Tuesday, 24 May 2011

The terms for acquiring NZ commercial property have never been more favourable.

The terms for acquiring NZ commercial property have never been more favourable.
Contact: Bruce Whillans M +64 (21) 985 619 / DDI +64 (9) 304 1453 / bruce.whillans@raywhite.com / www.rwcauckland.com

The terms for acquiring NZ commercial property have never been more favourable.
The timing to invest in New Zealand commercial property has never been better. All three sectors, office, retail and industrial moved back into positive growth following a 3 year downturn.
This coupled with the Australian dollar sitting at a 10 year high to New Zealand puts Australian investors in a strong position to take advantage of firming yields and a potential exchange rate play.

Underpinned by strong population growth, an improving economy and commodity prices at an all time high the outlook for investment in New Zealand is excellent.

New Zealand government policy further encourages overseas investors with a high OIA investment threshold, no stamp duty, land or capital gains tax .

Below is an indicative selection of investment properties that we currently have on our books along with the profiles on one of New Zealand's leading investment bankers Reesby & Co and property lawyers Glaister Ennor who would be pleased to address any questions on funding or legal issues you may have. With 35% stronger purchasing power please dont hesitate to call me to see how we can make your dollar go further.

Yours Sincerely

Bruce Whillans 
Managing Director
M: +64 (21) 985 619
D: +64 (9) 304 1453

4 key reasons why Auckland represents better value for money...

New Zealand has entered a unique phase in its commercial property cycle with all signals suggesting we have hit the bottom of a three year easing period.

For the past 12 months the Auckland industrial, office, and retail markets have shown little movement in yields, vacancies or rental levels, with underlying economic trends pointing to a return to growth.

While the Australian Dollar remains at decade highs, currently 35 cents stronger than the Kiwi and the spread between 90 day bank bill rates in both countries widens to 220 basis points, the cost of acquiring commercial property in New Zealand has never been more favourable.

Auckland is a standout performer against the wider NZ market, with population growth rates on par with Australia's capital cities, a key driver to growth in any property market.

In addition to having a weaker currency and lower interest rates, our property cycle remains 9-12 months behind that of Australia allowing buyers to enter the market while prices remain at their lowest.

Prime funding available from Reesby & Company

Reesby & Company are the largest commercial property finance brokers in New Zealand.

The majority of their transactions are in the $5 million to $25 million range, however the company has also financed a number of New Zealand's largest property projects.

Reesby & Company has unique banking and finance contacts both in New Zealand and overseas.

They also have their own private lending vehicle for first and second mortgages.

The lending market changes on a monthly basis. Reesby & Company has an intimate understanding of the market place as they are negotiating with the major New Zealand lenders on a daily basis.

They therefore understand which lender provides the most competitive terms and conditions at any time and exactly how far they can push each lender.

For commercial property investment finance they are usually able to achieve 60 - 65% geared interest only facilities and up to 75% based on principal repayments being made.

Martyn Reesby - Principal
DDI: +64 (9) 302 7400 
James Kellow - Lending
DDI: +64 (9) 921 4416
Indicative Fixed Rates:

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