The week in New Zealand real estate - 27 August 2020

The week in New Zealand real estate 27 August 2020  hero

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

Institutional investors

  • Metlifecare has posted a $33.7M loss for the year to 30 June 2020. Revenue rose 8% to $134.1M, but asset revaluations impaired the profit. More info here.

Office

  • Air New Zealand is looking to sublease up to 5,000 sqm of fully fitted out office space within its headquarters in Wynyard Quarter, Auckland. The company has occupied the building since 2006. The sublease is part of achieving cost savings in response to the coronavirus pandemic. More info here.

Retail

  • Office Max is closing all 14 of its physical retail stores in New Zealand. The company will focus on online sales. More info here.
  • BNZ and Kiwibank have closed their Auckland branches after being advised they no longer held an exemption to open under Level 3 lockdown restrictions. Both banks held exemptions under Level 3 restrictions earlier in the year. More info here.

Hotels

  • Short-stay accommodation providers who have stopped their businesses or transitioned to long-term rentals have been given a temporary tax break. The providers will be given a break from the GST liability on assets used in running their businesses. More info here.
  • Non-bank lender MaxCap will provide $30M in finance to Safari Group for a mixed-use hotel and apartment development in Wellington. The Ramada Wellington will have 72 hotel units, 30 residential apartments and 14 visitor accommodation units. More info here.

Housing

  • The number of new homes completed in Auckland rose 22% for the month of June with 1,371 CCC’s issued up from 1,187 in June last year. 14,353 CCC’s were issued in the city in the year to June. More info here.
  • Plans have been released for a 231-apartment development to be built on the former Harbourside Church site in Takapuna. The 2.1 ha site is bordered by the harbour on three sides and is estimated to cost $350M to develop. More info here.
  • Napier City Council has settled a legal dispute with owners of the West Quay apartments. The dispute related to weathertightness and structural integrity issues. The settlement is confidential but the Body Corporate was previously seeking $30M. More info here.

Government

  • Tauranga ratepayers face a $7M bill to demolish a defective 550-park carpark building in the central city. Construction stopped midway through the $29M construction process after engineering defects were discovered. More info here.
  • Waipā District Council are reviewing plans for the new Te Ara Wai Museum in Te Awamutu. They are reviewing whether to pursue the original $40M plan or a smaller $16M version. The mayor believes ratepayers would no longer support the original plan. More info here.
  • Wellington City Council have released their draft spatial plan for how the city will look in 30 years. Goals for the plan include increasing housing supply and moving towards a carbon zero goal in 2050. More info here.
  • An application for demolition of the 121-year old former Tramways Hotel in Wellington has been filed after the Wellington City Council applied to take possession of the building to carry out strengthening works. The required works would cost $6M, but the building would be worth only $2.5M. 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