The week in New Zealand real estate – 19 November 2020

The week in New Zealand real estate  19 November 2020

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

Institutional investors

  • Investore Property has reported a half-year profit of $91M. Their portfolio increased in value by 9.4% to $980.3M over the period. More info here.
  • Summerset has received Environment Court approval for its $150M retirement village development in Boulcott, Lower Hutt. The village will be home to more than 300 residents when complete. More info here.
  • Ngāi Tahu Holdings reported a $25.6M net loss due to the pandemic. Its property arm, Ngāi Tahu Property, made a $29.9M operating surplus over the same period, the biggest profit in their portfolio. More info here.

Office

  • 151 Property has added beehives to the roof of the Air New Zealand building in Wynyard Quarter, Auckland. The hives will house 250,000 bees as part of their commitment to environmental sustainability. More info here.
  • Precinct Properties has reported ‘no material reduction’ in demand for office space across their portfolio due to the pandemic and remote working trends. 2.5% of its occupiers were looking to sublease space. More info here.

Industrial

  • Waste Management’s new Auckland headquarters won three awards at the 2020 Property Council Awards. The Supreme Award, Green Building Award and Industrial Property Award were all given to the 9,100 sqm facility owned and developed by Stride Property. More info here.
  • Cavalier Corporation has cancelled the $24.6M sale of its Auckland factory to Kinleith Land and Infrastructure. Kinleith failed to pay the deposit on the deal. A new deal has been entered into with a new party. More info here.

Retail

  • Kings Plant Barn will be the anchor tenant of the new retail centre being developed on Lunn Avenue in Mount Wellington, Auckland. Kitchen Things will also be operating from the property which is due to complete in 2021. More info here.

Hotels

  • The 150-room QT Auckland has opened in the Viaduct Harbour. It is the third QT hotel in New Zealand and features the signature quirk and eccentricity of the other locations. More info here.
  • Two new hotels will be opened under Wyndham’s TRYP brand for the first time in New Zealand. A 76-room hotel in Wellington and a 212-room hotel in Remarkables Park will be developed by Safari Group and open in 2022 and 2023. More info here.

Residential

  • CoreLogic data shows that first home buyers have a 24% share of the market, up from a peak of 23% ten years ago. More info here.
  • In the 12 months to September, more than 16,000 new homes achieved code compliance in Auckland. Code compliance numbers for the past quarter were up 47% on the same period last year. More info here.
  • The Horowhenua District Council is consulting on a plan change to allow 2,500 new dwellings in Levin. Rezoning the rural land would allow the town to grow by a quarter. More info here.

Government

  • The Government announced it will be spending $164M on upgrading and adding classrooms to schools nationwide. More info here.
  • Wellington City Council is considering selling the city's new Convention Centre when complete in 2021/22. The sale would enable a smaller increase in rates. 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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