Quote Originally Posted by JBmurc View Post
yes correct -http://chalmersproperties.co.nz/portfolio/dunedin/

something wrong with them ?? looks like they own the vast bulk of the commercial land close to CBD/PORT
of course they will continue to lift lease of the land reviewed every 7 yrs
They will and have been quite harsh at times. However I genuinely wish you luck. Be aware that value will rise and fall largely related to proximity of next rent review. Tenants will pay rental based on same per square metre rate as freehold, meaning that when ground rent rises they may be paying too much and therefore your next rental review might be disappointing. It depends a bit when review dates fall. The other downside is if you want to sell you will find a smaller pool of buyers. Some investors simply will not consider leasehold purchases and lenders used to limit mortgages, although that may have changed a bit. . I have owned a couple of these back in Port Otago days, and have been involved in leasing and managing others as well as DCC and Otago Foundation trust leasehold. These days I would not touch leasehold at all unless it was a 21 year term with no reviews and in the first year or so of the new term, and even then - probably not. There aren't many of these left, most having taken up the bait when 7 year ground review were offered at lower initial rents; a few years ago most were 21 year reviews. That's just me though, and others will have different ideas.
Yes, they do own the bulk of land east of CBD. Remember most of that land was reclaimed from original harbour. There is a plaque outside the John Wickliffe house in the exchange marking where the first settlors' ships landed.
It has often been cited as a reason for Dunedin's slow progress in industrial development as little freehold land with industrial zoning was available, although I have my doubts that that is the sole reason; even though I have met many industrialists, developers, and tenants who are not interested in leasehold. However it doesn't seem to have been as much of a problem in Wellington which has a lot of leased land.
Best of British.