Kiwi Property to sell Northlands
7.9.22 As part of its ongoing strategy to focus on the development of mixed-use town centres, Kiwi Property has secured a conditional agreement to sell Northlands Shopping Centre and 43 Langdons Road (Northlands) in Christchurch. The acquirer is MP Holdings 5 Ltd, an entity managed by Mackersy Property (Mackersy), for $160m. The final sale price represents a property level internal rate of return of 10.9% since inception. The purchaser will retain $9m to complete seismic works (noting that...
Retail vacancy rates stabilising
2.9.22 Despite significant headwinds, there are reasons for optimism within the country’s largest CBD retail markets, according to Colliers International in a new report on the retail property sector. Their research cites a stabilisation in vacancy rates, the return of key support fundamentals, following the reopening of the border, and the adaptability of building owners and retailers. Strip retail vacancy within Auckland’s CBD stood at 13.8% in June 2022 according to the results of the...
NZ housing downturn deepens -CoreLogic
1.9.22 New Zealand’s housing market downturn has accelerated in the past month with the rate of falls in property values doubling month-on-month in August. CoreLogic’s House Price Index (HPI), which is the most robust measure of property value change in the market, shows the national measure of property values fell a further -1.8% in August, twice the rate of that seen in July (-0.9%). CoreLogic NZ Head of Research, Nick Goodall said restricted, more expensive credit continued to impact...
Winton Land exceeds forecasts
24.8.22 Winton Land’s inaugural full June year result as an NZX listed company is slightly ahead of its PFI forecasts at $159.5 million in revenue and net profit after tax of $31.7 million. Winton’s gross profit was $72.4m, 2.7% ahead of the company’s PFI and 26.1% ahead of FY21. During FY22, the timing of development and construction programmes resulted in Winton settling 18.8% fewer units than FY21, which saw FY22 revenue 9.9% lower than in FY21, while cost of sales were 27.1% down on FY21....
House prices in descent
The latest REINZ report revealed a further cooling in the housing market. House sales (July month): 4,822* Monthly % change: -3.1% (Prev month -11.2%) Annual % change: -36.7% (Prev month -36.1% House Price index* Monthly % change: -1.7% (Prev month -1.0%) Annual % change: -2.9% (Prev month +0.7%) The REINZ house price index fell another 1.7% over the month and prices are now down 3% compared to the same month last year. “We have not seen year-on-year house price falls since 2011, when the...
CDL notes change in trading climate
10.8.22 NZX-listed property development and investment company CDL Investments New Zealand (NZX:CDI) reported an operating profit after tax of $22.90 million (2021: $20.75 million) in the June six months. This is on revenue of $47.81 million (2021: $61.27 million). “The last six months have seen a dramatic change in the trading environment”, said CDI’s chair Colin Sim. “The irony is that those changes have been caused by external factors totally outside of our control and have nothing to do...
Building activity rising
The volume of building activity in New Zealand rose 3.2% in the March 2022 quarter, compared with the December 2021 quarter, according to Stats NZ. Residential building activity rose 3.5% in the March 2022 quarter, while non-residential building activity rose 2.7% "Residential building activity has risen over the past two years, except in quarters impacted by alert level 4 lockdowns. “This reflects the large number of consented new homes in the construction pipeline,"...
SBS Bank has solid year
SBS Bank has delivered another strong result for the 2021-2022 financial year, finding innovative ways to support members through the challenges of the Covid-19 pandemic. The SBS Group, which includes subsidiaries Finance Now, FANZ and SBS Insurance (Southsure), reported an operating surplus of $61.3 million for the year ending March 2022, up from $55.2 million the previous year. The bank’s lending rose $365 million to $4.4 billion during the period and SBS Bank members’ equity increased $74...
Investore has strong year in large format
Large format retail has boosted Investore's valuation 18.5.22 The market for large format retail properties has remained strong during the last year and this has benefited Investore in the year FY22. Evidencing this demand, Investore’s portfolio is independently valued at $1.2 billion as at 31.3.22, a net valuation increase of $91.0 million or 8.2% over the 12 months from 31.3.,21. This increase has been driven primarily by capitalisation rate compression which evidences the continued...
‘Debt vs Equity split opens up
Corelogic has highlighted a ‘debt vs equity’ split in the property market, with mortgaged investors and first home buyers seeing low/falling shares of property purchases, but cash investors and movers having a rising presence. In a Market Pulse column CoreLogic’s Chief Property Economist, Kelvin Davidson, says, “To be fair, these changes in market share need to be viewed in the context of lower overall numbers of transactions. “But with loan to value ratio rules still pretty tight and mortgage...
Fabric property portfolio switch
5.4.22 Stride Property has confirmed that the acquisition by SPL’s wholly-owned subsidiary, Fabric Property Ltd of the Prime-grade property at 110 Carlton Gore Road, Newmarket, Auckland, from Mansons CGR Ltd is now unconditional, with all conditions having been satisfied or waived. The purchase price is $213 million, being $4.5m below the originally contracted purchase price. In addition, Fabric has entered into an agreement to sell four B-grade office properties to Mansons CGR Limited, being...
A decade delay on that deposit
27.2.22 It now takes 11.7 years to save a deposit – that’s a key message in a new report from CoreLogic, Surging house prices, rising mortgage rates and low wages growth has led to further deterioration in housing affordability, according to CoreLogic’s bi-annual Housing Affordability Report. All but one of CoreLogic’s four measures of affordability nationally have deteriorated to their worst levels on record. CoreLogic Chief Property Economist, Kelvin Davidson, says, “We know that...
Precinct links up with Singapore fund
23.2.22 Precinct Properties has today revealed it has conditionally established a new strategic investment partnership with Singapore sovereign wealth fund GIC. The partnership will initially acquire five assets from Precinct’s existing portfolio totalling around $590m, comprising three Wellington and two Auckland assets, with the ability to grow to around $1.0 billion. Precinct will own a minority 24.9% interest in the partnership. The establishment of the real estate investment partnership...
Industre lifts portfolio value
13.2..22 Stride Property Group updated on the Industre Property Joint Venture portfolio, noting that the total portfolio value has now grown to $787.7m as at 31 .12.21. It would stand at $864.3m including completed and committed acquisitions and developments. The Industre portfolio was valued at $737.7m as at 30.9.21, or $792.4m including committed acquisitions and developments as at that date. Industre has achieved $72m of further growth in its portfolio on a committed basis, including $37m...
Increasing investment demand
5.2.22 Heightened investment activity looks set to propel the total annual value of commercial and industrial property sales in New Zealand past $12 billion for the first time, says Colliers New Zealand. “This reflects the impact on value and the significant yield compression that has occurred over the past few years,” says Chris Dibble, national director partnerships and research at Colliers. The final tallies will be confirmed over the next few months due to lags in official reporting, but...
Rising investment demand
4.3.22 Heightened investment activity looks set to propel the total annual value of commercial and industrial property sales in New Zealand past $12 billion for the first time, says Colliers New Zealand. “This reflects the impact on value and the significant yield compression that has occurred over the past few years,” says Chris Dibble, national director partnerships and research at Colliers. The final tallies will be confirmed over the next few months due to lags in official reporting, but...
Record price surge for houses
25.1.22 In December, the national average asking price jumped by a quarter year on year, to reach a new high of $956,150, according to the latest Trade Me Property Price Index. Trade Me Property Sales Director Gavin Lloyd said last month’s national average asking price increase was the largest on record. “After entering the $900,000 bracket for the first time in November, the national average asking price continued to break records and show unprecedented growth last month. “ December marked...
Deceleration in housing market
The Auckland market softened in December 18.1.22 The REINZ report for December provided more convincing evidence that higher mortgage rates and tighter lending restrictions are having an impact on the housing market, says Michael Gordon, acting chief economist at Westpac. “The house price index fell by 0.5% in seasonally adjusted terms, the first monthly drop since the Covid lockdown last year. “Sales continued to fall, and are now starting to drop below pre-Covid levels. The softening in the...
Two Christmas deals for Goodman
23.1.2.21 Goodman (NZ) has inked two notable transactions with which to celebrate the end of the 2021 year. Goodman is to develop a new 17,992m² parcel processing centre for NZ Post on Bush Road in Albany This follows another design-build project underway for the customer at the Trust’s Roma Road estate in Mt Roskill. Goodman CEO John Dakin said, “NZ Post has committed to a 20-year lease over the new facility. Like the Roma Road project, it will be a highly sustainable, carbon neutral, Green...
Precinct commits to Stage 3 Wynyard
21.12.21 Precinct Properties New Zealand has committed to the development of 124 Halsey Street and the Flowers Building, which is the third stage of the master-planned Wynyard Quarter Innovation Precinct. The project will be undertaken on an un-committed basis and has an expected total project cost of around $157m and will generate a yield on cost of circa 5.75% once the building is fully leased. Scott Pritchard, Precinct's Chief Executive, said, “We continue to observe strong demand for new...
Residential trend still upwards but tapering
Weymouth, Auckland. 14.12.,21 Property prices climbed further in November, early signals suggest price growth will continue though more moderately, according to the latest data from the Real Estate Institute of New Zealand (REINZ). Median prices for residential property across New Zealand increased by 23.8% from $747,000 in November 2020 to $925,000 in November 2021 — a new record high. While the median house price for New Zealand excluding Auckland increased annually by 26.0% from $615,000 to...
Property developer doing $350m IPO
Winton development at Arrowtown 2.12.21 The flow of new companies gravitating to the NZX and ASX sharemarkets while they remain buoyant continued today when Winton, one of New Zealand’s largest and most experienced property developers, lodged a Product Disclosure Statement for an Initial Public Offering of ordinary shares to raise up to $350m. Winton aims to list on the main board of the New Zealand Stock Exchange (NZX) and with a foreign-exempt listing on the Australian Securities Exchange...
Stride capital raise after solid half
25.11.21 Stride Property Group has delivered positive results during this six month period, with profit before income tax from continuing operations of $69.5m, up $14.3m from the six months to 30 September 2020 (HY21). Profit after income tax from continuing operations is $61.5m, up $9.9m from HY21. Stride confirms its previous guidance of combined cash dividends for FY22 of 9.91cps, assuming no further restrictions are imposed due to COVID-19 once the traffic light system takes effect,...
MIndboggling house prices in August
Herne Bay, Auckland, is NZ's most pricey suburb 27.9.21 Despite COVID, snap lockdowns and border closures, all major centres achieved residential property price gains with some suburbs increasing in value by more than $500,000 in the 12 months ending August 2021. CoreLogic NZ’s chief property economist Kelvin Davidson says the company’s Mapping the Market tool highlights a “broad-based and frankly rampant upturn” in property values over the past year or so, in almost all suburbs of NZ.”...
Kiwi Property launches build-to-rent project
21.9.21 Kiwi Property is moving ahead with the construction of New Zealand’s first major build-to-rent development, marking an important milestone in the delivery of the company’s mixed-use strategy. The 295 apartment complex will be located at Sylvia Park in Auckland, accelerating the site’s evolution into an integrated retail, office and residential community. Build-to-rent accommodation is developed, owned and managed by institutional landlords, specifically for long-term rental. Featuring...
Revaluation for Vital property
4.8.21 NorthWest Healthcare Properties Management Limited (the Manager), as manager of Vital Healthcare Property Trust expects Vital to record $175m of property revaluation gains over the second half of the financial year ended 30 June 2021. This is a 7.8% increase since 31 December 2020, is in addition to the $61m recorded for the six months ended 31 December 2020 and equates to a full year gain of $235m (subject to rounding), a 11.3% increase. This revaluation gain, after allowing for $269m...
Property markets push CDL higher
3.8.21 CDL Investments New Zealand has reported an operating profit of $20.75m (2020: $13.74m) on revenue of $61.27m (2020: $40.96m) for the half year to June 30. “The property markets in New Zealand remain strong and buoyant and our first half results reflect that”, said CDI’s managing director Mr. BK Chiu. “We settled sales in Auckland, Hamilton and Canterbury and interest from purchasers for future stages continues to be positive which is a good sign for the second half of the year”, he...
DGL acquire Chem Pack property
13.7.21 DGL Group has acquired the freehold property of its chemical manufacturing operation in Victoria, Australia. DGL Group is a specialist chemicals business that manufactures, transports, stores and processes chemicals and hazardous waste. The acquisition of a property at 120 Fulton Drive, Derrmiut, Victoria involves a total consideration of $5.5 million. The site houses the head office of Chem Pack Pty Ltd (Chem Pack) and includes warehouse facilities purpose built for the formulation...
Valuation lift for Investore
18.5.21 nvestore Property reports profit after income tax for FY21 of $161.3m, up $132.6m from FY20 ($28.6m), largely attributed to the $139.3m net valuation gain across Investore’s portfolio for the 12 months ended 31 March 2021 Investore performed strongly during FY21, a year that presented a number of opportunities and challenges for Investore. Investore’s financial position is a testament to the opportunities taken by Investore during FY21, and the company is in an excellent position to...
First purchase for NZ Rural Land
15.3.21 One of the new arrivals on NZX, the New Zealand Rural Land Co Ltd (NZL.NZX) is out of the starting blocks with its first acquisition, under conditional agreement, in a series of expected acquisitions. NZL’s first purchase is a 456 hectare dairy farm in Mokoreta, Southland with a settlement date of 1 June 2021. The purchase price is $10.37m. The agreement remains conditional on a successful ‘Drop Test’ to test the integrity of the effluent pond on the farm and this condition is due to...
