Savvy developers still buying up large

While the sale of land and redevelopment sites has been significantly affected by a tighter funding market, there are still good land sales being made says Chris Bayley, Bayleys Real Estate's commercial and industrial general manager.

Bayley says while most investors are predominantly focused on cash flow and "land banking" activity has declined, it is still encouraging to see some development companies and businesses positioning themselves for the long term.

John Halstead of Bayleys Auckland and Marty Roestenburg of Bayleys Manukau have recently been involved in the sale of two development sites in Great South Rd, Takanini, to the same purchaser for close to $10 million.

One Takanini property containing 1.1296ha of land in six titles sold for $5.3 million. Comprising five separate buildings totalling 1831sq m with a large amount of yard space, it has holding income of close to $280,000 per annum through to December 2009.

Halstead then negotiated with the owners of an adjoining property on behalf of the purchaser. This property, comprising 8744sq m of land with around 3870sq m of buildings and a peppercorn rental, sold for $4.69 million.

To read the full NZ Herald article click here

Posted: 24 Nov 2008

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