Australian investors snapping up commercial property in NZ
Australia’s growing appetite for highvalue commercial property investment in New Zealand offers huge opportunities for local growth, says an overseas investment expert.
Richard Kirke, international sales director for Colliers International, says Australian capital was behind the largest deals in New Zealand last year, including the record- breaking $ 445m sale of t wo Westfield shopping centres on behalf of Scentre Group.
The transaction, brokered by Colliers International, was the single largest agency deal in New Zealand. Two Australian superannuation funds provided the capital while Stride Property fund manages the assets.
Other notable transactions include the $ 160.5m sale of the West City shopping centre to family- owned Australian business Angaet Group, and the $ 90,150,000 sale of Shore City to Australia’s Precision Group.
Kirke says these deals show investors from across the Tasman are increasingly looking to buy quality, high- value New Zealand assets.
“New Zealand’s commercial property market fundamentals are sound and the barriers to investment are relatively low, which makes our assets very attractive to large Australian in- stitutional and private investors.”
Australian capital is also competing well against higher- profile Asian investment, Kirke says.
“The key for New Zealand businesses is to develop strategies that maximise the potential for investment growth from across the Tasman,” he says.
“We may have strong business ties with Australia, but there’s no room for complacency — we need to maintain and build our relationships.”
Kirke, whose international property career has included a term as Colliers International’s Hong Kong managing director, says having the right talent on board is vital.
Colliers International recruit Blair Peterken has returned to New Zea- land after more than a decade in Australia’s commercial property sector. Peterken, whose most recent role was as head of JLL’s South Sydney office, has been appointed to the New Zealand- leading Capital Markets team, which focuses on high- value commercial property deals.
He brings a solid track record of multi- million dollar transactions to the team, which last year brokered a record $ 1.6 billion of transactions.
Peterken says a big part of his role will involve drawing on his strong relationships and extensive contacts in Australia.
“The Capital Markets team i s Colliers International’s topperforming New Zealand business unit, and I’m looking forward to helping it grow its market share,” Peterken says.
Colliers International Capital Markets national director Peter Herdson says he is thrilled to have a broker of Peterken’s calibre on the team.
“We’ve been looking for an energetic new talent to help grow our business, but we also needed someone with the maturity and experience to build and maintain close relationships with top national and multinational clients,” Herdson says.