August 2015
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Blowing in the wind Page 4
Apartment developments take off Chris Hutching New apartment developments in Auckland are selling off the plans. A new apartment building in Mt Eden called Botanica has sold out within six weeks of launching. And a new development was unveiled this week for 438 Queen St on the Real Groovy site. More apartments are being sold in Auckland off-the-plans than for several years. There were 847 apartment sales sold in the first quarter of 2015, which is higher than the number of existing apartment sales in the same period.
Countdown supermarkets up for sale
The momentum has been rising steadily since 2013. Between August and October 2013 more than 1000 apartments were offered to the market and the majority were sold in following months. Sales were constrained in the early part of 2014 but have risen since then as several large projects have been launched and marketed. About 5700 new apartments are expected to be developed across the city’s fringe and suburbs by 2018, according to latest CBRE research. The developer of the 438 Queen St property is Conrad Properties which is one of the city’s most active apartment developers The building will be called Queens Square and
include 226 freehold strata title residences and nine shops on the ground floor. Real Groovy has been on site since 1991 and remains in its premises until January 2016 when it will seek new premises somewhere in the neighbourhood. Interests associated with the Webster family have owned the site for several decades. A sale recorded in 1991 was for $60,000. The property currently has a rating value of $6.7 million. Conrad Properties has a conditional agreement to buy it. Meanwhile, developer Residentiae has sold the 67 units in the Botanica development in Mt Eden. Residentiae is a joint venture of McDougall
Reidy and Haydn & Rollett which is setting up a residential arm to complement its industrial and commercial activities – another indication that more apartment buildings are likely to be developed in the near term than more office towers as the sector digests new commercial developments on the Auckland waterfront. Purchasers for Botanica include owner occupiers, first home buyers, investors and downsizers who all found something within the development, Colliers International says. Botanica’s Mt Eden location has Special Housing Area status for the site meaning that consent approvals are expected within shorter timeframes. The site was formerly an industrial property.
The
Chris Hutching One of the single biggest commercial property portfolios on the market for sale currently is comprised of 19 Countdown supermarket properties. Last year the supermarkets provided $18.9 million in rental income last year for their United Kingdom-owners. The Countdown supermarkets are owned by Antipodean Supermarkets, which was incorporated in 2006, and is a subsidiary of London-based William Pears Group and its joint partner, Jonny Berman. Individual property rent-rolls for the premises range from approximately $430,000 to $1.7 million. Most of the premises have 20 year leases and are being marketed for sale by an international private treaty sale process by Colliers International and JLL. The properties include six in Auckland, five in Wellington and three in Christchurch with the balance in regional areas gleaning turnover of about $800 million. The largest of the six Auckland based stores (by income) is the Countdown Greenlane property.
INSIDE
Workplace bragging rights up for grabs.... New Zealand’s largest cycle event, the Contact Lake Taupo Cycle Challenge, is adding something new to its repertoire this year with the introduction of the ‘No Name’ Workplace Challenge. Event director Kay Brake says the new addition - so called because whoever wins will earn the naming rights for the 2016 Workplace Challenge - is responding to
Trans Tasman bounces back - PAGE 2
Chatham Rock stays confident - PAGE 2
the increasing amount of talk around encouraging healthy work places, activities, and social commitment. “The ‘No Name’ Workplace Challenge ticks the boxes in this space and will help get you, your team, and your work colleagues up and pedalling, both on and off the clock,” she says. See story page 6
Planning for emergencies - PAGE 3
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