Monthly Archives: April 2018

MHP/MM Newsletter – Autumn 2018 – April 2018

April 22, 2018

Autumn 2018  2018 NEWSLETTER
Welcome to MHP and Mitchell Mackersy Lawyers’ inaugural joint quarterly newsletter.  In this and forthcoming editions we will be including news and updates from both MHP and Mitchell Mackersy which we hope our investors, tenants, contacts and friends will find interesting and relevant, given the many synergies between our businesses.  As you may be aware, Ron Mackersy is due to retire from the partnership of Mitchell Mackersy  Lawyers in the coming months, nearly four decades after founding the firm in 1982.  He is leaving the business        in sound shape and in good hands, led by longstanding partner Tess Wethey along with younger partners Adam Copland and Hamish Wilton.  After taking a well-earned holiday, Ron will remain with the firm in a consultancy    role.  This will see him continuing to be closely involved with the property syndication business, including   evaluating new investment opportunities, negotiating acquisition deals and mentoring team members.  He will   also continue to contribute to this newsletter.  A profile piece on Ron is included in this issue.
Happy reading,
The MHP and MML teams

Comments from Ron Mackersy
The year is already well underway, with several ongoing trends in the commercial property market reflecting the continued high demand for quality assets among investors.  Longer term interest rates have firmed marginally, however as predicted, banks are lending again which has caused margins to soften. Commercial property yields   on prime assets have dipped under 5% in Auckland and Queenstown has now followed suit.  At the same time,  land and building costs are still climbing, so we are seeing geared investment returns in prime locations barely reach 6%. This is below most investors’ appetites, especially our traditional investor base. However, we are   working hard to secure prime assets off-market in key locations which we are confident will be solid performers over the long term.
Social media seems to be dominating the headlines globally, along with cold wars and trade wars between the     big powers. The New Zealand economy remains healthy but poor results from large companies (for example Fletchers and Fonterra) are more worrying. I’ll be watching with interest as the next six months unfold.

News from Dale Robertson’s desk
2017 was a year of further growth for the MHP business.  Over the course of the year, we added nine new properties to the portfolio, representing a total value of $78m.  We also welcomed 26 new tenants into the  portfolio. Our team also grew in 2017, with the appointment of five new people based in our Christchurch and Queenstown offices.  It is with particular pleasure that I announce the appointment of Gwynn Gilmour as         Senior Facilities Manager at MHP. Gwynn is a building and quantity surveyor who has worked with Mitchell Mackersy Lawyers and MHP for over three years as a contractor.  Facilities management is a broadening of           the property management discipline to include occupier-related services such as maintenance of the working environment within a building.  As our portfolio matures and becomes more sophisticated, we have identified          a need to strengthen our focus on facilities management, including detailed condition reports and long-term maintenance plans.  This will help ensure our assets are operating as efficiently as possible.  We are delighted          to welcome Gwynn to the team.

Our focus for 2018 is on improving our systems and processes in a number of key areas including financial reporting, health & safety and communications.  We are now in the process of meeting directors and updating     them on our proposals for change.
Information and updates for investors
Important information for investors in Mitchell Mackersy syndicates who intend to file their own personal tax returns for the financial year ending March 31 2018:

• To enable us to provide you with the required information in time to meet the deadline for filing returns            with the IRD by July 7 2018, please contact Kate Mackersy by the end of April, confirming that you intend to file   your own personal return this year. Email: or phone: 03 450 9540.

• Investors who have an accountant/tax agent filing their returns on their behalf do not need to contact us.
Investors will also have received an update on the July 2017 investor survey results and suggested changes        from Omea Willows.

Mitchell Mackersy and MHP are working together to ensure investors’ expectations are met. We also take           pride in maintaining the reputation Ron has developed over the past decades.  We love hearing from our    investors, so please contact either Omea Willows ( or Kate Mackersy with         any feedback or comments.

Overseas Investment Act Amendment Bill
Labour is striving to keep its election promise of restricting foreign ownership of residential property.  An amendment to the Overseas Investment Act 2005 has been tabled.  The amendment, if enacted, will ensure         that non-residents will generally not be able to buy existing houses, residential or lifestyle land. The intention           is to make homes more affordable for New Zealanders while also helping redirect capital to productive uses.        The amendment provides that overseas persons will only be able to buy residential land if they:
• develop that land to add to New Zealand’s housing supply; or
• convert the land to another use and can demonstrate this would have wider benefits to the country; or
• hold an appropriate visa and can show they have committed to residing in New Zealand.
If a foreigner purchases residential land to build houses on it, they will be required to sell the land when the   houses are built.
The Bill does not make changes to rules relating to commercial property purchases.  Under the current Act,               if a piece of land zoned for commercial property is greater than a certain size and adjacent to sensitive land        (e.g. foreshore or conservation land), or the value is greater than $100m, consent for purchase is required if         the purchaser is an overseas person, or 25% or more foreign owned.
For more information, please contact Gemma Zust, Associate at Mitchell Mackersy Lawyers: email

Health & safety update: Does your property comply with earthquake standards?
Employers and owners of buildings are required under the Health and Safety at Work Act 2015 to identify             and manage hazards in the workplace – this includes building-related hazards.  Owners and employers must continually analyse any risks in respect of each building they own or occupy, to determine what practicable       steps can be taken to manage hazards.  Two key areas of focus are:
• Building components: items attached to the building which may or may not be part of the structural integrity       of the building. These are things such as ceilings, balconies or glass which could cause harm to occupants in           an earthquake.
• Chattels and equipment: items such as fridges, cabinets, shelves or machines which could injure a building’s occupants during an earthquake must also be secured.
Read more on the WorkSafe NZ website here.

For more information on MHP’s health and safety programme, please contact Anita Brosnan, MHP Project               & Compliance Manager: email
Profile: Ron Mackersy
Ron founded Mitchell Mackersy’s commercial property syndication business in the mid 1990s.  This followed decades spent in the legal and business world focusing, at various times, on imports and exports, lending and mortgage broking, among other special interest areas.  He balanced this with a busy family life with his loyal         and supportive wife Anne and their three children, as well as his many personal interests which include motor racing, mountain biking and Rotary.

Over the course of his long career Ron has seen the law change from profession to business enterprise.     However, he says there’s still no substitute for hard work and playing a ‘long game’ based on a win/win       approach to all dealings.

As well as being highly regarded as an astute legal and business professional and an expert commercial    negotiator, Ron is also known as a quiet philanthropist.  He is extremely generous with his time and actively supports many community organisations and charities.  He is also known for spending time one-on-one with     many of his employees and business contacts, providing advice and guidance.  He takes a genuine personal    interest in the career development of his team members, which is reflected in the strong, longstanding and        loyal team he has helped build in the Mitchell Mackersy practice.

Never one to shy away from a challenge, Ron is always willing to roll up his sleeves and face problems head-on,      in situations where others may find themselves outside their comfort zone.  He also has an innate ability to       quickly pinpoint solutions to problems before others even reach the first step.  This quality is closely related to      his ability to identify the best people for the job and connect them with others, facilitating working relationships that result in long term mutual benefit.

Ron cites the success of the property syndication and management businesses as a great source of pride,          given that their success was achieved with the support of his family, friends, local business partners and a    dynamic team of staff. Being featured on the cover of the NZ Law Society’s magazine LawTalk in 2014 was       another career highlight.

Asked what the ‘glue’ is, Ron says it’s family, staff, clients and collegial support.  This philosophy is reflected in    Ron’s strong and longstanding associations with many clients who he has known since the early days.  He              has also become a trusted advisor to his loyal client base, as well as to a great number of his staff and          personal contacts – a position he will continue to hold over the next five years as a consultant to Mitchell    Mackersy.


MHP is a leading New Zealand manager of syndicated and individually-owned commercial properties.  We           work to ensure the prime, high-performing assets we manage generate superior returns over time.  Our        dynamic team has extensive experience in commercial property and we pride ourselves on our bespoke,         expert service.

Ground floor, Building 1, 1 Show Place, Addington | PO Box 9159, Tower Junction, Christchurch 8149
T: 03 351 6971 | E:

Unit 10, Five Mile, 34 Grant Road, Frankton | PO Box 2833, Wakatipu, Queenstown 9349
T: 03 441 0679 | E:

4/248 Cumberland Street, Dunedin Central | PO Box 12001, Maori Hill, Dunedin 9043
T: 03 972 7996 | E:


Mitchell Mackersy has successfully syndicated over 100 commercial buildings throughout New Zealand                over the past 30 years, with a total value of over NZ$1 billion. With strong industry relationships, a highly          skilled team and a loyal private investor database, we offer commercial property investments using a tried           and tested model.

Unit 10, Five Mile, 34 Grant Road, Frankton | PO Box 2657, Wakatipu, Queenstown 9349
T: (03) 450 9540 | F: (03) 441 4090


Copyright © 2018 Maori Hill Property, All rights reserved


September 2017 Newsletter – Welcome 

Welcome to MHP’s Q3 newsletter. We’re sure all our readers will be happy to see the arrival of spring, which has been a long time coming. The big issue of course is the election and as we prepare this newsletter the outcome of last weekend’s vote is still unknown. We are watching developments with interest as the major parties get down to business with Winston. Whatever the outcome, let’s hope the new government is formed swiftly.

We hope you enjoy this newsletter – please contact us if you have any comments. We also invite you to follow us on LinkedIn for all our latest news and updates.

Happy reading,

the MHP team.

Comments from Ron Mackersy

As we head in to the fourth quarter of 2017, uncertainty still characterises the markets. The election is over, but the outcome is still to be determined. Globally, the effect of Trump is still a hot topic and hurricanes, weather bombs and earthquakes have caused major damage worldwide.

Where does the New Zealand property market sit? Sales numbers are down but we are yet to see sustained price falls or the loosening of commercial yields. Hot spot Queenstown still bucks the overall trends. The airport numbers defy belief (over 1.8 million passengers in the year ended June 2017), infrastructure is struggling and land prices and development costs are at all time highs. 

The banks now seem to have more available funds in the commercial area. Competition between banks should hold or soften margins. We have also seen an increase in overseas interest in buying commercial property as overseas yields are still very low and New Zealand is seen as a stable alternative. Let’s hope our political situation gets resolved quickly as this could provide a review of how the world sees us. New Zealand was going so well – how things change!

News from Dale Robertson’s desk

Since our last update in June, we have continued to grow the MHP team to meet the demands of business growth. In Christchurch we have recruited Gabrielle Wethey to look after human resources and we are in the process of bringing a new property manager on board in Queenstown.

As is usual for this time of year we are planning for 2018 and beyond. This includes business growth forecasting and making sure that our people, systems and processes are robust enough to cope with ongoing growth. We are also working with Mitchell Mackersy Lawyers on a communications plan intended to keep directors, shareholders and tenants better informed. 

Along with Mitchell Mackersy we are also analysing the results of our recent shareholder survey and looking at how we can improve our systems and processes to address the issues raised. Thank you to all shareholders who filled out the survey – your feedback was very insightful.

New joiners to management portfolio

This quarter we are pleased to have added two significant new properties to our management portfolio, detailed below. Both are owned by groups of investors represented by Mitchell Mackersy Lawyers. We have also seen growth in our private management portfolio, with the addition of an office building in Middleton, Christchurch and a retail and office complex in Dunedin.

Countdown, 24 Medway St, Gore

Leased to Countdown, this 2260m2 building was originally constructed in 1983, extended in 1994 and modernised in 2009. Its seismic strength is significantly in excess of minimum standards at 129% of NBS. The supermarket occupies a prime 5800m2 site with excellent access and parking. 

31 Deveron St and 101 Don St, Invercargill

Business advisors and chartered accountants Malloch McClean occupy this modern, purpose built two-level office building in the Invercargill CBD. Calder Stewart constructed the 1408m2 building in 2012 for the tenant, who requested a high quality build and fit out. The property includes 24 car parks.

Health and safety update

The regulations around working with asbestos changed on April 4 2016.

The Health and Safety at Work (Asbestos) Regulations 2016 state that every building built prior to 2000 must be assumed to contain asbestos, and that no-one can go near it unless they comply with the regulations. PCBUs (people conducting a business or undertaking) with control or influence over a workplace have until April 2018 to develop a plan to manage the risk of exposure. The regulations are consistent with the Act’s intention that there is a collective responsibility to manage risks to health and safety. 

As the duty to indicate the location and presence of asbestos applies to a wide range of PCBUs and activities, we will be reviewing our management portfolio to identify those buildings built prior to 2000 to ensure compliance. For more information, please contact Anita Brosnan, Project & Compliance Manager, email

Guest column from Crombie Lockwood

We are delighted to have been appointed to provide insurance broking and advisory services to MHP across its entire property management portfolio. For those readers who don’t know us, Crombie Lockwood is the largest insurance broker in New Zealand, with around 750 professionals across 26 offices. Our Christchurch office, which is overseeing our work for MHP, has around 100 staff including a dedicated claims team. Internationally we have global reach through our parent company, NYSE-listed Gallagher.

The current property insurance market in New Zealand is best described as “destabilised and uncertain” with premium and deductible increases being imposed. Unsurprisingly this is principally due to last year’s Kaikoura and Wellington earthquake along with a losing hand of floods, fire (Port Hills) and tropical tempests.  New Zealand insurers are particularly impacted as they don’t have the geographic spread of risk or premium volume to offset the claims. In short, the industry’s entire premium income is many times less than the cost of claims. This is creating an unsettled market.

In this environment, our role as MHP’s insurance broking and risk advisor is to insulate the property portfolio from these influences. We will be providing further market updates in future issues of this newsletter, so watch this space.

Guest column from ANZ

While the impacts on the economy of the election are still unknown, we did note some interesting currency movements in the lead-up to the election. 

The graph below shows the currency drop sharply (first yellow line) following the first poll with Labour’s new leadership and growing popularity. The second yellow line shows the sharp rise (almost 1 cent across the board) after a later poll showing an increase in National’s popularity. We all know the polls are what they are, but the impacts on the NZ dollar are very interesting.

On the interest rate front, bank funding pressures have eased somewhat but not disappeared. The gap between household lending and deposit growth has narrowed, which would suggest less competition for attracting domestic deposits. However, with the external borrowing constraints persisting (more scrutiny from regulators and credit rating agencies), lending growth is unlikely to increase unless deposit growth keeps pace. With the latter being somewhat of a restraint, tighter lending conditions are likely to remain for some time. This is likely to provide some stability around interest rates and credit margins at current levels, however the lag effect means a number of borrowers may face margin increases as facilities renew or extend to get to current levels.

Team member profile

Sonia Adams-Richardson

Sonia joined MHP’s Christchurch office in March 2017 as Property and Facilities Manager, looking after MHP’s management portfolio in Show Place Business Park, Addington, Christchurch. She is also Property Manager for Cardinal Logistics’ new facility at Waterloo Business Park, Christchurch; and the Countdown supermarket in Gore. 

Sonia is of Brazilian-German descent and has lived in Christchurch since late 1990s, apart from a recent five-year stint in Auckland. Her recent roles include working as a body corporate manager and commercial and industrial property manager in Auckland. Sonia holds a Bachelor of Property degree from Auckland University.