Two new directors expand Bayleys’ valuation service
Carl Waalkens and Nick Thacker have joined Bayleys Valuations Ltd with a directive to prepare the company for changes rapidly unfolding in the sector. Both men were in similar roles with JLL, with 18 years’ experience there.
Waalkens says larger New Zealand property entities — including Goodman Property Trust, AMP, PFI, several Maori iwi, and Augusta — increased commercial and industrial property portfolios following 2013.
The larger portfolios — mostly in Auckland, Hamilton and Tauranga — have generated additional demand for valuation services in areas of financial and shareholder reporting, insurance purposes and refinancing.
“With several more years of construction work still in the pipeline — particularly in Auckland — the need for high- end services will remain strong,” Waalkens adds.
“Concurrent with this growth, additional work has come from offshore. South- east Asian and European markets are buying more New Zealand property than ever, and seeking the relevant documentation.”
In addition to targeting the corporate sector, BVL will soon restructure personnel into sector- specific teams to encompass property types such as childcare centres, education use premises, boutique CBD high street and suburban bulk retail locations, warehousing, heavy and light manufacturing, and multi- tenanted commercial.
Bayleys Valuation Services employs 15 valuers, including a team in Wellington. Additional growth in demand for insurance valuations followed the Kaikoura earthquake at the end of last year, Waalkens points out.
“The physical impact that the earthquake had on the Wellington commercial scene sent a degree of nervousness northward.
“While earthquakes are relatively rare in Auckland, global insurance underwriters view New Zealand as ‘ one location’ — with little geographic differentiation between Christchurch, Wellington and Auckland. Hence, they’re seeking updated valuations on hundreds of the bigger Auckland assets,” he says.
Meanwhile, across the entry- level to mid- range tiers of the commercial and industrial property markets, Thacker sees retail banks taking a more cautious approach to their funding allocations, particularly in seeking more professional valuation reports from potential borrowers.
“It’s a trend which first emerged in the second half of 2016, and has definitely become more prevalent this year,” Thacker says.
“The banks are actively directing potential borrowers to seek valuations from reputable valuation practices. With Bayleys Valuations already on the major banks’ recommended valuer panels, and with more work coming through as a result of the stringent lending application criteria, the workload justifies growing our personnel resourcing and breadth of capabilities to service this segment of the market.”
Thacker says ground lease rental reviews generate additional work. In particular this applies for the scores of businesses operating from leasehold premises around Auckland’s waterfront .
“With the first of those early ground leases coming up for review many tenants wish to evaluate continued occupancy, perhaps examining inflated total occupancy costs and how their terms and per- squaremetre rates compare to similarlysized premises in adjacent locations,” he says. Brokers say a former medical centre for sale at West Harbour could interest owner/ operators, commercial investors or developers.
Now vacant, the corner site at 40 Luckens Rd i s being marketed by Harveys commercial and industrial sales and leasing salesman Meir Alfassi.
Alfassi is confident of strong interest, pointing out that Auckland’s west is booming.
“As the population grows so does the need for services in the area.”
With a floor areas of about 187sq m, the property was built as a residential dwelling, then converted to office accommodation. It has concrete foundations; brick veneer/ cedar weatherboard cladding; aluminium joinery and a standard profile iron roof.
“At the entrance, we see a generous covered canopy area and a covered deck runs along the southern, western and northern elevations. The internal layout encompasses a reception/ waiting area; five consultant rooms; treatment room; staff room and male and female amenities.
“Finishing includes carpeted areas, textured plasterboard lined walls and plasterboard lined ceilings. There’s five wall mounted heat pumps, a central ventilation system and mounted ceiling rotary fans take care of all air conditioning needs.
“The property offers, a very decent sized piece of land at 816sq m. Rates are about $ 6800pa, while insurance is now set at $ 2240. Twelve open carparks are marked out. And with t wo road frontages, it has both a vehicle entrance and exit,” he says.