Soaring dollar does little to clip buyers' wings

It's not often a real estate agent sells the building his company's head office is in, but in David Bayley's case it has resulted in this year's largest commercial property sale to an offshore investor despite problems caused by the rapid rise of the kiwi dollar.

Bayley, the executive director of Bayleys Real Estate, has sold the Pernod Ricard building at 4 Viaduct Harbour Ave in Auckland's CBD on behalf of NZX listed Goodman Property Trust for $26.6 million. The buyer is a syndicate of European investors making their first investment in New Zealand. Bayleys Property Services will manage the building.

Bayleys and Pernod Ricard (NZ) are anchor tenants in the 6900sq m, 6-level office building. It is located on a 2500sq m perpetually renewable leasehold site with the next five-yearly ground rent review in July 2010.

Bayley says the transaction was one of the most challenging he has had to negotiate, with the recent significant upward movement in the exchange rate being one of the reasons.

"The volatility of the exchange rate is not just an issue for exporters, it also has substantial impact on offshore parties that are looking to invest money in New Zealand.

To read the full NZ Herald article click here

Posted: 29 Aug 2009

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