Northland Property Investors' Association
The biggest single receivership sale of residential investment property ever seen in New Zealand is placing seven large-scale multi-tenanted units on the market for sale – encompassing some 153 rental units.
There are seven properties in Hamilton, New Plymouth and Palmerston North. They are being sold by Bayleys through a tender process.
The properties have a combined valuation of $15.6 million and were owned by Jenepher and Kenyon Clarke. They were behind the Sarvee group of companies. Twelve of these companies were put into receivership in 2008 by Bank of Scotland.
Bayleys sales consultant Cameron Melhuish says the properties being put up to tender represent a significant chunk of private accommodation in those respective markets.
The seven properties include:
Melhuish said all of the accommodation units have been trading well since being placed in receivership at the end of 2008.
The units were rented by a wide variety of occupants - including university students and other tertiary education users, people on short-term employment contracts, young business professionals, and those new to Hamilton, New Plymouth or Palmerston North seeking short term rental units before buying their own property.
Melhuish said he has already been talking to several large corporate investors about the portfolio, and had received considerable interest from commercial or industrial property investors looking to diversify their holdings to include a greater proportion of residential titles.
"While the size of these properties may be beyond the realm of someone wanting to invest in a three bedroom house or block of two bedroom flats, they do fall well within the budgets of family trusts or small to medium-sized investment portfolios"
"With student places at Waikato and Massey universities now at a premium, this has generated a flow-on effect for the accommodation sectors in Hamilton and Palmerston North - hence the high occupancy levels of these residences. This certainly underpins their attraction from a cash-flow perspective.
"Meanwhile in New Plymouth, the size of the dwellings on offer - being three bedroom units on low to no-maintenance sections - has ensured strong demand from executives and professionals".