Prime Pacific properties for sale

Pacific Portfolio, a glossy high-quality magazine which features more than $500 million of properties for sale in New Zealand, Australia and Fiji, has been launched by Colliers International.

The 46 office, industrial, retail, lifestyle and island properties comprise 30 New Zealand, 14 Australian and two Fijian properties, and will appeal to investors across the board, says Peter Herdson, Colliers International sales director.

The Pacific Portfolio has properties for sale in Sydney, Melbourne, Brisbane, Adelaide, Canberra, Perth, Auckland, Wellington, Te Awamutu, Tauranga, Hawkes Bay, Palmerston North and Christchurch.

For investors with a hankering to own an island, the 24ha, picturesque Pakatoa Island in the Hauraki Gulf is for sale. Pakatoa is one of the few privately owned islands in the gulf. Most are held by the Crown as reserve and park land.

The island was developed as a resort destination about 40 years ago and now offers any potential buyer the opportunity to redevelop its tourism potential or provide exclusive residential retreats.

And for investors wanting to look further afield, Fiji has Wayasewa Island, the first island in the Yasawas for sale.

About 6ha with a renewable 99-year native lease is being offered for development. Under two hours from the mainland by catamaran, the land borders two golden sand beaches with a natural reef and is adjacent to renowned diving spots. The land has consent to build 100 bures plus hotel facilities.

Another feature in the portfolio is Windsor Court, one of the biggest freehold, standalone Parnell properties for sale in years. Parnell tends to have parochial ownership and properties don't change hands often, says broker James Thorburn.

Windsor Court, owned by the Macquarie Goodman Property Trust, is a fully leased, four-level, retail and office building on the corner of Parnell Road and Windsor Street returning net rent of $675,000 a year.

Windsor Court is regarded as an orphan in the $536 million Macquarie Goodman Property Trust portfolio. CEO John Dakin says the property is being sold to "re-weight" the property trusts portfolio. While it is a good property, it doesn't suit the trust's model of business.

Sales brokers Thorburn and John Davies say the property has development potential. It houses six office tenants in 1875sq m over two floors, and the BNZ and Star Mart occupy 434sq m at street level.

Herdson says the property market is short on investment properties and saturated with potential buyers.

Quite simply, there's a shortage of property to invest in. Properties aren't being developed fast enough to satisfy local investors and the many fund managers now searching the globe seeking to place their cash.

Combined with the Portfolio 2005 released in April, Colliers will have marketed more than 100 properties across the two publications and should have sold $1 billion of property from both portfolios by the end of the year.

Herdson says the competition for investment properties is pushing up prices and nowhere is this phenomenon more apparent than in the South Pacific.

Colliers International offices across the Pacific have contributed to the Pacific Portfolio and Herdson says the company's high standing in Australasia has helped secure properties. We're the only company that has been able to pull together an international portfolio using our own network of offices," he claims.

Another property likely to be highly sought after is an Onehunga building tenanted by Westpac's card processing centre.

Situated on the corner of Gloucester Park Ave and Neilson St, it is being sold by St Laurence Group. It was one of the first properties syndicated by St Laurence and returns a yearly rent of $688,850.

The building has 4669sq m net lettable space over three large office floors that include large decks and 130 covered carparks, making it ideal for a future call centre, says sales broker Tony Allsop.

Westpac has just exercised its right of renewal under the lease and will be in the secure IT-geared building that sits on 3900sq m and has a Manukau District Council Business 4 zoning for several years.

Herdson expects heated interest in the portfolio's properties. Economies in New Zealand and Australia have been growing rapidly, and it is not only homeowners who are feeling positive about the value of their assets.

In New Zealand, Property Council figures show commercial property investors received total returns of 18.13 per cent for the year to March 2005, while the New Zealand Stock Exchange produced returns of 20.73 per cent.

Investment cash provided by Australia's compulsory superannuation schemes initially had the effect of pushing up prices in Australia, and when that market was saturated they looked overseas, says Herdson.

New Zealand was one of the easiest targets, and prices were cheaper here. They still are, but the margin is less than it was. Local investors of all types have joined in the rush to commercial real estate, buoyed by a strong economy, stable interest rates and, among private investors, a generally increased feeling of wealth.

Poor returns from alternative investments have contributed to real estate's resurgence.

Herdson believes the property market will "keep bubbling along" fed by the sheer weight of capital, not just from Australia but from New Zealand's own super fund. Other drivers are investment companies and trusts, high-net-worth individuals, continuing confidence in the economy and, by extension, the ability of companies to keep paying higher rents.