A tenanted storage complex at Rolleston in the Selwyn District south-west of Christchurch has been sold by Ray White Commercial Christchurch for $3 million. The property at 108 Izone Drive, Rolleston, was sold following a successful tender campaign by Ray White Christchurch Commercial Salesperson, Paula Raine.
Built between 2007-2011, the storage complex has shown an excellent history of high occupancy, demand and growth. Comprising three buildings totalling approximately 2,431sqm on a 5,924sqm site and consists of 134 storage units, one office unit and 20 onsite car parks. The property is securely fenced with swipe card access and each storage unit is alarmed with the complex also monitored by a security company.
Paula said the complex attracted strong interest as it has a history of high occupancy and is generating an annualised net rental of approximately $270,000 per annum excluding management costs. “We received 26 good genuine enquiries during the marketing campaign before the complex was purchased by a North Island-based investor… The sale price of $3 million represents a passing yield of approximately nine per cent – a great cash-flow investment as Selwyn is one of the fastest growing districts in New Zealand”.
On Sunday 23 February close to 25,000 people visited the Botanical Gardens in Manurewa for some fun, music and rock’n roll with friends, family and of course Elvis. Elvis in the Gardens is a free annual community event designed to raise money and awareness for a designated charity - this year being the Heart Foundation of New Zealand. Ray White Manurewa and Ray White Takanini were once again out in force supporting this annual appeal.
Unfortunately heart disease remains the leading killer in New Zealand, and every 90 minutes a New Zealander dies from a coronary heart disease. As this is one of the leading preventable causes of premature death in this country, the Heart Foundation of New Zealand not only help people affected by heart disease, but also fund research, and assist people in making healthy living choices and encouraging heart health.
What really brought the message home to us all, noted Kelley French from Ray White Takanini was “towards the end of the day, Sue noticed an elderly man leaning against the yellow Ray White car, looking rather white faced and unwell. While team members ran for St Johns medical staff… He apparently suffered a cardiac arrest and was taken immediately to Middlemore Hospital. Unfortunatelty, we still don’t have an update on the man’s condition, but I’m so proud of the team for the way they assisted and ran to his aide.”
The Ray White team have supported Elvis in the Gardens since it’s inception 3 years ago, and Ray White Takanini’s Sue Douglas says: “We’re delighted to be able to support and give back to our local community”. A huge hit with the kids this year, the Ray White team gave away a giant teddy bear in their “guess how many balloons in the Ray White Car” competition. The 134 balloons proved quite a challenge for the team to inflate and tie-off with ribbon – and surprisingly it was a correct guess that claimed the prize. – The team also gave away some Ray White piggy banks “to start saving for your first home”.
With Ray White approaching their 21st year in the New Zealand property market the 2014 Ray White Conference and Awards promises to be a truly spectacular event. Designed to show recognition to those in the network who excelled in the last 12 months, at this years event we also hope to acknowledge our Foundation Members – those who have been with us from the start of our time in New Zealand.
Our Ray White Corporate team have been working hard on securing a diverse line up of speakers for the day conference who include Sir Graham Henry, Paul Henry, Cameron Calkoen, Tom Panos and Jason Gunn. Carey Smith, CEO of Ray White New Zealand couldn’t be more excited about the line-up for the event – “designed to insight and inspire, it would be a pity for our members to miss this opportunity.”
Carey himself has been fortunate to conduct two pre-event interviews with keynote speaker Sir Graham Henry and Paul Henry – both of which can be viewed on the Ray White New Zealand YouTube page. After 26 years in the media, and fresh of the back of launching his new show, Paul Henry talks about real estate, ambition, trusting others, being true to yourself and experiences money can’t buy. He shares with us too his thoughts on being an estranged member of the royal family, self confidence and being a superhero. Sir Graham Henry takes us back to his early as a physical education teacher and talks too about his first coaching role in the 1970s and the madness that keeps him doing it. In the interview he talks more about the role of the coach, sharing responsibility, earning respect and simply trusting people to do their job. Both he and Paul Henry tell us too about their real estate endeavours – from his first real estate purchase of a Christchurch property for $10,000 to a sale 18 months later which saw him double his money – Sir Graham tells us about his thoughts on joining the industry, plus Paul talks about what a real estate agent would have to do to win him over. (There is still time too to submit questions to both Paul Henry and Sir Graham Henry for them to address at this years’ conference. Simply email questions through to Stephanie Watson at Ray White Corporate.)
Jason Gunn, one of the most recognised faces on New Zealand television best known for his roles hosting Wheel of Fortune and Dancing With the Stars, will certainly add a new dynamic to Wednesday’s Property Management Day Conference while Sir Graham Henry, Paul Henry and Tom Panos, the Real Estate Advertising Director for News Limited and also one of Sydney’s leading real estate auctioneers, will present at the Thursday Conference. The day conference will be rounded out with the inspiring personal story of Cameron Calkoen – who will talk about his personal journey of pushing though the physical limitations associated with his cerebral palsy to set his own goals and go on to representing New Zealand.
With a record number of nominations too in our awards categories of Administrator of the Year, Personal Assistant of the Year, New Start Salesperson of the Year, Property Manager of the Year, New Start Property Management of the Year, Property Management Support Staff Member of the Year, Property Management Office of the Year Property Management Innovation Award we’re sure to have an exciting night of announcements at the Thursday night awards ceremony as we recognise our standout achievers for the last year.
A sell out crowd of 140 people converged on the TomTom bar in Auckland last Thursday for the first Young Professionals in Real Estate (YPIRE) event of the year. Along with a panel of YPIREs, key note speaker Olly Newland generously invested his time in the next generation of property professionals.
The captive audience of young real estate professionals, gathered to hear New Zealand’s long-time property investor and developer, television presenter and best-selling author Olly Newland address the crowd and answer questions from the floor. Olly spoke with passion about his years in the property industry, and then it was then over to the inspirational panel of young professionals including Blair James, Natalie Wendell, Jared Cooksley, Kyron Gosse, Phillip Haeder, Rick Hale, and Theo Thrasy. The panel talked about their highlights and challenges in the industry and why they chose property as a career when youth is deﬁnitely the minority demographic.
The event was organised by the Young Professionals in Real Estate (YPIRE) – an open, non-branded, industry group designed to help build and grow the next generation of real estate practitioners. The group’s aim is to support and develop careers by providing regular networking sessions, events with inspirational speakers, social media, social functions, award recognition, conferences and more throughout Australia and New Zealand. Ray White were well represented on the evening as were other real estate companies, developers and other property related businesses from across New Zealand.
This was the first event in the YPIRE 2014 schedule and certainly provided all those who attended a great opportunity to connect and learn in a relaxed and fun environment, sharing stories from the best in the industry and spending time with those who are also aspiring to be at the top of their game. The night was made possible through the YPIRE panel and the generous support of LoanMarket. The next YPIRE event is scheduled for 9 May 2014 and will be partnered with the Auckland Property Investors Association (APIA).
Accommodation blocks Ingenia is selling in the heart of Wellington are reckoned to be worth at least $55 million
Australian listed Ingenia Communities Group is selling its three big Wellington properties, estimated to be worth more than $55 million.”The offering comprises three fully leased, recently refurbished and seismically upgraded student accommodation buildings,” says Bruce Whillans, managing director of Auckland-based Ray White Commercial who is marketing the portfolio with colleague Brendan Keenan.
Whillans and Keenan are selling the properties by tenders closing on April 3, with potential buyers being able to tender for individual buildings or the entire portfolio,
“Cumberland House, Education House and the McKenzies Apartments are all in Willis St and are leased to Victoria University and the Wellington Institute of Technology, or Weltec, for 15 years, with guaranteed rental growth.” Whillans says the properties are close together, creating a unique student housing hub that is less than a 15-minute walk away from Victoria University’s main campus and Weltec’s city and new School of Hospitality campus on Cuba St. The buildings also benefit from being close to the city’s main retail, restaurant and entertainment district at Cuba St and Courtenay Place, just a five-minute walk away. The three student complexes are generating total net annual income of $4,322,097 and are forecast to deliver $4,330,986 over the next 12 months to January 2015 through a series of market and Consumer Price Index-based rent reviews. The rents are based on a combination of commercial tenancies and 618 student beds.
Whillans says the already robust cash-flow portfolio could be further boosted by renegotiating and re-leasing several of the commercial tenancies, as well as taking advantage of further short-term accommodation revenue from Cumberland House during the summer holiday period. “An additional 464 student beds could potentially be added by future development,” he says.
Over the years Ingenia has owned the properties, it developed a strong summer accommodation operation catering to summer students and budget travellers. This business was underpinned by key Wellington events including Rugby Sevens, cultural festivals, and concerts. In terms of their investment value, Whillans says tertiary student halls of residence rarely become available because they are held in high regard as property assets for their stable counter-cyclical incomes. They are traditionally owned by governments, sovereign wealth funds and larger offshore real estate investment trusts.
“Halls of residence are internationally recognised as a sought-after and growing asset class and this portfolio is not dissimilar to a government bond, with over 90 per cent of the portfolio’s income anchored by Crown-funded tenants. ”A blend of CPI, fixed and formula-based annual rent reviews ensures a guaranteed rental growth while capitalising on the strong performance of the student housing sector where the supply of new accommodation is struggling to keep pace with enrolment growth,” Whillans says. ”Victoria University currently receives twice as many applications for its student halls of residence than the beds available, which demonstrates the shortfall in supply.” The university has four main campuses in Wellington with a student population of about 21,000. Three are within a 10-minute walk of Cumberland and Education House. The fourth, at Karori, is a 10-minute drive from the CBD.
Weltec also has two city campuses and a student population of about 9500, with enrolment growing significantly over the past five years. The institute has committed to expanding its role of foreign exchange students, a key source of demand for student accommodation. ”By implementing an international marketing and recruitment strategy for Wellington, Weltec aims to increase the number of international students in Wellington from 2013 onwards,” Whillans adds. ”Weltec’s first student hall of residence, McKenzies Apartments, is very sought after. Demand exceeds supply, and all 280 student beds are taken up for the 2014 academic year.” Whillans sees the portfolio as an exceptional opportunity to secure an institutional investment-grade portfolio with a stable income stream which also offers significant development scope and value-add potential.
Catering to first-year students, Cumberland House at 237-253 Willis St has 187 rooms with 104 self-contained bedroom apartments and 123 communal beds, providing a total of 227 beds over 11 levels. The ground-floor lobby accommodates a dining hall and kitchen. Additional mezzanine office and meeting-room space above the ground-floor is used by Victoria University staff. The first floor of the tower is used as a student community centre and includes a cinema, laundry, kitchen, gym, study rooms, workrooms, music room and lounge area. Work and Income occupies part of the ground floor with offices extending the length of the building through to the adjacent podium building facing Victoria St. The main tower was seismically strengthened last year to 70 per cent New Building Standard, with a major $5 million refurbishment project completed in the past month. This included new lifts, water boiler, carpet, paint and furniture throughout, new bathrooms, external painting, new commercial kitchen and dining area with the fit-out owned by the landlord and an overhaul of the reception area and offices. Behind the main tower and separate from the Victoria University facilities is a second three-level building facing Victoria St, occupied by a mix of commercial tenants and parking.
Whillans says this could generate extra value over the rear portion by negotiating a new lease to a national bulk retailer with further development possible by way of a second tower with about 204 beds. ”Several serviced apartment and hotel operators have also registered interest in establishing an operation on this site,” he says.
The McKenzies Apartments at 222-232 Willis St has 168 bedrooms split into 100 studio apartments, 44 two-bedroom apartments, 23 four-bedroom apartments, and one three-bedroom manager’s flat, providing a total of 283 beds. Weltec occupies all six levels of the building with the exception of a 517sq m restaurant on the ground floor previously occupied by Dennys. The balance of the ground floor has a reception area, office, community centre and TV lounge and 14 student beds. The building is configured around a main atrium with an interior courtyard on level 1. The group spent $18 million on stripping the building back to a basic shell, including major seismic upgrading and a complete refit, and the apartments reopened last month.
Whillans says it offers some of the most modern and well-appointed student accommodation in Wellington and is the only source of student accommodation available through Weltec. “Long term a second building could be developed on the site on the southern car park, with initial concept plans indicating an additional 100 beds could be achieved. ”It could be possible to generate further income from this property by leasing the vacant restaurant, leasing the car parks on the southern boundary and generating more from the billboards on site.”
Education House at 178-182 Willis St has 108 fully self-contained single studio rooms catering mainly for seniors and overseas students. It has six levels of accommodation, with a ground floor component which offers communal spaces, a lift-lobby and two retail tenancies. The layout delivers 18 units per floor with an average unit size of 17-18sq m. Each unit is equipped with its own shower and toilet and a small kitchenette. Covered parking for 17 vehicles is at the rear beneath the adjoining building, created by a peppercorn licence with a 25-year term with three further rights of renewals of 25 years each and a final expiry date in 2102. A major $2 million refurbishment project was completed in the past month and the property now presents to an ‘as-new’ standard. Works included new lifts, hot water tanks, carpet, paint and furniture throughout, new heaters, a revamp to the external facade, a new roof membrane and an overhaul of the community lounge and laundry facilities.There is future potential to add a further six floors to Education House, taking advantage of the 43.8m height restriction under the district plan. Indicative drawings have been prepared that make efficient use of the existing structure adding about 2292sq m of floor space, which would allow for an extra 100 student beds.
“In the short term, the current owners are in the process of negotiating a new six-year lease with the existing ground-floor cafe tenant, who has enjoyed a strong trading history at Education House. Additional revenue can also be achieved by leasing the vacant ground floor retail space and car parks,” Whillans says. Formerly the ING Real Estate Community Living Fund, the Ingenia Communities Group first acquired the New Zealand student portfolio in 2006 as part of a wider strategy to invest in seniors’ housing and student accommodation across Australia, New Zealand and North America. At the time, the portfolio was owner-operated with Ingenia being responsible for directly running the student accommodation facilities. All three buildings were occupied by Victoria University students during the academic year with the uni underwriting occupancy levels. In operating the facilities, Ingenia partnered with Campus Living Villages, an international accommodation management group owned by Transfield. Ingenia says it is divesting of the properties after a strategic review in 2010 which has seen it progressively sell its offshore portfolios and increase its focus on the Australian seniors’ housing market. Over the past three years the group has divested its interests in the Canadian and United States seniors’ housing portfolios and completed its exit from the United States student housing market. In New Zealand, it decided to invest $25 million upgrading its Wellington interests before putting them up for sale again.
Source Colin Taylor - NZ Herald
Ray White are pleased to announce the opening of Ray White Tinwald which is located just outside of Ashburton. This is part of the expansion by Mid Canterbury Real Estate business owner Jill Quaid. The office in Tinwald will be a branch office and adds to the main Ashburton business and also the office in Methven.
Jill Quaid said since joining Ray White last year, the business continues to go from strength to strength. “We have increased our market share and we also have had a number of new salespeople join us and this has allowed us to open a business in Tinwald to support our current high level of activity through this area.”
Julie Ryan, Ray White New Zealand’s South Island Business Performance Manager, said that the opening of the Tinwald office shows the continuing commitment that Jill Quaid has to the mid Canterbury region. “This now sees Jill have a three office network and the two community based offices at Tinwald and Methven support the main office at Ashburton very well. Ray White currently holds a high market share in Tinwald and it is a natural progression for this office to be within the main area of Tinwald, not only for those property owners in the area but also for the Ray White team to be able to meet and discuss the locals property needs.”
Ray White New Zealand were again acknowledged at the 2013 ESET Netguide Web Awards as a finalist in front of a large audience at the awards held last Thursday at the Hilton Hotel to celebrate the New Zealand IT industry award winners for 2013.
Ray White were the only national franchise group to be recognised as one of the finalists in company with three other independent property websites and only one other real estate company. Ray White were also finalists in the awards last year that had over 290,000 votes from the public awarding in various categories.
Head of technology in New Zealand, Keith Ashkettle, said that the Net Guide finalist acknowledgement supported the Ray White Group’s industry leading applications that have been applied to the raywhite.co.nz website, particularly during the past 12 months. The Group has engaged Walk Score that gives users real time information in regards to what a particular area has to offer in respect of services, schools and transport. This was one of the most used applications on our website.
The Ray White Group in 2014 introduced to its franchises an integrated video system provided by Autoplay. The company has a tiering method which ensures every property which is listed with a Ray White member can have a video and we also have the capability of providing voice-overs and individually custom-tailored videos for property.
Carey Smith, Chief Executive of Ray White New Zealand, said that he wished to acknowledge the outstanding work the Ray White technology team do for the company. Members also keep us at the cutting edge of our technology requirements and that assists us in being an industry leader in all areas of technology.
The Ray White Group has 135 websites which link to each individual office and this is housed within a national website. Ray White also has a high degree of readership on the blogging website raywhiteonline.co.nz
With an opening bid of $1 Million dollars in the Ray White Tokoroa Auction Rooms on Thursday 13 February, there were more than a few surprised faces, and disappointed buyers, in the room.
The 20.2494 hectare block on Old Taupo Road was certainly a rare find in today’s market. – Just five minutes from the town centre, easy contour, well fenced and watered, and currently grazing dairy replacements this easy to run block would lend itself to maize or silage production. Featuring a large 6 bay half round barn, plus large hay shed and decommissioned cow shed, the property comes complete with an executive three bedroom home ( featuring modern kitchen, spacious lounge, the master bedroom has ensuite and walk in wardrobe).
Ray White Tokoroa Rural Sales Consultant, John Williams attributes the interest in the property to the not only to the proximity of the land to town, and the fertile, mainly flat contours of the land, but also to the manageable size of the land which made it “useful” and “appeal to a range of farmers”.
Identifying early on that a buyer may in fact come from an owner of a neighbouring property John Williams wanted to ensure he sought the maximum value for his vendors. A four week auction campaign was undertaken with weekly open days. Adverts in the Straight Furrow captured a wider pool of interest – and in the end 880 hits on trade me and 44 interested parties were recorded with 14 registered bidders on auction day.
In an area where agreements are often made privately, and early discussions with registered parties put the potential sales figure at around the $850,000 – $950,000 mark, the vendors still hoped to achieve over a million dollars for their property. An opening bid of $1 million stopped a lot of bidders in their tracks – but the price rose steadily to reach $1,270,000.00 – well above Vendor expectations, and just proving that although you may know the source of your probable buyer, to achieve the best possible price in the marketplace you need to create the competition, desire, and let the market determine a fair price.
The property sale set a new record for the Ray White Tokoroa team – where similar properties in the area average around the $35,000 per hectare – this property sold for well over $60,000 per hectare. “I think this really highlights the importance of listing with a licensed real estate salesperson and undertaking a professional marketing campaign to ensure you are not potentially capping your returns.” says Ray White Tokoroa Licensee Dave Lamberton.
Marcus Ng, head of Ray White China, recently presented to Ray White Auckland business owners and sales members on the opportunity that is available through Ray White China. In his presentation Marcus talked about the commitment Ray White has to the Asian region, with offices in Malaysia, South Korea, Singapore and Hong Kong.
The new office in Beijing recognises the increasing importance of the integration between the Asian economies and New Zealand and Australia. Marcus will be connecting Chinese buyers to Ray White New Zealand businesses.
Ray White was the largest exhibitor at the renowned Beijing Property and Investment Exhibition held late last year. There were approximately 100,000 visitors and Ray White displayed several Auckland properties directly through the Expo and also on Chinese television.
The combined activity generated a large amount of enquiry and this has now moved to the next level, with Marcus Ng opening his office and Ray White having a multilingual China desk team led by Sen Wang who will be providing dedicated resources and services to add value to Chinese sellers and buyers and this will include translated marketing material, websites, compliance information and one-on-one multi-lingual services to assist in all property transactions.
During the presentation Marcus also released marketing packages, which include a broad range of Asian distribution points through web and media. This was accompanied by listing presentation material, a Chinese information fact sheet and the listings which are shortly to be released on raywhitechina.com
For further information regarding the Ray White China desk please click here to contact Sen Wang.
The Ray White Group is pleased to announce the opening of their 135th real estate office through Sue Douglas Property Services in the new Takanini Village located in South Auckland. The new office is part of the Takanini Village development and is a flagship standalone office located in the main hub of Stage 1 within the project. The office has been nominated for several design and fitout awards.
Last night over 120 people gathered to celebrate the opening of the office. Helen O’Sullivan, Chief Executive of the Real Estate Institute of New Zealand, in her address acknowledged Sue Douglas and complimented Sue on her long tenure within the industry. She went on to say the opening of the new office represents everything the industry is striving for in respect of standards and professionalism.
Sir Peter Leitch also spoke at the opening and reflected on his first business expansion into South Auckland. He spoke about the genuine relationships within the community and how trust and opportunity play a big role in the success of business today.
Carey Smith, Chief Executive of Ray White New Zealand, reflected on Sue’s outstanding career and how the business mirrored the family values of Ray White given the support Sue has from her husband Wayne and daughter Jodi. He went on to say the office is one of the true statements of confidence within the industry and reflects the commitment business owners within Ray White are striving towards.
Bruce Wallace from Wallace Construction, who are the developers of the new village, spoke with pride about being a local Takanini family and how Sue and Wayne shared their outlook on the growth of the area and the strong belief in the future of community business hubs that are attractive for a number of different businesses and service providers.
Sue Douglas in her address acknowledged her husband, Wayne, and daughter, Jodi, and their 34 member team and the commitment to youth and the development of genuine real estate careers within her business. Sue said that the new office is an environment that will respond to not only those who work within the business but also allow for a full service business with property management, auctions and finance planning a role within the business.