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The week in New Zealand real estate - 18 December 2020

The week in New Zealand real estate  18 December 2020

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

Chris Farhi Vlog

Institutional investors

  • Ryman Healthcare announced it will be repaying the $14.2M wage subsidy it received during the pandemic. More info here.
  • Summerset Group is also repaying the $8.4M wage subsidy that they received. Their underlying profit is now down only 6%. More info here.

Office

  • Argosy Property received a $47.5M insurance payout for the former NZ Post House in Wellington for damage due to the Kaikoura earthquake. The company had originally claimed $65.8M. More info here.
  • Contact Energy is reducing its head office space and subleasing 5,000 sqm of its Wellington office. The company says it is committed to a flexible workplace and is reducing to just one floor in the building. More info here.
  • Dunedin’s Dowling Street car park building will be demolished to make way for ACC’s new office building. The 8,000 sqm building will be a joint venture between ACC and Ngāi Tahu Property. More info here.

Industrial

  • Colliers International’s latest industrial vacancy survey has found industrial vacancy in Auckland to be 2.1% in the six months to September 2020, up from the record low of 1.4% in March 2020. More info here.
  • The Jasper Industrial Income Plus Fund has been over-subscribed with $15.2M in equity raised. The fund is targeting a 6% return. More info here.
  • Stride Property’s Industre Property Fund has purchased the NZME printing and distribution centre on Wilkinson Road, Ellerslie. The $54M deal takes Industre's portfolio value to $553M. More info here.
  • Meridian Energy is backing a plan for a $700M Datagrid data centre development in Southland. The development will have two subsea cables and US tech giants could use the facility to serve local and Australian clients. More info here.

Residential

  • The Salvation Army has asked the Reserve Bank to make it easier for banks to provide lending to non-traditional residential assets such as build-to-rent and co-ownership assets. More info here.
  • ANZ has announced they will be imposing a 40% loan-to-value ratio on residential property investors. The Reserve Bank is reviewing reintroduction of a 30% ratio next year. More info here.
  • Auckland Council has approved consents for 10-storey tower blocks at the former University of Auckland Tamaki Campus. The development by Shundigroup NZ includes 1,500 apartments and some office space. More info here.

Government

  • The government has started consultation on updates to NZS3910, the model form of construction contract used for projects in New Zealand. Standards NZ has released a short web survey to gather feedback from the construction sector. The survey closes 14 February 2021. More info here.
  • New Plymouth City Council’s downtown car park will be closed indefinitely because due to seismic risks. The building's seismic strength has been assessed between 20% to 34% of new building standard. 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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