Anne Gibson

Anne Gibson is the Property editor of the NZ Herald

Investments in buildings on up

One of the biggest commercial sales was on Queen St on Auckland's waterfront. Photo / NZPA
One of the biggest commercial sales was on Queen St on Auckland's waterfront. Photo / NZPA

The value of New Zealand investment buildings sold last year was back to pre-global financial crash levels.

Justin Kean, research and consultancy director at Jones Lang LaSalle in Auckland, said the commercial property market saw a big uplift in the volume of sales with more than $2 billion transactions last year. Offices were the biggest contributor, making up 42 per cent of the deals and totalling more than $1.1 billion for the year, compared to $427 million for 2012, Kean said.

Some of the biggest commercial sales were 1 Queen St on the waterfront sold for $103 million, 73 Remuera Rd in Newmarket sold by Manson TCLM for $100 million and the $92.6 million sale of 125 Fanshawe St for Fonterra's new headquarters, bought by Goodman Property Trust.

"The figures show that we are currently moving into a new stage in the market cycle," Kean said.

" With vacancy continuing to fall across most office stock purchasers believe that this is likely to manifest in upward rental pressure."

Industrial buildings worth $386 million were sold, the largest since 2009, making up 25 per cent of the sales volume. Deals included Cardinal Logistics, VIP Plastic Packaging and Tegel Foods, he said.

- NZ Herald

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