The week in New Zealand real estate - 28 May 2020

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

Institutional

  • Arvida Group has reported a $42M annual net profit after tax, down 28% on last year. More info here.
  • Goodman has reported a $261M profit for the year. Profit was slightly lower than last year due to slowing revaluation gains. More info here.
  • Kiwi Property has reported a $187M loss for the full year ending 30 March 2020. The loss was primarily due to $290M of asset write-downs. More info here

Office

  • Asset Plus has received resource consent for its development of 6-8 Munroe Lane, Albany, which is anchored by Auckland Council. More info here.
  • The new Wintec national mega polytechnic headquarters will be located in Hamilton. More info here.

Industrial

  • Xytech Group is opening their new 11,725 sqm X3 studios in South Auckland. The studios will offer flexible production space, including a ‘mega studio’ which will be the largest clear span stage in the Southern Hemisphere. More info here and a video here.

Retail

  • The Warehouse is closing its store in Birkenhead, Auckland. More info here.
  • H&J Smith is reviewing closure of stores in Dunedin, Mosgiel, Balclutha and Te Anau. More info here.
  • Meridian Mall in Dunedin may lose tenants as a result of difficult rent relief negotiations. More info here.
  • Michael Hill are closing 9 stores globally, with 3 closures in New Zealand. Further stores were likely to close based on store performance and landlord negotiations. More info here.

Development / construction

  • Fletcher Building is proposing to cut 1000 jobs in New Zealand and 500 in Australia. More info here.
  • The Shelly Bay development in Wellington is being challenged in court again. A Miramar interest group has filed for a judicial review. More info here.

Government

  • The Building Act will be amended to scrap building consent requirements for some low risk works. This will include sleep outs, car ports and sheds. More info here.
  • The government has put decisions about Auckland’s proposed light rail project on hold while it focuses on fighting the COVID-19 pandemic. More info here.
  • Waikato District Council has been granted $2.5M from the Regional Development Fund to upgrade the Raglan Wharf including adding capacity for commercial, chartered and recreational boats. More info here.
  • Waka Kotahi (NZTA) has begun negotiating with property owners to acquire land for Auckland’s $1.35B Mill Road project after taking over as lead agency from Auckland Transport. More info here.
  • The plan to turn the Te Aroha mineral spas into a boutique spa resort is at risk with Matamata-Piako District Council now requiring $16M of the $18.8M for the development to come from the Provincial Growth Fund, up from an original application for 50% funding. More info here.
  • Dunedin City Council has placed its waterfront transformation on hold due to the financial impacts of the COVID-19 pandemic. More info here.
  • Dunedin City Council has released plans for a proposed makeover of the central business district. The plans include creating a shared space on George Street, wider footpaths and more planting. 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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