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News Release

Auckland, New Zealand

Investment sales coming back to Newmarket


 

 

Grey Lynn office unit decked out for summer/new-zealand/en-gb/news/864/grey-lynn-office-unit-decked-out-for-summerAucklandGrey Lynn office unit decked out for summer
East Tamaki gem with new five-year lease/new-zealand/en-gb/news/863/east-tamaki-gem-with-new-five-year-leaseAucklandEast Tamaki gem with new five-year lease

​​Newmarket has been the victim of considerable market uncertainty since the GFC with the ex-Lion Breweries site at one end and the Westfield 277 development at the other. Both of these precinct defining developments have the potential to change the dynamics of Newmarket but have both suffered their fair share of setbacks.

After several years of minimal activity however the in Newmarket precinct, the market is now moving forward. Retail confidence is building with several retail transactions through 2013 demonstrating that retailers were prepared to think long term about the precinct. 2014 is now seeing a pickup in the market for investment properties in Newmarket reflecting a return to liquidity for larger assets.

Nick Hargreaves, Managing Director at JLL, who recently sold a redevelopment opportunity at 79 Carlton Gore Road in Newmarket alongside John Binning says, “The impetus provided by the University’s redevelopment on Khyber Pass has re-rated the surrounding properties and refocused the investment drivers in the area. The same will happen at the other end of Newmarket when the 277 redevelopment goes ahead.” 

Two more properties in the area have come to market to transact underlining investor confidence in the precinct; 5-7 Kingdon Street and the ASB Bank building on 334 Broadway. John Binning, Director of Capital Markets at JLL who is marketing both the properties says, “Recent activity and levels of enquiry in the area indicate that Newmarket’s uncertainty is lifting and the developments happening both within Newmarket is acting as a significant catalyst to the area.”

Built for their anchor premises in Newmarket, the ASB Bank commercial office building is situated on the corner of Broadway and Balm Street directly opposite 277 which is rapidly becoming the premium retail precinct of Broadway, Newmarket. The property comprises a recently completed 2 level (plus basement) retail premises built for ASB Bank as their anchor premises for Newmarket. To show its commitment to this position ASB Bank Limited has taken a 14 year lease that commenced on the 20th December 2006 and expires on the 19th December 2020.

John Binning who is selling ASB Bank via an expression of interest campaign closing on the 30th May says, “ASB bank is a superb property that represents an unrivalled opportunity in the market place to purchase a truly top shelf investment on Broadway, Newmarket, encompassing quality building, quality location and a quality tenant.”

Also selling in this major growth location is the seven level commercial office building at 5-7 Kingdon Street via an expressional of interest campaign closing 4th June. Binning says, “As well as being situated within the vicinity of a number of corporate headquarters, the property is located firmly within the sphere of influence of the University of Auckland’s Newmarket campus. Several high calibre tenants occupy this building including; Bupa Care Services, Knowles Consulting Limited and KGA Limited.”

In the last quarter of 2013, Newmarket also saw one of the largest single asset transactions in the post GFC era take place with the sale of Watercare House, 73 Remuera Road. This was sold to a private investor for NZD 100 million. This is the first transaction of this size to ever be recorded in the Newmarket area.

Pent up demand for quality office space in Newmarket can clearly be seen with the dramatic increase between upper and lower rents which have almost doubled over the last five years. The latest numbers indicate that Newmarket rents range between NZD 300psm and NZD 155psm to average NZD 233spm. This has spurred on landlords to upgrade and remediate older buildings to standard, especially around Carlton Gore Road and Broadway Avenue.