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The week in New Zealand real estate - 15 January 2021

The week in New Zealand real estate  15 January 2021

A weekly update of the biggest real estate news from around New Zealand.

Institutional investors

  • Summerset Group has reported record sales for the last quarter of 2020. The group had 176 sales of new occupation rights and 120 resales, up 42% on the same period the prior year. More info here.

Industrial

  • Oyster’s Industrial Fund will be reopened after launching in October 2019 with the acquisition of three new properties. The fund is forecasting a pre-tax cash return of 5.25%. More info here.
  • Property For Industry announced a $54.4M deal with Aintree Group to develop and sell a new warehouse on Tidal Road, Mangere has lapsed. The deal was cancelled after sunset dates were hit due to the pandemic and lockdowns. More info here.
  • Tiwai Point aluminium smelter in Southland will remain open until the end of 2024 after a deal was reached with Meridian Energy. The time will be used to plan for the future of the site. More info here.
  • The country's first plant-based milk factory will be built in Southland. The factory is a result of a project to diversify uses for land in Southland. More info here.

Retail

  • Starbucks has revamped its flagship Queen Street café and announced three new café openings in the second half of 2021. The chain had 50 cafes in New Zealand at its peak. It currently has 24. More info here.
  • The owners of Auckland’s Grasshopper Bar and Restaurant are being taken to court by former landlord Stamford Plaza for rental arrears after leaving their lease six months early. The owners claim trade plummeted due to the hotel becoming a MIQ facility. More info here.

Hotels

  • The Hotel Data New Zealand Survey has shown overall hotel room income fell by 40% in 2020, inclusive of MIQ contracts. Average occupancy was 50%, down from 80% in 2016. More info here.

Residential

  • $60.8B was spent on residential property in the 11 months to November 2020, up 24.7% on the same period the prior year. Auckland increased 40.8% over the same period and made up almost half of national sales. More info here.

 Government

  • The Government is spending $30M to buy Fletcher's land at Ihumātao. More info here.
  • Councillors have approved preparing Bledisloe House for sale, subject to public consultation. The building had been used as one of the council's offices spaces. Remote working trends have enabled the council to rethink its workspaces. More info here.
  • Taupō District Council has sold the 3,600 sqm lakefront site of its former headquarters. The buildings had been demolished due to safety issues. The site will be developed into a hotel. More info here.

Related Experts

Chris Farhi

Director | Strategic Advisory

Auckland CBD

Chris is a Director within the Strategic Advisory team. The team helps you with your big property decisions and complex transactions.

Chris' advisory work focuses on:

  • Decision making processes (eg property strategy, business cases, feasibilities, etc)
  • Tenant representation for large lease transactions (office,  industrial and specialist-use)
  • Multi-site networks (eg consolidation strategies, optimisation, etc)

Chris’ background in brief:

  • Property strategy advisor for some of New Zealand’s most successful private sector, public sector and non-for-profit organisations.
  • Tenant representative (tenant-paid lease negotiator) for organisations ranging from small-to-medium enterprises through to major listed companies and government agencies.
  • Specialist skills in commercial leasing, financial analysis and market research.
  • Part-time lecturer at the University of Auckland Business School and commercial leasing trainer for the Royal Institution of Chartered Surveyors.

Chris’ qualifications include Honours degrees in both Civil Engineering and Property from the University of Auckland, and a Master of Philosophy from the University of Cambridge, UK. He is a Chartered Member of the Royal Institution of Chartered Surveyors.

Outside of work, Chris is a combat engineer in the NZ Army Reserve and a keen baker.

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