NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Property

Sale sparks 'many happy returns' for investors

By True Commercial
NZ Herald·
6 Jul, 2018 05:00 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The office building is in the Spark complex, Cnr Victoria St West and Dock St. Photo / Supplied

The office building is in the Spark complex, Cnr Victoria St West and Dock St. Photo / Supplied

Investors who purchased a $50,000 stake in one of the four buildings in Spark's head office complex less than four years ago in an Augusta Funds Management syndication will receive just over $58,000 back.

The building has been sold to a Singaporean investment company for $77 million, providing investors with a 16 per cent increase on their original equity, says Augusta.

The 7495sq m office building on the corner of Victoria St West and Dock St, in the Auckland CBD has been purchased by SCORE+, a Pan Asian fund managed by Singapore based SC Capital Pte Ltd at a 6.9 per cent yield in a transaction brokered by Bayleys executive director David Bayley, in conjunction with Paul Hain.

According to the fund manager, Gillian Chee, SC Capital has transacted over $US2 billion worth of property purchases in Asia since its establishment in 2004. It is the fund's second acquisition in New Zealand and follows its purchase last year of a large commercial and student accommodation building in Wellington.

David Bayley says SC Capital was keen to establish a presence in the Auckland CBD and looked at a number of options before deciding on the Spark building.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"They liked it because of the quality of the location, property and tenant. It fitted nicely with their strategy of providing a diversified, stable and scalable portfolio to their investors. The property also offered a comparatively higher yield than similar quality properties in Asia and favourable tenancy terms for long term income growth and capital appreciation."

Auckland development company Mansons TCLM completed what was then known as Telecom Place — comprising four 5 Green Star office buildings linked by a large central atrium — in 2014. Augusta Funds Management purchased one of the buildings with a 10-year lease in place to Telecom (now Spark) for $65,186,117. It sold a total of 780 proportionate interests of $50,000 each in the property through Bayleys' Investment Products and Syndication division. Augusta has continued to manage the Victoria Dock Nominees Joint Venture, established in September 2014 to own the building on behalf of the 371 investors who purchased one or more $50,000 interests in it.

These investors have also received an annual income return of 8 per cent, paid monthly out of the property's rental income which increased to 8.5 per cent in August 2017, says Augusta executive director Bryce Barnett.

Advertisement
Advertise with NZME.
The new 4000 sq m office building at 20-22 Pollen St, Ponsonby, which sold for $37,857,304. Photo / Supplied
The new 4000 sq m office building at 20-22 Pollen St, Ponsonby, which sold for $37,857,304. Photo / Supplied

"Investors predominantly invest in our funds for the long term monthly income returns they provide, which are currently well ahead of what they can earn in the bank. However, there is also the possibility in strong commercial property market conditions like we have experienced in recent years of securing a good capital uplift as well.

"In this instance, a very good offer was received for the Spark building which we felt was prudent for investors to consider and they overwhelmingly decided to accept it. Due to the regular stream of fund offerings we now have coming on the market we were able to offer those investors new options to invest their sale funds in and we arranged for a significant number of them to reinvest in the Augusta Industrial Fund which recently closed oversubscribed."

Barnett says most of the increase in value of the Spark building came from the lease's fixed annual rental increases of three percent, although there had also been a slight firming in the property's capitalisation rate from a yield of 7.25 per cent when the property was acquired in 2014 to 6.9 per cent on the latest sale price. He says the successful sale also reflects the value to investors of the strategic partnership that Augusta has established with Bayleys Real Estate.

David Bayley says there continues to be very strong foreign investment interest in the New Zealand commercial property as evidenced by a number of substantial sales to offshore parties this year.

Discover more

Banking and finance

$247m sale, major leasing: Mansons secure year's top deal to date

10 Mar 04:00 PM

Another of these is a completely redeveloped, new 4000sq m office building plus 94 internal car parks on a 1960sq m site at 20-22 Pollen St, Ponsonby which was sold for $37,857,304 at a 5.75 per cent yield on leases to mostly creative and technology tenants.

It was sold on behalf of Triumph Capital to a private European investor making their first purchase in New Zealand through Chris Bayley and Lloyd Budd, Bayleys Auckland, with Tim McEnallay from Venncap Sydney acting as a consultant to the purchaser.

David Bayley, Bayleys.
David Bayley, Bayleys.
Save

    Share this article

Latest from Property

Property

$1.7m auction shock: Dozen buyers fight for shabby South Auckland home

16 May 04:00 AM
Property

Former Cabinet minister’s Northland home sells for around $1.475m

16 May 02:21 AM
Property

Local family snaps up trophy home for $5.5m after beating overseas buyers

16 May 12:08 AM

Deposit scheme reduces risk, boosts trust – General Finance

sponsored
Advertisement
Advertise with NZME.

Latest from Property

$1.7m auction shock: Dozen buyers fight for shabby South Auckland home

$1.7m auction shock: Dozen buyers fight for shabby South Auckland home

16 May 04:00 AM

Brother and sister "over the moon" after property soars past the reserve.

Former Cabinet minister’s Northland home sells for around $1.475m

Former Cabinet minister’s Northland home sells for around $1.475m

16 May 02:21 AM
Local family snaps up trophy home for $5.5m after beating overseas buyers

Local family snaps up trophy home for $5.5m after beating overseas buyers

16 May 12:08 AM
Fletcher reveals restructuring, combines NZ/Australian divisions

Fletcher reveals restructuring, combines NZ/Australian divisions

15 May 09:31 PM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP