| Commercial
Property Investment
The ideal commercial property investment property
should feature good reliable returns, sound tenancy
arrangements, long leases, well-constructed buildings,
high profile locations, quality management and appropriate
exit strategies.
Investment Services
manages three commercial property investment companies
on behalf of Shareholders. Each of these properties
exhibits the key features of a quality commercial property
investment company. All properties benefit from
competent ‘hands on’ management. When
issues arise we are able to minimise any negative impact.
Our management strategies are focused on developing
the full potential of each property within each company.
Commercial
Property Investment Market Commentary
Over
the past 12 months commercial property as an asset
class in New Zealand has continued to gain in popularity.
This has seen commercial properties producing a lower
yield on purchase price as demand for property has
increased. The increased demand has also seen the
capital value of property appreciate.
There have been a number of prime commercial
property sales that have sold on a 7% to 8% return on
the purchase price. When compared to previous years
when a similar property may have produced a yield of
9% to 9.5%. The NZ retail market has continued to remain
buoyant with continued strength in the NZ economy overall,
and this has sustained the demand for property.
The current market makes the identification
of new properties with appropriate returns on investment
more difficult to secure. Investment Services is committed
to selecting only properties that possess the key attributes
of a quality property investment that will perform well
for investors. The Investment Services property portfolio
consists of a group of carefully selected properties
in good locations. Where possible the manager
has diversified the portfolio, with a spread of properties
throughout the country to make the most of market conditions
in the different areas.
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