Auckland office plans to stay on drawing board
Colliers research director Alan McMahon says recent finance company collapses are likely to cause a reduction in the number of new office developments in Auckland.
Other researchers have recently highlighted how a high number of planned developments may create a glut of office space.
Over the past couple of years during a period of declining vacancy rates there have been a number of proposals from developers planning to bring more than 250,000sq m of new space to Auckland. Mr McMahon said that amount would more than double the southern corridor's existing stock.
"But the global credit crunch and the demise of 30 New Zealand finance companies, triggering an unprecedented tightening of development finance, means many of these projects will never leave the drawing board. In our estimation only 80,000sq m of new space is likely to be available."
He said continuing strong demand for good quality metropolitan office property was still driving a dramatic drop in vacancy rates which his research shows have fallen to a record low of 5.3 per cent after a surge in leasing. McMahon says rents are rising and new developments have been leased before they are finished.
But he also warns of volatile times and says the immediate past may not be a reliable guide to the future. Property investors should not assume that just because tenants are paying the rent they are immune from falls in property values.
"It is clear that people have been encouraged to put their money into higher- risk investments than was prudent. This is a recurring theme for New Zealand savers and their advisers, who often seem to have trouble distinguishing prime from subprime, or blue chip from Blue Chip."
The value of secondary properties has fallen because they were over-priced as risks were ignored. Tenants are more cautious, especially retailers and this has spread to the office sector.
"Landlords feeling sorry for themselves might like to reflect that Colliers International's rent indices have shown fantastic growth recently."
Rents in Auckland's prime CBD offices have climbed 31 per cent in four years. In Wellington, tenants are paying 44 per cent more than in 2004.
Mr McMahon said that despite everything, fundamentals for the office sector remained strong and it continued to outperform all other property categories. The Property Council's Investment Performance Index shows annualised returns of 18.3 per cent across all major property sectors for the year to March.
Recent big purchases include funds management group Orchard Funds Management increasing its investment in New Zealand to more than $200 million when it bought Eden Business Park in Mt Eden last year for $102.6 million. Orchard pans to develop more buildings there
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Anne Hathaway finally got smart.
The "Devil Wears Prada" star has ditched her Italian rapscallion boyfriend after four years of suffering through his innumerable brushes with scandal and bad publicity, it was reported yesterday.
Hathaway finally decided to part ways with shady real-estate peddler Raffaello Follieri because of the effect his business dealings could have on her blooming career, the Daily Mail of London reported.
"It's heartbreaking for her to dump him, and she's devastated that it's come to this, but she really didn't have a choice. His scandals were hurting her reputation," the paper quoted an unnamed source close to Hathaway, who stars in "Get Smart," which opens Friday.
A source familiar with the situation told The Post, "Her dad has hired PIs and has been after her for a while to do it."
Hathaway's spokesman declined to comment on the report. Follieri was in Italy yesterday and could not be reached for comment. His spokeswoman did not return calls.
The split comes a little more than a week after The Post revealed that state Attorney General Andrew Cuomo was investigating Follieri's charitable foundation.
Hathaway had, until recently, sat on its board of directors.
The 29-year-old shyster was also arrested in April for allegedly kiting a $215,000 check to a New Jersey real-estate magnate. The charges were later dropped after Follieri made good on the rubber check.
He has also been sued by California supermarket mogul Ron Burkle in Delaware courts over a multimillion-dollar joint real-estate venture that went sour.
Burkle accused Follieri in a civil suit of misusing some $55 million from the venture, in which they planned to make money buying and reselling properties owned by the Catholic Church.
The money allegedly funded a lavish jet-set lifestyle that helped catch the eye of Hathaway. They started dating in 2005.
Follieri also recently battled in a Washington, DC, court with a PR firm that represented him during the Burkle entanglement.
He was ordered to pay nearly $240,000 to the Carmen Group after he was found in default last December.
He was also sued by a New Jersey private-jet service that claims Follieri's joint venture with Burkle - Follieri Yucaipa Investments LLC - failed to pay $458,852 in chartering costs for nine flights between September 2007 and January 2008.
Paraguayan javelin thrower Leryn Franco wowed the catwalk this week. leryn franco breast catwalk The 26-year old model, who competed in the 2008 Beijing Olympics in August, worked the catwalk in revealing tops and sexy lingerie at a recent fashion show.
The leggy Leryn has been a part-time model and bikini contestant for years while competing in javelin events.
In 2006, she was the runner-up in the Miss Paraguay beauty pageant and Miss Bikini Universe contest. Leryn became an Internet sensation this summer, thanks to her athletic good looks, and it looks like her newfound notoriety has helped boost her modeling career.
"Modeling is a way for me to continue with my sport," Franco said. "The hours are flexible, and you can earn good money through photographic modeling and the catwalk."
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In 2004, Franco competed at the Athens Olympics, where she placed 42nd overall. Leryn's personal best throw is 55.38 meters, achieved in May 2007. Leryn was born 1982 in Asunción, Paraguay. Her full name is Leryn Dahiana Franco Stenery, and she's 5'8" tall and 123 lbs.
In 1998, Franco set the Paraguayan national records for javelin and triple jump in the under-17 age group. In 2001, Leryn won the South American Junior Championship for javelin. She has competed in javelin and track since she was a teen.
Leryn is reportedly dating Novak Djokovic, a 21-year-old Serbian tennis player who's currently ranked No. 3 in the world. The 6'3" Djokovic, who makes his home in Monaco, won his first Grand Slam title at the Australian Open in January 2008. The sizzling duo were seen walking around hand-in-hand at the Olympic village in Beijing this summer.
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