The week in New Zealand real estate - 23 October 2020

The week in New Zealand real estate  23 October 2020  hero

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

On the Vlog

Institutional investors

  • The High Court has issued an order approving Swedish EQT's purchase of 100% of Metlifecare's shares for $1.3B. Trading of shares will be suspended on 23 October at the close of trading. More info here.

Office

  • Colliers partnered with CoreNet's New Zealand chapter during October to present "Mythbusting the Office Market". A summary of the audience polls is now available in CoreNet's library. More info here (registration is needed but is easy to do)
  • Willis Bond have developed 7,000 sqm of office and retail space in the historic Farmers Department store on Wellington’s Cuba Street. $60M was spent on redevelopment after the building was given an NBS rating of less than 5%. Greater Wellington Regional Council will occupy the office space. More info here.

Industrial

  • Infratil has revealed details for two cloud computing data centres under construction in Silverdale and Hobsonville. Initial investment exceeds $300M. They will initially supply more than 20MW of power when they go live in 2022. More info here.

Retail

  • Flight Centre has announced it will be closing a further 23 stores due to the impact of COVID19. The company closed 70 stores earlier this year. More info here.
  • Tahua Partners, the owner of the Starbucks franchise in New Zealand, will be purchasing the Burger King franchise after it was placed into receivership. Burger King has 78 restaurants across New Zealand. More info here.
  • A restaurant in Auckland’s Elliot Stables is being liquidated after falling behind on rent due to the pandemic. More info here.

Residential

  • Alan McMahon from our published his latest global build-to-rent round up. More info here.
  • Rents for Auckland Central apartments dropped by $60 a week over the past four months. Tenancy Services data shows a drop from $520 in May 2020 to $460 a week in September 2020. More info here.
  • Mary Potter Hospice is developing a $19M build-to-rent apartment building in Wellington. The 41 units are being constructed using prefabrication. More info here.

Government

  • The City Rail Link's $13.5M tunnel-boring machine has arrived in the country. The machine, named Dame Whina Cooper, will begin tunnelling next year. More info here.
  • Auckland Council has renewed a commitment to allow for a marae to be established on the Harbourview-Orangihina Park in Te Atatū Peninsula. More info here.
  • The Waipā District Council is considering setting up a charitable trust to manage and fund the redevelopment of the Cambridge Town Hall. The building was originally constructed in 1909. The council had set aside $3.8M for the work but this is unlikely to be enough. More info here.
  • The cost to redevelop Wellington’s Municipal Office Building for a national music centre has doubled to $84M due to the cost of seismic strengthening. More info here.
  • Wilson Parking has agreed to sell three of its Wellington carpark building leases after being investigated by the Commerce Commission for anti-competitive behaviour. More info here.
  • 70 ha of Crown-owned red zone land in Christchurch and the historic Bill Sutton House will be transferred to Christchurch City Council. The house has been restored by LINZ on behalf of the Crown. 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.

View expert

William Silk

Analyst | Stategic Advisory

Auckland CBD

William joined the Strategic Advisory team as an Analyst  in the Auckland CBD office in 2019, after completing studies at The University of Auckland. 

Specialising in reseasrch, reporting and analysis to support strategic commercial proprety decision making. 

View expert