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View Full Version : NZ Retail property auction result.



fungus pudding
12-03-2010, 06:47 PM
Anyone attend the Bayleys auction ? Touted as 75 million $$ portfolio for sale - there were several retail properties in Auckland and Tauranga. Caught a glimpse of the report on TV's John Campbell show but didn't catch anything about yields. Any info from anyone?

Kees
12-03-2010, 10:04 PM
http://www.propbd.co.nz/afa.asp?idWebPage=8338&idBobDeyProperty_Articles=13875&SID=87064880

try this

winner69
13-03-2010, 07:52 AM
Amazing prices the vendor got eh

So commercial prop one of the safest investments around at the moment based on these yields

fungus pudding
13-03-2010, 08:13 AM
http://www.propbd.co.nz/afa.asp?idWebPage=8338&idBobDeyProperty_Articles=13875&SID=87064880

try this

Thanks for that. Suprisigly low yields - especially while the govts. policy on depreciation is still up in the air.

Steve
13-03-2010, 08:27 AM
Thanks for that. Suprisigly low yields - especially while the govts. policy on depreciation is still up in the air.

Of course, basing an investment decision solely on the tax benefits is a novice mistake...

fungus pudding
13-03-2010, 08:48 AM
Of course, basing an investment decision solely on the tax benefits is a novice mistake...

True, but it will have an effect if they proceed as indicated (although I'm starting to have my doubts that depreciation will be disallowed). It certainly drives residential property investment which in my neck of the woods has come to a screeching halt. I've come across the odd residential investor genuinely delighted and glowing with cheer because they're losing money. :confused:

loofa
13-03-2010, 09:49 AM
Suckers?
Most of the listed PTs have passing yields above 8% with more substantial tenants as well.

fungus pudding
13-03-2010, 10:01 AM
Suckers?
Most of the listed PTs have passing yields above 8% with more substantial tenants as well.

Yep. And with the real advantage of being PIEs. They're a gift, but don't tell anybody.

loofa
14-03-2010, 11:11 AM
Yep. And with the real advantage of being PIEs. They're a gift, but don't tell anybody.

And as I pointed out on another thread , if you have the bottle, you can gear them up with a mix of shares and CFDs.
This is because although the yield is 10%+ the financing cost is much lower and it works if you are a trader.

fungus pudding
14-03-2010, 02:29 PM
And as I pointed out on another thread , if you have the bottle, you can gear them up with a mix of shares and CFDs.
This is because although the yield is 10%+ the financing cost is much lower and it works if you are a trader.

Yes, but if you're an income investor just be aware of the sting in the tail of those dividend reinvestment plans, particularly when shares are selling, and therefore being issued to the scheme participants, at a huge discount to NTA.

Arbitrage
15-03-2010, 10:18 AM
There was a lot of positive spin about this sale but in the end only one third of the properties sold. Check out these comments about the state of commercial property investment in NZ : http://www.3news.co.nz/Landlord-wars-loom-for-commercial-property-sector/tabid/415/articleID/146329/Default.aspx?ArticleID=146329

Many commercial yields are calculated from short term leases, or lease valuations and not long term tenancies. Drive around Auckland or other cities and look how many "For Lease" signs are up. The empty floor space will take years to fill and there must be a lot of nervous commercial landlords out there at the moment with empty properties and paying big mortgages.

whatsup
15-03-2010, 03:03 PM
http://www.propbd.co.nz/afa.asp?idWebPage=8338&idBobDeyProperty_Articles=13875&SID=87064880

try this


Just IMHO be very careful as AMP is building just down the road a very large shoping center that could when totally completed make the Westgate a bit of a second/third/forth grade center as AMP could poach all the name tenants once the leases at Westgate expire, its happened before and could happen again!!!