Dame Fran Walsh and Sir Peter Jackson's company recorded NZ's largest property deal of 1HY24. Photo / Getty Images
The half-year’s biggest property deals have been listed after a company directed by Sir Peter Jackson and Dame Fran Walsh recorded New Zealand’s largest purchase this year with LB HC’s $105 million purchase of Wellington land.
The economy is still sluggish with many companies reporting losses in the earnings season this month.
But Zoltan Moricz, CBRE research head, released the consultancy’s transition monitor which showed $1billion-plus of transactions in the June half-year.
That’s the lowest value in a half-year since 2013, but buying and selling activity is continuing apace and Moricz said the Reserve Bank’s OCR cut this month gave more confidence.
He confirmed the filmmakers’ purchase of almost an entire street block in Lyall Bay near Wellington Airport for what could be a new film museum although no definite plans have been announced by Jackson or Walsh.
LB HC bought the lessor’s interests in the properties. What had been leasehold is now freehold, giving clearer title.
CBRE referred to this deal as the Rongotai ground portfolio, acknowledging the Jackson/Walsh company had bought the lessor’s interest, meaning it is not leasehold any more.
Property records showed LB HC or Lyall Bay Holding Company’s activities.
Its name is on properties on the block bounded by Tirangi Rd, Kingsford Smith St and McGregor St.
Moricz said the largest deals of 1H24 were:
1. Rongotai ground portfolio, $105m
The CBRE transaction monitor said the biggest sale of 2024 “involved almost an entire block of leasehold land in Rongotai. This transaction, involving a ground lease portfolio, encompasses multiple properties on Tirangi Rd and Kingsford Smith St, adjacent to Wellington Airport”. McGregor St also bounds the site.
“This single sale comprised around 70% of the total value of development site and land transactions,” the monitor said of the Jackson deal.
Last year, Jackson and Walsh bought half a dozen sites in a block just south of here so they could have about 3ha now.
The properties in the latest $105m deal are on the shores of Lyall Bay, with only Lyall Parade running between these and the sea.
They comprise 2.7ha and an entire block except for a vehicle repair business owned by Edwards Panel & Paint.
BusinessDesk reported this week the famous filmmakers paid $40m above the registered valuation for the site of a potential film museum.
Property records showed LB HC bought 102, 108, 114, 120, 126 and 130 Tirangi Rd and 5, 25, 29, 35, 41, 45 and 47 Kingsford Smith St for $104 million.
2. Ponsonby Central, $72m
Queenstown’s Westwood Group bought Auckland restaurant/cinema/office hub Ponsonby Central for $72m.
Real estate agency Colliers announced the deal on July 2.
Westwood owns Queenstown’s Steamer Wharf in the centre of town as well as various shops and offices in the tourist hub including Malaghan House, where Deloitte is based.
Tony Butson, a Westwood Group director, said the Ponsonby asset was a standout to add to existing holdings.
“The opportunity to purchase this property given its prominent location in one of Auckland’s most keenly sought suburbs was too good to pass up. There are considerable similarities between Ponsonby Central and Steamer Wharf in Queenstown so we believe we have plenty of expertise to help Ponsonby Central continue to evolve as a premier food and beverage and retail offering,” Butson said in July.
3. Logistics Centre sale, Islington, Christchurch, $40.4m
Moricz said this was a sale and leaseback transaction by Sorted Logistics which has its head offices at 451 Waterloo Rd in Christchurch.
Two properties are involved.
“This is a modern, high-quality distribution centre,” Moricz said.
Sorted says it is a leading provider of storage and warehousing services on a national level and offers a range of personalised services from bulk storage through to complicated pick and pack operations.
4. Waiata Shores neighbourhood centre, Takanini, $37.1m
Sale of a new retail centre by CBRE. This property is anchored by a Woolworths supermarket and medical centre.
Waiata Shores is at 2 Te Napi Drive, Takanini, was developed by Woolworths New Zealand and has opened progressively since December 2021, when Woolworths started trading. The property is in three titles.
CBRE said Woolworths would take a new 10-year lease over the supermarket on settlement with rights of renewal.
5. Argosy’s Mt Wellington sale, $35.2m
Argosy said in April it had unconditionally sold this property, considered “non-core” due to the highest and best use not aligning with strategy. The sale price reflects a premium of 1.1% above its book value, as at September valuation.
The settlement date is expected to be March 25, 2025.
The funds received will be used initially to reduce bank debt. During the last 12 months Argosy has sold four non-core assets. All sales have been at or above their valuations, Argosy’s NZX announcement said.
Moricz of CBRE said research indicated more buying and selling.
“The interesting thing that our analysis shows is that interest rates are a more important driver of pricing and investment activity levels than underlying occupier market health with vacancy and rents,” he said.
The occupier market is weak and CBRE has been forecasting increasing vacancy and decreasing effective rents for 2024-25.
“But the investment market will be getting busier. Some of it will be more motivated sellers who could be having cash flow issues and some pressure to sell from banks etc. Some of it is the closing of the buyer-vendor price gap with lower interest rates.”
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
'Apartments on the site and more than likely offices' – Andrew Moore, CMP Construction.