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The week in New Zealand real estate - 26 March 2021

The week in New Zealand real estate  26 March 2021

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

Chris Farhi Vlog 

Institutional Investors 

  • Oceania Healthcare is planning to raise $100M to fund upcoming acquisitions in Auckland. The acquisitions include purchasing the Waterford retirement village in Hobsonville and 6.1 ha of land in Franklin. These purchases will add an extra 275 units and care suites. More info here. 
  • Oyster Property Group have established the Oyster Large Format Retail Fund. Investors can purchase one or more of the 1,045 parcels on offer. The Albany Lifestyle Centre in Auckland has been selected as the fund’s initial asset. The fund will have a focus on properties that are anchored by essential service stores, supermarkets, and hardware stores. More info here. 

Industrial 

  • Staff have now moved into Foodstuffs new distribution centre at Auckland Airport. The 7.7 ha centre is the largest in New Zealand with the ability to store 80,000 pallets. More info here. 
  • A former supermarket warehouse in Christchurch is being converted into a school for Marian College. The existing warehouse will be modified to create a sustainable two-storey space including 26 classrooms, a chapel, and a sports hall. The development will be completed in 2023.  More info here. 

Retail 

  • BNZ has opened a new branch in Westfield Newmarket, Auckland. The branch includes digital tools that allow bankers to spend more time focusing on customers.  More info here. 
  • Nido closed their Auckland store permanently last week. The closure has resulted in 60 job losses. Nido owes $22.3M to creditors and staff. More info here. 
  • The O’Connell Street Bistro in Auckland will close in mid-April due to the impact of COVID19 and the owners' inability to successfully renegotiate their lease. The restaurant has been open for 24 years. More info here. 
  • Chemist Warehouse is opening a 1,000 sqm store in the Palms Shopping Centre in Christchurch. The company has 21 stores and plans to reach 30 by the end of the year. More info here. 

Housing 

  • An award-winning house in Wellington has been demolished due to continuous leaky building issues. The house was built in 2001 and won the New Zealand Institute of Architects’ Supreme Award in 2003. The owner spent $200,000 fixing the leaks but the problem continued. The house was sold to property developer Gibbons Co for the cost of the land at $1.4M. More info here. 
  • A large residential development site formerly occupied by Marian College in Christchurch is for sale. The 17,737 sqm site is zoned Residential Suburban and is suited for medium-density housing. More info here.

Specialist Property 

  • The St James Theatre in Wellington has come across new issues during its earthquake strengthening project. The issues include weathertightness, resource availability, design detailing and agreement of pricing. Construction is currently underway to increase the NBS from 20% to 67%. The project budget has increased from $17M to $37M. More info here.  
  • The Ward Town Hall has been reopened after remediation work to fix damage caused by the 2019 Kaikōura earthquake. The hall was built in 1912. More info here. 

Government  

  • The government has announced a suite of policies to help solve the housing crisis. The package includes accelerating housing supply, increasing First Home Grant caps and house price caps, doubling the bright line test from 5 years to 10 years, extending the Apprenticeship Boost scheme, removing interest deductibility for rental housing, and a $2B loan for Kainga Ora to increase land acquisition. More info here. 
  • Local iwi Te Waiariki and Ngāti Kororā have occupied Department of Conservation land in Pātaua South in protest of the land being transferred to the Whangārei District Council. Te Waiariki and Ngāti Kororā are trying to purchase the land. More info here. 
  • Marlborough District Council have decided not to extend the Picton Museum onto the foreshore land. The council had originally agreed with the Picton Historical Society to extend the museum to display whaling artefacts. More info here. 
  • Christchurch City Council has won the bid to purchase central city land that is adjacent to the new stadium development. The 1,037 sqm of land was purchased for $1.54M.  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

Renee Lintott

Analyst

Auckland CBD

Renee joined Colliers in August 2019 as a Project Assistant for the Project Management team. Renee is now an Analyst for the Strategic Advisory team.  Renee is currently in her final semester studying towards a Bachelor of Property and Bachelor of Commerce conjoint at the University of Auckland.

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