The Dunedin City Council's new district plan requires all new buildings in coastal hazard areas to be relocatable in the event of sea level rise. Developers criticize this rule as being unrealistic without providing guidance on how or who would pay for relocation. The Property Council also argues the plan has too many small fragmented commercial and industrial zones that do not work well. It wants the zones streamlined to provide more development opportunities and attract investment to Dunedin. Confidence in the Christchurch construction market is declining as the rebuild program winds down, while optimism in Auckland is rising driven by the strong housing market.

1. Searisefearspromptpush
forrelocatablenewbuildings
Flurryofcommercial
salesinWellington
Chris Hutching
The Property Council’s Otago chapter says Dune-
din City Council’s Second Generation district plan
(2GP) requires new buildings in hazard areas to be
relocatable. Dunedin appears to be the latest city to
attempt to introduce new flood hazard rules based
on various reports.
Christchurch City and Kapiti have both been
forced to backtrack on prescriptive rules they based
on engineering reports, which have been criticised
as alarmist and worst case scenarios.
“In a coastal hazard overlay zone, new build-
ings to be used for sensitive activities must be re-
locatable, except buildings such as garages that do
not have people regularly present,” the plan states.
Property Council Otago spokesman Stephen Cairns
says the rules, in combination with other chapters,
would capture new housing, hotels and service sta-
tions to be designed and built as relocatable.
He says the plan lacks rigorous analysis and
must be revisited.
“How can developers possibly build develop-
ments now that are supposed to be relocated if there
is a sea rise? Where are we going to go and how are
we going to do it? Who is going to pay for it?
“The plan offers no other explanation or solu-
tion other than just stating that these buildings must
be relocatable, making it economically unrealistic
to build them. The council provides no guidance
whatsoever.”
The Property Council says the 2GP must also
simplify and relax overly-prescriptive zoning rules
and combine commercial, mixed-use and industrial
together. The council says the plan has too many
small and fragmented zones for industrial, commer-
cial and mixed use purposes that are often isolated
and don’t work.
The Property Council believes streamlining the
number of commercial and mixed use zones and
other changes will create greater opportunities for
development and investment.
“In their current form, we struggle to see how
the zoning restrictions will deliver sufficient and
affordable land supply or encourage more people,
businesses or capital into Dunedin.”
The city is experiencing a commercial property
transformation due to greater demand for prime of-
fice and industrial property. Dunedin City must en-
sure the plan provides the right investment signals
to aid this.
“This means having clear and realistic expecta-
tions about heritage protection and what can and
should be protected and whether building owners
can afford this.
“Until now, characterising a heritage property
has been based on either just aesthetics or when it
was built without looking at its risk profile or eco-
nomic implications. This approach does nothing to
mitigate costs or even preserve truly valued historic
buildings.
“Dunedin cannot continue with the status quo.
The council must review the 2GP to come up with
enabling and flexible policies that are bold and in-
novative and attract people and businesses to Dune-
din.”
The Otago chapter estimates commercial prop-
erty in Dunedin has a value of nearly $20 billion.
NBR NZ PROPERTY INVESTOR IS A PUBLICATION OF THE NATIONAL BUSINESS REVIEW
Chris Hutching
Wellington’s commercial market
has seen a flurry of end of year
activity.
Datacom Hse on Jervois
Quay has sold for $47 million to
local investors Andrew Cotterell,
Peter Dowell, Murray Harden and
Charlie Zheng of Cornerstone
Investments.
The vendor was AMP Capital
Wholesale Office Fund and the
deal was brokered by Bill Leckie.
He was also involved in nego-
tiating two deals for Cornerstone
last year – Craigs Investment Hse
for $15.8 million, and the Kirk-
caldie & Stains’ Harbour City Cen-
tre, in Lambton Quay, for $45.85
million. Meanwhile, John Persico
of JLL has brokered the sale of
a large industrial site at 120 Hutt
Park Rd, Seaview, to its former
owner, Building Solutions.
A syndicate of investors
managed by Anaro Investments
purchased the 120 Hutt Park
Road site from Building Solutions
in 2001 for $7.3 million.
Building Solutions has now
repurchased the Hutt Park Road
property for $8.5 million.
The company also owns an
adjacent block of land, which may
be redeveloped.
The Building Solutions site
over 2.2ha comprises a large
purposebuilt warehouse and office
development constructed in 2001.
Turners occupies the prop-
erty with a lease that provides a
stepped annual rental income,
currently at $719,563.
Mr Persico says Seaview and
Gracefield were historically char-
acterised by government stores,
wool stores and heavy engineer-
ing work shops.
New design build activity with
new occupiers has changed its
NOVEMBER 30 2015
SallyLindsay
The outlook for New Zealand’s
building and infrastructure in-
dustry is defined by a tale of two
very different cities; the pow-
erhouse that is Auckland, and
Christchurch, a city facing re-
build fatigue five years on.
Auckland’s optimism has
risen, while the Christchurch
market shows a steady decline
in workload expectations, AE-
COM’s six-monthly nationwide
construction market sentiment
survey shows.
The survey highlights a sub-
stantial softening in the Christ-
church infrastructure sector,
down 10 percentage points to
29% of respondents expecting to
see an increase in workload.
The continued decline in
optimism, down nearly 30 per-
centage points in a year, reflects
recognition that much of the
rebuild infrastructure activity is
complete and the programme of
work is now changing gear.
Expectations in the Christ-
church buildings market have
also moderated; 58% of respon-
dents expect growth, down from
80% in May.
This is because of the Transi-
tionRecoveryPlan.Thismeansa
Buildingandinfrastructure–Auckland’s
optimismup,Canterbury’sdown
To page 2
NBR NZ PropertyInvestor

2. NBR NZ Property Investor 2
TaupoMotorsportbecomesBruce
McLarenMotorsportPark
Chris Hutching
Taupo Motorsport Park will now be known as
Bruce McLaren Motorsport Park.
The rebranding comes following refinancing
from NBR Rich Lister Richard Izard.
Executive director Tony Walker says TMP,
the company which owns and operates the
motorsport park, negotiated with Patricia and
Amanda McLaren, widow and daughter of the
late Bruce McLaren.
The business plan for the park has also pro-
gressed with unit titling of property surrounding
the track and conclusion of a couple of sales.
Mr Walker says his team also required agree-
ment of McLaren Technology Group in the UK
where about 3000 people are employed.
McLaren Technology Group includes
McLaren Racing and the high-performance
sports car business, McLarenAutomotive.
The New Zealand race-car designer, driver
and engineer was a winner of four World Cham-
pionship Formula 1 Grands Prix. He also won
the 24 Hours of Le Mans in 1966 alongside fel-
low Kiwi and now Taupo resident Chris Amon
and the Can-Am Challenge Cup.
He was also the first driver to win theTasman
Cup in 1964 against the likes of the late Sir Jack
Brabham, the late Graham Hill, and his long-
time NZ team mate, the late Denny Hulme.
Mr McLaren died at Goodwood Circuit in
England in June 1970 while testing one of his
cars.
The team at Bruce McLaren Motor Racing,
which he founded in 1963, went on to become
one of the most successful teams in Formula 1
history winning 20 world championships and
more than 180 races.
Daughter Amanda McLaren who lives in
Surrey, England provided a written statement
saying the naming of the park is a tribute and
the motorsport recognition in her father’s home
country has been a long time coming.
TMP chairman Mr Izard says the McLaren
name is now one of the world’s leading brands
– bigger than theAll Blacks orAmerica’s Cup.
The motorsport park’s future was assured
following a financial and management re-struc-
ture in mid-2015 that kept the ownership of the
park in local hands with a new board and man-
agement.
The refinancing took place against a takeover
bid by another racing millionaire – Tony Quinn.
A few weeks before the track was placed for
tender in early 2015, Mr Quinn had offered to
buy the debt-laden company for $3.6 million
He told shareholders he would inject cash
and work his entrepreneurial magic to redevelop
the park.
But the shareholders included members of
the local Taupo Car Club with a lease agreement
for use of the track who were unimpressed and
sought other buyers.
The 80-year old Mr Izard was a shareholder
in Taupo Motorsport Park, who came forward
with the rescue package.
His fortune is valued at about $80 million.
He owns property in Auckland, a portfolio of
shares, and set up Izardair in 2011.
He has also proved a generous philanthropist
with a $1.8 million donation toward the con-
struction of the Izard Hospice House in Taupo.
Auckland’soptimismup
shift in decisionmaking functions and respon-
sibility to local leadership, with co-operation be-
tween central and local government over a period
of five years, to ensure momentum is maintained.
InAuckland, the housing market, among other
factors, continues to be a key for optimism across
the industry.
Despite attempts to cool the market, including
lending restrictions and new requirements for for-
eign investors, the average value increases remain
significant with the region’s median house price
now above $900,000.
Meanwhile, 61% of respondents expect to see
growth in Auckland infrastructure projects over
the next three years, up from 55% six months ago.
The energy sector has also seen a leap in con-
fidence for anticipated workflow in Auckland, up
from 13% to 40% in the latest survey.
AECOM NZ managing director John Bridg-
man says greater coordination between central
and local government will be essential to support
the strong economic impact inAuckland.
Sector confidence is being challenged by skills
and materials shortages remain. Forty percent of
respondents say addressing the shortage of skilled
labour and risk of materials shortages are their
biggest challenges, along with retention and qual-
ity of employees.
In the latest survey, big data and smart tech-
nology have emerged as major issues as industry
players assess how they will affect the way they
do business.
Most respondents believe there will be a sub-
stantial change to how business operates within
two to six years. However, divergent viewpoints
are apparent; assessments range from significant
change and industry disruption, to it’s just hype
and change won’t occur as quickly as anticipated.
From page 1
PUBLISHER’S INFORMATION
Editor
Deborah LaHatte
DDI: 09 912 2712
nzproperty@nbr.co.nz
Reporter
Chris Hutching
DDI: (03) 981 1050
chutching@nbr.co.nz
Reporter
Sally Lindsay
DDI: (09) 912 2720
slindsay@nbr.co.nz
Advertising
Tinaz Karbhari
DDI: 09 912 2727
tinaz@nbr.co.nz
Designer
Christel Heyneke
Subscriptions
Glenn Churchill
Freepost 2519
PO Box 145,
Auckland, 1015
Ph: 09 09 926 5084 or 0800THE NBR (849 627
Email: customerservices@nbr.co.nz
Accounts
NBR NZ Property Investor is published by Fourth
Estate Holdings (2012) Ltd
Level 3, Achilles House
8 Commerce Street
Auckland, New Zealand
PO Box 1734, Auckland
Ph 09 307 1629, Fax 09 373 3997
ISSN 1179-6103
Flurryofcommercial
salesinWellington
character to storage, transport
and distribution companies such
as TNL, Hookers, Linfox and Peter
Baker Transport. Research from
JLL’s latest Pulse report shows the
Wellington industrial market has
performed well over the first half of
2015, with a number of leases com-
pleted in Seaview and Gracefield
pushing prime rents higher.
This property is in a Special
Business Zone which accommo-
dates large scale business opera-
tions and industrial activities such
as the use or storage of hazardous
substances.
From page 1

3. 3 NBR NZ Property Investor
Techboomchangingfaceof
officeproperty
Sally Lindsay
Arapid rise in the number of tech businesses and NorthAmerican compa-
nies opening in New Zealand has boosted the demand for serviced office
space.
Multinational firm Servcorp, which specialises in serviced offices, says
the demand for prime managed office space is increasing as NorthAmeri-
can search engine and social media companies and B2B cloud software
providers want to expand with minimal expense, establishment time and
risk.
Servcorp spokeswoman Suzanne Scott says that what was once the
domain of small and medium businesses has become the norm for global
corporations wanting to enter a market rapidly and efficiently.
“They are familiar with the plug and play set-up of managed offices
allowing them to enter the New Zealand market rapidly,” Ms Scott says.
The need for flexibility extends to the office lease. “Tech firms know
their head count can change dramatically within a short time and need an
option with scalable infrastructure to support their growth,” she says.
“We are also noticing that the IT and media businesses are becoming
leaner in terms of their physical space requirements, with the office becom-
ing a place to network with peers in sector specific hubs.”
Ms Scott says Kiwi businesses looking to enter new markets are also
embracing this model. “Increasingly we are seeing Kiwi companies using
serviced offices as a bridge into Asian markets, particularly China, where
maintaining a high-profile office location is fundamental for portraying a
successful brand.
“The space is always in prime commercial locations and helps create
the impression that Kiwi businesses have an existing foothold in that mar-
ket with prospective customers.”
Ms Scott says the company’s latest New Zealand acquisition is the 26th
floor of the PwC building in downtown Auckland, which has doubled its
capacity in the city.
Meanwhile Savills’latest global cities report shows creative and digital
businesses have been flourishing while financial corporations have been
struggling to rebuild in the wake of the global financial crisis.
As the finance and service revolution of the 20th century gives way to
the digital age of the 21st century, there is a big difference in most world
cities between rents paid for the creative or digital scale-up and a hedge
fund, although the gap is closing.
This is because the size of the digital and creative sector is growing
faster than the finance industry in many cities. It takes time for the nature
and location of office stock to change from the type of large floorplate cor-
porate premises required for banking to smaller, flexible and more dynamic
space required by creative and digital tenants. In Sydney, creative industry
companies are paying more per person for office rents than finance com-
panies are.
Relatively low demand for financial offices in Sydney means the city
has some of the cheapest rents for this sector among world cities, paying
well below the world average per person.
While office rents in the financial sector of the 12 global cities Savills
monitors fell by an average of 1.8%, the creative sector offices saw growth
of 8.6%.
Ecancommissionersslightlycheaper,NgaiTahu
seeksgreaterunelectedpowers
ChrisHutching
Government-appointed Environment Canterbury commissioners cost Canta-
brian ratepayers slightly less this year.
Hawke’s Bay-based chairwoman Dame Margaret Bazley’s remuneration
slipped from $220,312 in the 2013/14 year to $205,627 this year.
Commissioner David Bedford overtook David Caygill as the next high-
est paid apparatchik at $165,216 ($169,012) with Mr Caygill’s pay falling to
$144,108 ($182,403).
The overall cost to ratepayers was $946,210 ($1.04 million last year).
The last elected councillors in 2009 were paid approximately $50,000
each. The pay rates are published in the latest annual report.
During the year the government replaced retiring commissioner Donald
Couch with another Ngai Tahu representative and a former elected council-
lor, Elizabeth Cunningham.
Ngai Tahu also featured during this week at select committee hearings
into the government’s half-democracy bill for Ecan.
Ngai Tahu stood out as one of the few submitters to support the govern-
ment scheme for appointing half of the Ecan board members and allowing
some to be elected in local body elections next year.
The Ngai Tahu support is testament to the cultivation by Dame Bazley
and her team who lace speeches and reports with special reference to tribal
interests.
NgaiTahu now enjoys representation as-of-right on a host of related plan-
ning entities in Canterbury including a resource consent urban design panel
vetting all new Christchurch buildings, three seats on the Greater Christ-
church Urban Development Strategy, and various other statutory and con-
sultation bodies.
The Ngai Tahu submitter told the select committee a return to democracy
would threaten the tribe’s position as a treaty partner.
Ngai Tahu wants the current half-democratic structure to remain even
beyond the purview of the current Bill to 2019 – with the government ap-
pointees to include three Ngai Tahu representatives of the six government
appointees.
Meanwhile, the annual report shows Ecan taxed unrepresented Canta-
brian ratepayers $87 million, the bulk of it from urban ratepayers who were
charged an additional 4.7% in rates during the 2014/15 year, compared with
the annual inflation rate of 1.5%.
Another $27 million was gleaned from government grants, and in ad-
dition to other sums from various activities, the overall revenue was $167
million. Expenditure was $157 million, leaving a “surplus” of $10 million.
One of the biggest items of expenditure was the Canterbury Water Man-
agement Strategy, which cost slightly more than budget at $19 million for
the year.
Fifty-six employees were paid between $100,000 to $379,000 which
compares with 47 staff last year.
NEW SERVICED: offices in Auckland’s downtown PwC tower

4. NBR NZ Property Investor 4
Rurallistingssinktofive-yearlow
Chris Hutching
Rural property listings have fallen to
their lowest level in 15 years, accord-
ing to NZR Real Estate director Peter
Barnett.
He has surveyed the number of ad-
vertisements in national rural publica-
tions.
The last week in October is typi-
cally the peak advertising week of the
year for farms in these publications.
His analysis includes pastoral,
cropping and dairying farms bigger
than 20ha – excluding lifestyle proper-
ties.
Mr Barnett says the listings shortage is good news for sellers because the
lower number of listings means fewer choices for buyers.
Many of the properties will go to ten-
der or auction in the next five weeks or so.
Most recent sales data from the Real
Estate Institute shows there were 12 more
farm sales (+3.5%) for the three months
ended October 2015 than for the three
months ended October 2014. Overall,
there were 358 farm sales in the three
monthsendedOctober2015,comparedto
337 farm sales for the three months ended
September 2015 (+6.2%), and 346 farm
sales for the three months ended October
2014.
There were 1731 farms sold in the
year to October 2015, 9.9% fewer than
were sold in the year to October 2014.
Compared with October 2014 the REINZ All Farm Price Index fell by
5.9%.
AverageAucklandresidentialreturnseaseto3.6%
ChrisHutching
Average rental returns on the median sales price
in Auckland has slowly trended downward since
June 2013 as property prices rose faster than rents.
Crockers estimates the average return for
Auckland rental properties is 3.6%, down from
4.01% in October 2014.
The returns calculations do not incorporate in-
creases in capital value.
In the latest Crockers Property Investment In-
dexsurveyinassociationwithIPSOS,nearlytwo-
thirds of the owners and landlords interviewed
feel rental prices are fairly priced, while nearly a
third believe rents are below fair price.
Nearly half are not planning to increase rents
within the next six months, while 42% anticipate
an increase of 3% or more.
Increases in costs associated with the rental
property – rates, insurance and maintenance – are
all likely to contribute to a decision to increase
rents. An increase in interest rates is also another
factor.
Nearly half the investors and landlords inter-
viewed (45%, down six points) are not planning
to increase rents in the next six months.
Most of those planning to increase rents are
anticipating an increase of 3% to 4%.
An increase in local rates is most likely to lead
to an increase in rents (72% of respondents, up 8
points) but other costs like insurance and prop-
erty maintenance also play a part. Compared to
the previous survey in July14, significantly fewer
respondents are saying an increase in interest
rates would influence them to increase the rent
on their investment property.Average rents across
the eastern suburbs sit above the average for the
greaterAuckland region (Pukekohe to Rodney).
The average price for a two-bedroom dwelling
in the eastern suburbs is on a par with the average
for three-bedroom dwellings in the greater Auck-
land region.
“Since 2011 we see consistent increases in
rents across regions, two-bedroom prices in-
creasing 19% to 22% and three-bedroom prices
increasing 14% to 19%,” researcher Kim Sinclair
says. “This month the Auckland Rental Property
Performance Index is up sharply, with a signifi-
cant shift away from those who think their invest-
ment performance will get worse over the next 12
monthstothosewhothinkitwillremainthesame.
“The Auckland Rental Property Investment
Index is also up sharply this quarter, with a sig-
nificant shift from those planning to reduce the
size of their property investments over the next 12
months to those planning to make no changes to
their property investments.
“These results suggest that the new property
rules that came into effect in October have started
to have an impact on the market, but perhaps not
as expected – given that this shift in optimism sig-
nals an expectation that the market is not going
to retreat.”
Auckland rents have returned to the August
peak of $446, while two-bedroom rents across
New Zealand increased to their highest level.
Rents for three-bedroom properties in Auck-
land dropped to $570 after peaking at $580 in
August. .
Farms advertised for sale
Number of farms advertised for sale in the last week of october
in main rural property papers.
Sources: NZ Farmers Weekly & NZ Farmer/Straight Furrow publications
2007 2008 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
180
200
Farms advertised for sale
Number of farms advertised for sale in the last week of october
in main rural property papers.
Sources: NZ Farmers Weekly & NZ Farmer/Straight Furrow publications
2007 2008 2010 2011 2012 2013 2014 2015 2016
0
20
40
60
80
100
120
140
160
180
200
HollyLearepaysalldebt,plansexpansion
ChrisHutching
The owners of Fendalton retirement village Holly
LeasaytheyhaverepaiditsdebtstotheSouthland
Building Society after selling other investments.
The Christchurch village, built in 2008, was in
the news earlier this year because of its financial
difficulties.
The McLean Institute CharitableTrust that op-
erates Holly Lea entered into a 50:50 partnership
agreement with retirement village developer Re-
tirementAssets. In addition to reducing bank debt,
the partnership deal included a finance restructure
and “strengthening” the management team.
Graham Wilkinson, managing director of
RAL, says as well as repaying the bank in full,
RAL has installed Juliane Brand as manager of
the village.
“Juliane is a respected and experienced age
care facility manager and is well advanced in her
studies for a masters of public health at Otago
University,” Mr Wilkinson says.
“We have also secured John Clarke, a general
manager of hotels for 20 years, including Noah’s
Christchurch and Queenstown’s Millennium Ho-
tel, as our business manager for both Holly Lea
and The Russley Village.”
Under the new manage-
ment broom, Holly Lea has
sold several apartments and
plans are well under way
for building a hospital and a
memory-assisted unit.
“We anticipate lodging for building consent
shortly and breaking ground in the second quarter
of 2016.”
Built on the former site of the historic Holly
Lea mansion, Holly Lea Village is the only retire-
ment village in the middle of Fendalton.
Graeme Wilkinson

5. 5 NBR NZ Property Investor
Opportunitytoownasliceof
prehistoricNewZealand
SallyLindsay
Aprivate Stewart Island eco-sanctuary regarded
as being of global significance is on the market.
The Dancing Star Reserve, a 172ha property,
which adjoins Rakiura National Park, has been
a private, protected ecological refuge for native
flora and fauna for the past 15 years.
As well as encompassing mountainous ter-
rain, garden meadows, five beaches and some
of the oldest native forest in New Zealand, the
property features a high-tech, ecologically en-
gineered fence to exclude predators, as well
as state-of-the-art electronic and video surveil-
lance.
The listing is being touted as an opportunity
to own a piece of prehistoric New Zealand and
turn it into a top tourist destination, an exclusive
eco retreat or an education centre.
The property is one of the largest pieces of
privately-owned land on Stewart Island.
Wildlife preservation and bio-
diversity conservation have been
the core focuses of the property’s
owners, the California-based, not-
for-profit Dancing Star Foundation.
The refuge has more than 126 na-
tive species and contains one of the
highest concentrations of kiwi in
New Zealand.
Buildings within the Dancing
Star Reserve include a 230m² his-
toric barn and an environmental ed-
ucation centre with a shower block
and kitchen. A fulltime conserva-
tion manager lives on site to main-
tain the property and its inhabitants.
Theownershaveanaskingprice
of $2.25 million on the property.
New Zealand Sotheby’s broker Matt Finni-
gan says the property will appeal to a buyer who
would like to appreciate and preserve what the
land was several hundred years ago. “There are
very few places like this remaining in New Zea-
land – or the world, for that matter.”
RichListerRooneyknocked
backonhighcountryscheme
Chris Hutching
An irrigation scheme proposed by Canterbury businessman and Rich
Lister Gary Rooney has been refused resource consent.
He and business partners wanted to build two irrigation and hydro
electric dams in the Lewis Pass in Canterbury’s high country.
It would have used the Kakapo Brook, which flows into the Hope
and Boyle Rivers and ultimately the Waiau River, one of Canterbury’s
large braided rivers.
The area is well known to outdoor recreationists, and at the margins
of viable farming. The application was from Rooney Farms and Main-
power NZ, a north Canterbury electricity company.
Rooney Farms owns Glen Wye Station comprised of 20,830ha
of Crown pastoral leasehold land and 4780ha of freehold, with about
800ha of developed flat land.The applicants were seeking 1600L/s from
Kakapo Brook, flat-lining Kakapo Brook downstream of the take, for
nearly 80% of the time.
But the primary reason for refusal of the scheme is the potential ef-
fect on other abstracters of water downstream.
The Hurunui catchment is subject to water allocation rules set down
in the Hurunui Waiau Regional River Plan.
The report of the resource consent commissioners Mike Freeman,
Paul Rogers, and Craig Welsh contains strongly worded reasons for the
decision.
“There are a number of significant adverse effects, such as those on
natural character and reliability of supply for existing abstractors, where
we have concluded that the adverse effects will be more than minor.
“In addition, there are a number of fundamentally important effects,
specifically those on instream aquatic life including macroinvertebrates,
periphyton and fish where we are not satisfied that the adverse effects
will be minor.
“These include – the grant of all of the water permits applied for, due
to the state of full allocation, will result in the over allocation of water in
this reach; the proposal could have more than minor adverse effects on
the mauri of the waterbody particularly the Kakapo Brook.
“We cannot conclude with adequate certainty that the adverse effects
on river bed birds, particularly native birds will be minor.
“We cannot conclude with adequate certainty that the overall adverse
effects on the Lower Dismal Valley swamp will be minor.
“Overall, having regard to the components of natural character we
have described through the decision, the significance of some of the
changes and uncertainty with respect to outcomes on aquatic life, bed
substrate and riparian margins and taking into account the proposed con-
ditions we consider the adverse effects on natural character will be more
than minor.”
The water abstracted from Kakapo Brook would have been stored in
two out-of-channel storage dams capable of holding up to 700,000 and
300,000 m3 of water.
A recommendation to the panel from Environment Canterbury staff
against the scheme identifies these issues:
n the application was deemed non-complying under the former river
plan and prohibited activity under the proposed and operative versions
of the HWRRP; and
n the proposal was also contrary to the National Policy Statement for
Freshwater Management (2014).
Forty two public submissions were received. Five were in support,
32 against, and the other five neither in favour or against.
Waimate businessman Gary Rooney entered the NBR Rich List with
a value of $90 million based on his earthmoving business.
Mr Rooney has also been involved in the $82 million Rangitata
South Irrigation Scheme, which is the country’s biggest purpose-built
storage facility for irrigation.
MAMAKU POINT on Stewart Island’s Dancing Star Reserve
REGENERATING NATIVE forest and ancient rimu at eco-sanctuary

6. NBR NZ Property Investor 6
HarcourtsgoestoCanada
Harcourts’ just departed New Zealand chief executive,
HaydenDuncan,isgoingtoleadthecompany’sfirstforay
into Canada. Mr Duncan, who left his role at the end of
October, is moving to Canada early near year to estab-
lish a network of Harcourts franchises out of Vancouver.
Canada will be the 10th country in which Harcourts has
offices.MrDuncansaystherearemanyreasonswhyCanadaisanobviouschoice
for Harcourts.“In many ways it is similar to New Zealand and Australia, plus it is a
Commonwealth country.“The crucial difference is that consumer expectations
ofrealtorsandtherealestateindustryinCanadaaremuchlowerthantheyarein
New Zealand,”Mr Duncan says. He says that gives the company an opportunity
tosetanewlevelofexpectationforrealestatebuyersandvendorsinCanada.
SurplusPorirualandforsale
Thirty blocks of Porirua City Council land are for sale.The land parcels were iden-
tified in a recent review and include both large sections and small strips. The
stri[ps are likely to be sold to neighbours. Ken Douglas, chairman of the coun-
cil’s property subcommittee, said the parcels of land were identified during a re-
cent review. The priciest sections are the empty grass area at 7-9 Prosser St and
7 Serlby Pl in the city centre. The Prosser St land has a government valuation of
$713,000 and the city centre building, which needs to be earthquake strength-
ened, is worth $630,000. Other properties include a car park behind the Mobil
petrol station in Lyttelton Ave, part of Mungavin House and sections in Ocean
Pde, Pukerua Bay, Driver Cres, Cannons Creek andWhitehouse Rd,Titahi Bay. Re-
serve land for sale includes Moray Park in Papakowhai, Owhiti Park inTitahi Bay,
LimerickReserveinAscotParkandPenrynReserveinCamborne.
$10mperformingartscentre
LandisbeingclearedatKapitiCollegeasthefirststageofa$10millioncommuni-
ty performing arts centre gets under way. It will include a 348-seat performance
theatre, a black box theatre to seat 100, and a box office, teaching and rehearsal
spaces, such as a drama and dance studio, music and film-making classrooms,
practicerooms,andarecordingstudio.
CentrePort‘plentybigenough’forpubliclisting
Horizons Regional Council chairman Bruce Gordon has proposed publicly list-
ingWellington’s CentrePort. Mr Gordon raised that in a report to his council last
week. Horizons and Greater Wellington Regional Council had met with Centre-
Port last week to discuss the port’s performance. CentrePort had been having
a“very good year”and paid a special dividend, Mr Gordon said. Horizons owns
23.08% of the port, while Greater Wellington Regional Council is the majority
shareholder with 76.92%. He said CentrePort had reached a turnover figure that
would make it eligible to be a publicly listed company. Other port companies
had listed at $75 million and $40million, while CentrePort had a turnover of
nearly$75million,Gordonsaid.Hesuggestedlistingitwouldbeonewaytokeep
centralgovernmenthandsoffit.
Napier’sartdecobuildingslessshaky
AucklandUniversity’scivilandenvironmentalengineeringdepartmentsays
Napier’s heritage art deco buildings may be safer in an earthquake than has pre-
viouslybeenthought.Napier’scentralareawasrebuiltafterthedevastating1931
Hawke’s Bay earthquake, and commercial property owners are now struggling
to bring 80-year-old buildings up to seismic code. Stricter rules since the Canter-
bury earthquakes has put some art deco buildings under threat. But the report
concludesthecity’sbuildingstockmaybemorerobustthanpreviouslythought,
becausetraditionalseismicsurveyinghasnottakenallaspectsofitsconstruction
into consideration.The report said while Napier’s art deco buildings were“of im-
mensevaluetotheculturalandcivicheritageoftheHawke’sBaycommunity,the
reinforced concrete buildings’abilities to withstand earthquakes was“generally
underratedinsimple,force-basedassessments”.
BRIEFS

7. 7 NBR NZ Property Investor
Palmerston North
Where: 602Tremaine Ave
Details: A 840m2 industrially-zoned
building on 1,762m2 with three sepa-
rate tenancies sold for $925,000.
Agents: Karl Cameron, LewisTown-
shend, Bayleys Manawatu
Marton
Where: 12-14 High St
Details: A two-level 440m2 building on
a 784m2 site sold vacant for $50,000.
The ground floor is commercial space
with residential accommodation
upstairs with two bedrooms, lounge,
kitchen and bathroom.
Agent: Dave Looney, Bayleys
Manawatu
Foxton
Where: Duncan St & Ladys Mile
Details: A 26,000m2 industrial complex,
which was formerly the Feltex Carpet
factory, on 6.6ha sold for $925,000.The
current gross rental is $200,000 a year
with 9600m2 vacant.
Agents: Karl Cameron, LewisTownsh-
end, Bayleys Manawatu
Wellington
Where: 25Taranaki St
Details:The Zibbibo Restaurant build-
ing, formerly theTaranaki St Police
Station, with Zibbibo leasing back the
gound and first floors, the basement (
former police cells leased as Hashigo
Craft Beer Bar and with air rights above
the building transferred to the rear
vacant carpark site and a $1,940,000
valuation as at September 1 this year
has been sold, with settlement pend-
ing.
Agent: Carl Hastings, Paul Hastings
& CO
Where: 155-157Waterloo Road, Lower
Hutt
Details: A confidential party sold
a 1420m2 industrial building with
2746m2 land.
Agent: Dharmendra Mistry, CBRE
SALES
Transactions
Commercial property
listings from NBR NZPI
also appear on
NBR ONLINE
AUCTIONS Auckland
Where: 85 Cavendish Drive, Manukau
Details: A 3893m2 commercial building
plus canopies sold for $10 million on a
7.14% yield on its first time to market
in 20 years. Located opposite the
well-established Manukau Supa Centa
and with 150 plus carparks, it has three
strong tenants: Big Save Furniture,
Reece Plumbing and Smart Marine.
Agents: Gareth Fraser, Charlie Os-
croft, LeroyWolland, Jeremy Barnett,
Colliers International
Christchurch
Where: 207 Harewood Rd and 415
Greers Rd, Bishopdale
Details: A 330m2 residential dwell-
ing converted for business use with
16 parking spaces on a 1328m2 high
profile corner site, in two titles, sold
for $1,180,000 at a 7.1% yield. It has a
new six-year lease to veterinary clinic
Pet Doctors NZ, in occupation since
2007, which is returning $83,500 with
2x4 RoR.
Agents: Nick O’Styke, StewartWhite,
Chris Frank, Bayleys Canterbury
LEASES Auckland
Where: 699 Rosebank Rd, Rosebank
Details: 485 m2 offices including car
parks were leased for $179,360 a year.
Agent: Rick Kermode, Knight Frank
South Auckland
Where: 12 Maich Rd, Manurewa
Details: A 480m2 warehouse was
leased for three years with two-yearly
rent reviews and 2x3 ROR for $51,000a
year net plus GST.
Agents: Piyush Kumar, Peter Migou-
noff, Bayleys South Auckland
Where: 6B Marphona Crescent,Takinini
Details: A 740m2 warehouse, 123m2
offices and 13 car parks on an indus-
trial site were leased for four years at
$137,500 a year net plus GST, with CPI
rent reviews.
Agents: Peter Migounoff, KatieWu,
Bayleys South Auckland
Where: 70 Spartan Rd,Takinini
Details: A 2600m2 yard on an ndus-
trial site, plus 150m2 office space, was
leased for two years for parking trucks
at $66,000 a year net plus GST with
annual rent reviews to CPI and a one
and 1x2 ROR.
Agent: Peter Migounoff, Bayleys South
Auckland
Wellington
Where: Ground Floor,102 112 Lambton
Quay
Details: Lambton Quay Sales Ltd
leased approximately 157m2 retail
space to Estee Lauder Ltd
Agent: Dharmendra Mistry, CBRE
Where: Part Level 5, 342 Lambton
Quay,Wellington
Details: Robt. JonesWellington Assets
Ltd leased approximately 80m2 office
space to DAPAANZ
Agent: Paul Soulis, CBRE
Where: Part Level 2 Solnet House, 70
TheTerrace
Details: Robt. Jones Holdings Ltd
leased approximately 356m2 office
space toTalent 2 Ltd
Agent: Paul Soulis, CBRE
Where: Part Level 2 Central on Midland
Park, 40 Johnston St
Details: Precinct Properties Holdings
Ltd leased approximately 110m2 office
space to Dalton Strategy Consulting
Ltd
Agent: Paul Soulis, CBRE
Where: Part Level 3 Central on Midland
Park, 40 Johnston St
Details: Precinct Properties Holdings
Ltd leased approximately 350m2 office
space to Accenture
Agent: Paul Soulis, CBRE
Where: Simpl House, 40 Mercer St
Details: ZetaWillis Ltd leased approxi-
mately 175m2 office space to Angus &
Associated Ltd

8. NBR NZ Property Investor 8
To submit your
transactions
please email
nzproperty@nbr.co.nz
Agent: Paul Soulis, CBRE
Where: 9 Allens Road, EastTamaki
Details: A 1274m2 warehouse and
283m2 office/amenities were leased.
Agent: Josh Franklin, Knight Frank
South Auckland.
Where: Part of 18 Poland Rd,Wairau
Valley
Details: Some 600m2 warehouse
space with 10 car parks was leased for
$66,000 a year net ($110/m2).
Agent: AdamWatton,Trevor Duffin,
BayleysNorth Shore Commercial
Where: Unit 17, 77 Porana Rd,Wairau
Valley
Details: A 220m2 warehouse was leased
for $27,000 plus GST a year ($123/m2).
Agent:AdamWatton,BayleysNorth
ShoreCommercial
Where:Unit B, 227-229 Bush Road,
Albany
Details:A 595m2 warehouse and 240m2
offices were leased for $113,450 a year
plus GST ($135/m2).
Agents:MattMimmack,AlexStrever,
LaurieBurt,BayleysNorthShore
Commercial
Where:Unit A, 4 RideWay, Albany
Details: Some 225m² of office space
and 107m² of warehouse space., with six
carparks were leased for $50,000 a year
plus GST ($148/m2).
Agents: LaurieBurt,AshtonGeissler,
BayleysNorthShoreCommercial
Wellington
Where: Unit 6, 30 Downer St
Details: Unit 6 is part of an eight-unit
complex in central Lower Hutt. It is a
high stud, 67m2 self-contained of-
fice unit with a toilet and kitchenette
located on its mezzanine level. It was
leased $12,300 a year ($180/m2).
Agent: BenTaylor, NAI Harcourts
Wellington
Christchurch
Where: 29 Dalziel Place,Woolston
Details: A 515m2 new industrial build-
ing was leased for $60,000 plus GST
and opex
Agents: Myles Addington, Elliot
Clayton, Knight Frank Christchurch
Where: U2, 55 Kennaway Road, Christ-
church.
Details: A470m2 new industrial unit
was leased for $72,500 plus GST and
opex.
Agent: CampbellTaylor, Knight
Frank Christchurch.
Transactions
LEASES
Where: Unit 1, 32 Constellation Drive
Details:The 253m2 retail space and
178m2 office space sold for $1,970,000
on a 6.8% yield.The net rental income
from tenants equates to $135,000 a
year.
Terry Kim, Bayleys North Shore Com-
mercial; Harcourts
Where: 2 Sawmill Rd, Riverhead
Details:The 2122m2 vacant industrial
land was sold for $580,000 ($273/m2).
The land is part of the industrial
subdivision of a former Carter Holt
Harvey site.
Agents:Trevor Duffin, Rosemary
Wakeman, Ashton Geissler, Bayleys
North Shore Commercial
Where: Unit 1, 32 Constellation Drive,
Rosedale
Details: A 253m2 shop with 178m2
offices, refurbished in 2013, sold for
$1,970,000 plus GST on a 6.8% yield.
Tenancies’annual net rental income is
approximately $135,000.
Agent: Terry Kim, Bayleys North
Shore Commercial; Harcourts
Where:281A Onehunga Mall, One-
hunga
Details: 128m2 of retail space sold for
$395,000
Agent: Allan Myers, Knight Frank
South Auckland.
Where:9 &13 Lorien Place, EastTamaki
Details:The property was sold for
$2,500,000
Agent: Josh Franklin, Knight Frank
South Auckland.
Christchurch
Where: U10, 31-33Tyne St, Addington
Details:A 96.99m2 office unit sold for
$460,000.
Agents:Sam Stone,Tom Lax, Knight
Frank Christchurch
SALES