It’s hard to believe we are already half way through 2017. So far this year is as busy as ever for MHP as we continue to recruit new team members, move to bigger offices and bed down new properties into our management portfolio.
In our last newsletter we outlined our increased focus on health and safety across our management portfolio. As part of this focus we are pleased to have gained Site Safe New Zealand membership, demonstrating our commitment to improving and promoting a culture of health and safety in the New Zealand construction industry.
We hope you enjoy this newsletter, please get in touch if you have any feedback.
the MHP team
Comments from Ron Mackersy
As I mentioned in MHP’s March newsletter, the availability of bank funding has tightened over the course of this year, particularly for property developers. Banks have experienced such high demand over the past few years that they have reached (or nearly reached) their lending limits determined by the Reserve Bank. This is affecting developers, many of whom are now struggling to get the finance required to get new projects off the ground.
With most of our product coming from developers, this will have an impact on the availability of new stock. If developers are having difficulty securing funding, they will defer the commencement of projects and we will have fewer assets to buy.
In this environment, we are still aiming to provide investors with a reasonable number of opportunities over the coming months. We are being offered more purchasing opportunities off-market, which will change pricing dynamics in some cases.
The other major factors affecting the market over the second half of this year – in particular interest rates, President Trump and the NZ general election – are all resulting in a heightened mood of uncertainty. We will be watching with interest as it all unfolds.
News from Dale Robertson’s desk
We have welcomed several new tenants into our management portfolio around the country so far this year. One of the latest additions is NZ Sotheby’s International Realty, which has signed up to take a retail unit in the ground floor of the TradeMe building at One Market Lane, Wellington. Fit out works are currently underway and we look forward to welcoming Sotheby’s into the building next month.
Minor earthquake damage to the building is in the process of being repaired and this is expected to be completed without any interruption to the tenants’ businesses. The building is an excellent asset with a good mix of tenants which also includes TradeMe’s national headquarters and Mojo Coffee Cartel, which operates one of its flagship cafes in the building.
With health and safety an ongoing area of focus, our Project and Compliance Manager, Anita Brosnan, is now finalising a list of preferred contractors covering our entire management portfolio. This in-depth process has involved thorough scrutiny of each contractor’s health and safety processes. As a result, two companies are no longer being engaged to provide services due to an insufficient level of compliance.
We are also working with a small number of contractors which are in the process of updating their health and safety protocols to ensure compliance. These contractors have expertise that is valuable to us in certain locations, so we are aiming to work with them to bring their processes up to our stringent standards.
We are also pleased to welcome Vicky Barke who has joined our Queenstown team as Assistant Property Manager. Vicky joins us following eight years in the tourism industry, where she worked in various accounts and administration roles.
Cardinal Freight facility joins management portfolio
We are pleased to welcome Cardinal Freight’s impressive new building at Waterloo Business Park, Islington, Christchurch, to our management portfolio. This is a large-scale, modern warehouse facility with floor area of nearly 14,000m2. The building was completed in November 2016 and includes a 14m high stud warehouse, expansive canopy area, 48 car parks, yard space and offices.
Cardinal is one of NZ’s leading logistics companies, specialising in distribution and storage solutions with a strong focus on grocery products. Its site at Waterloo also includes additional land to accommodate possible future expansion of the business.
Queenstown market at cyclical peak: Colliers
Colliers has released its annual Property Market Review and Outlook Report for 2017. The report details Colliers’ key predictions on various sectors of the Queenstown property market, along with sections on the Wanaka and Dunedin markets.
MHP and MML move to new office in Queenstown
MHP has moved (along with Mitchell Mackersy Lawyers) to new premises at Five Mile, Frankton, Queenstown. MHP and MML can now be found in their new office space above ANZ in the new retail centre.
British & Irish Lions Live Site, Christchurch
Throughout June and July, a Live Site is operating in the new public space outside the Vodafone building in Christchurch (managed by MHP).
Fronting Poplar Lane, the Live Site features a big screen for watching the Lions take on the All Blacks and Crusaders, along with entertainment and food vendors. Just across the road is the newly-opened Little High Eatery, an international-standard food emporium featuring eight licensed food outlets which are already well-known around Christchurch, from their presence at farmers markets and the Re:Start container mall.
If you’re in Christchurch, it’s a great chance to head down and check out this newly-rebuilt corner of the CBD.
Team member profile
Anita joined our Christchurch-based accounts team in early 2017. She has significant experience in the accounting field, having worked in accounts roles for several organisations and corporates since the early 1990s. Her most recent role was with body corporate and commercial property managers Thompson Wentworth Ltd, where she gained significant experience managing extensive day to day accounts, EQC repair cashflows, general insurance claims and liaising with committees and owners.
Anita brings this strong experience in body corporate accounting to MHP, where she assists Financial Controller Julie Elliott with accounting and financial management across our portfolio.
The Queenstown property market is at a cyclical peak. However, the medium term outlook remains very positive, with some very strong trends continuing to drive the market.
That is the key finding of Colliers International’s 2017 Queenstown property market review and outlook report, released this month.
Download the report at the link below: