking passed in

Published 7 June 2012

6 freehold parking spaces in the building at 155 Queen St, on the corner of Wyndham St in the cbd, were passed in at a Barfoot & Thompson auction yesterday.

 

Queen St valley

 

155 Queen St, 6 parking spaces on carpark levels 2 & 4:

Features: offered as one lot of 6 or in 2 parcels of 3, 

Outgoings: body corp levy $4989/year plus gst for all 6

Outcome: The parcel of 6 spaces was passed in, then passed in again when split in 2

Agents: Bill Carlson & Chloe Boerema.

Want to comment? Go to the forum.

 

Attribution: Auction, story written by Bob Dey for the Bob Dey Property Report.

Continue Reading

One parking space sold, another passed in

Published 30 June 2011

One Farmers carpark space was sold and another passed in auction at Ray White City Apartments today. The prices were similar, taking into account the different gst treatment for each.

The covered spaces up for sale were units 3BR & 20, each with rates & body corporate levy totalling $1162/year. Unit 20 was sold for $29,000 (gst inclusive) and unit 3BR was passed in at $26,000 + gst (which adds $3900).

2 other spaces in the Farmers parking building were sold for $29,000 on 2 June at Ray White City Apartments’ auction.

Want to comment? Go to the forum.

 

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

Continue Reading

Interparking grows European portfolio

Published 6 January 2010

Interparking Group, a 90%-owned subsidiary of Brussels-based Fortis Real Estate SA, has acquired the Spanish carpark company Metropark from the Metrovacesa Group for more than €100 million, subject to approval by competition authorities.

 

Metropark operates in 3 cities and has 4 hospital carparks containing 4450 spaces on very long-term contracts. The acquisition will take Interparking Hispania’s portfolio to 18,500 spaces in 52 carparks in 42 cities, and its total portfolio to 560 facilities in 7 European countries.

 

Want to comment? Go to the forum.

                                                                                              

Attribution: Company release, story written by Bob Dey for the Bob Dey Property Report.

Continue Reading