Lots of news but little good cheer for property firms

By ANNE GIBSON property editor

Varying views on the fortunes of the property business are offered in four annual reports issued by property companies.

The one factor unifying all four - from Kiwi Income Property Trust, Kiwi Development Trust, Colonial First State Investments and Dominion Funds - is that none predicts a bright future.

They show a detailed examination of their portfolios, positions in the market and outlooks, and comment on the state of the industry.

Kiwi Income Property Trust's report shows assets valued at $670 million including investors' funds of $457 million.

Its two major developments are the Sylvia Park site at Mt Wellington and the Maritime Square office park.

The application to re-zone Sylvia Park was approved, and resource consent is expected this financial year.

Kiwi is half-owned by Australia's Lend Lease Corporation and the two companies are working together on Sylvia Park.

The New Zealand office of Bovis Lend Lease is lending its expertise on retail centre planning.

The Maritime Square development is still under construction at the Viaduct Harbour.

Kiwi's most valuable asset is Northlands Shopping Centre in Christchurch, valued at $80.8 million, followed by the North City Shopping Centre in Porirua ($80 million) and the Majestic Centre in Wellington ($68 million).

The annual report from the associated Kiwi Development Trust values its major asset, the Royal & SunAlliance Centre in Shortland St, at $207 million.

The valuation was done by CB Richard Ellis and is based on the present 79 per cent leasing of the building. Fully leased, the building would be worth $217.5 million, says CB Richard Ellis.

Dominion Funds' investors report says it has 59 properties with 146 tenants, valued at $310 million.

Dominion has 27 syndicated funds, with 7000 investors, who get

more than $15 million annually through interest, capital reductions and dividends.

Chairman Alastair Hasell said 1999 was a "challenging" year for commercial property, but buildings in Wellington, Christchurch and Dunedin had no vacancies.

The AC Nielsen building in Takapuna had ground floor vacancies when Dominion bought it, but was leased out soon afterwards.

Grim forecasts for Auckland's central business district persuaded newcomer Colonial First State Property Trust to invest in offices on the fringe.

Listed on the Stock Exchange on June 3 last year, Colonial said it had good reasons for the property investments it made, including over-supply of space and traffic and parking problems in the CBD.