flyin_higher
June 20th, 2008, 12:39 PM
The facts as they happen...
(from the National Business Review)
Garden City scores new $25m office tower
by Chris Hutching
Friday June 13 2008
http://www.nbr.co.nz/files/article-images/Visual_of_Armagh_Street_430.jpg
Christchurch developers Ecca Tanfana and Stuart Leck are planning a new $25 million office tower for central Christchurch.
In spite of much negative news about the state of the property market, Messrs Leck and Tanfana are confident they will obtain sufficient leasing commitment to begin construction by October.
They have some advantages. They have already obtained resource consents and built the three-level car park building and ground floor retail that forms the base of the building that will have nine more levels added.
They have owned the property for several years.
They acquired the land and an adjacent site with the aim of developing two luxury apartment towers, completing Victoria Apartments in 2006 and selling the last apartment in December 2007.
The prices averaged around $2.2 million and were bought by some of the city's leading businessmen such as John Butterfield.
But during 2005 the development duo abandoned marketing plans for the second apartment tower while they completed the selldown of Victoria Towers and the base of the second building.
Now, with resource consent in place, they have decided the prospects for the office market are looking strong and have embarked on a marketing programme after sounding out initial inquiry levels.
The office market in Christchurch is relatively small compared to Wellington and Auckland but the three A-grade buildings - the fully or near fully leased PricewaterhouseCoopers Centre, Forsyth Barr House and Clarendon Towers - are all 20 years old.
One other low-level office building has been recently completed by Simon Henry in a more fringe CBD location on Cashel St, leased to IRD at $337 a square metre.
Another more centrally located tower is under construction on the site of the Canterbury Club in western Worcester St near the Avon River next to the new civic office refurbishment project in the former postal centre.
The marketing programme by Colliers for Messrs Tanfana and Leck's new building is likely to compete with Club Tower but they say their rentals will be around $350 a square metre compared with the $400 a square metre being sought by the Club Tower developer Ken Wimsett of Latitude Group.
Hamish Doig, managing director of Colliers in Christchurch, said there was a mood among professional service and high calibre firms to move into more substantial space, and there was very little available at the top end of the market.
Messrs Tanfana and Leck said that while some developers were under stress they had a good relationship with their funder, albeit the usual prerequisite of around 60 per cent leasing commitments would be required.
They also said:
Floor plates will range in size from 496-644sq m.
Rentals are $350 a square metre on a net basis.
Naming rights are available, with a price tag of $20,000-25,000.
Initial leasing terms will be 10-12 years.
(from the National Business Review)
Garden City scores new $25m office tower
by Chris Hutching
Friday June 13 2008
http://www.nbr.co.nz/files/article-images/Visual_of_Armagh_Street_430.jpg
Christchurch developers Ecca Tanfana and Stuart Leck are planning a new $25 million office tower for central Christchurch.
In spite of much negative news about the state of the property market, Messrs Leck and Tanfana are confident they will obtain sufficient leasing commitment to begin construction by October.
They have some advantages. They have already obtained resource consents and built the three-level car park building and ground floor retail that forms the base of the building that will have nine more levels added.
They have owned the property for several years.
They acquired the land and an adjacent site with the aim of developing two luxury apartment towers, completing Victoria Apartments in 2006 and selling the last apartment in December 2007.
The prices averaged around $2.2 million and were bought by some of the city's leading businessmen such as John Butterfield.
But during 2005 the development duo abandoned marketing plans for the second apartment tower while they completed the selldown of Victoria Towers and the base of the second building.
Now, with resource consent in place, they have decided the prospects for the office market are looking strong and have embarked on a marketing programme after sounding out initial inquiry levels.
The office market in Christchurch is relatively small compared to Wellington and Auckland but the three A-grade buildings - the fully or near fully leased PricewaterhouseCoopers Centre, Forsyth Barr House and Clarendon Towers - are all 20 years old.
One other low-level office building has been recently completed by Simon Henry in a more fringe CBD location on Cashel St, leased to IRD at $337 a square metre.
Another more centrally located tower is under construction on the site of the Canterbury Club in western Worcester St near the Avon River next to the new civic office refurbishment project in the former postal centre.
The marketing programme by Colliers for Messrs Tanfana and Leck's new building is likely to compete with Club Tower but they say their rentals will be around $350 a square metre compared with the $400 a square metre being sought by the Club Tower developer Ken Wimsett of Latitude Group.
Hamish Doig, managing director of Colliers in Christchurch, said there was a mood among professional service and high calibre firms to move into more substantial space, and there was very little available at the top end of the market.
Messrs Tanfana and Leck said that while some developers were under stress they had a good relationship with their funder, albeit the usual prerequisite of around 60 per cent leasing commitments would be required.
They also said:
Floor plates will range in size from 496-644sq m.
Rentals are $350 a square metre on a net basis.
Naming rights are available, with a price tag of $20,000-25,000.
Initial leasing terms will be 10-12 years.