Vendor report
109 New Homes, Auckland and Wellington
Week one: 07.02.2025 – 14.02.2025
Vendor Kāinga Ora
Salespersons Gerald Rundle, Jason Seymour and Grant Young
Weeks on market One
Method of sale Deadline Private Treaty (will not be sold prior) closing 4pm, Thursday 13th
March 2025 at Bayleys House, 30 Gaunt Street, Auckland
bayleys.co.nz/1698758
Residential /
Commercial / Rural / Property Servic
1
es
Campaign overview
Friday 14th February 2025
Dears 9(2)(a)
The public sale campaign launched last Friday 7 February with the launch of Bayleys Total Property. The first
newspaper advertisement was published on Saturday 8th February with a large 10 x 11 full colour advertisement on
the front page of the One Roof property section. All other marketing channels both print and online are fully
operational.
The Total Property Magazine has been distributed to the nationwide investor database of over 19,700.
The Information Memorandum was approved by Kāinga Ora on Tuesday 11 February and our focus since then has
been to get this document distributed to our target investor list of 298 groups, predominantly in the following sectors
(onshore and offshore)
• Private investors, particularly value-add
• Corporate and institutional investors interested in alternative asset classes
• Asset managers seeking acquisition opportunities for wholesale capital partners
• Iwi groups
• CHP’s
In addition, introductory emails have been sent to our full investor database and all active Bayleys agents have been
briefed.
At this point, we are very pleased with the initial response the marketing and our direct contact effort generating
some good initial interest. Multiple parties have engaged, with several of them already reviewing information in the
dataroom.
We have assisted one party with a physical site inspection of the Auckland properties. Feedback from the inspection
was positive with general comments that all developments were very similar in style/feel/design/finishes etc., They
commented that they felt the market was flooded with this type of property currently with many similar
developments having unsold residual stock with downward pressure on prices.
We noticed that many of the outdoor areas of the Auckland properties are overgrown with large weeds and non-
maintained grass areas. We should discuss opportunities to remedy this during our call next week.
In summary, there are around 30 groups we are actively working with to assist them in their reviews of the portfolio.
It is early days, but we are pleased to see this includes interest from all sectors including some of the world’s largest
investment funds looking to pull together a long-term residential investment fund, to private capital looking for a
wholesale to retail margin.
Many of the questions so have followed a consistent theme:
1.
Current owner background and circumstances under which the portfolio was formed so as to understand how
motivated the vendor is to sell. There is widespread assumption (either guessing or genuine knowledge) that
these are Kāinga Ora/KiwiBuild related.
2.
Are the KiwiBuild properties built to the same specification as the rest of the properties in the developments. If
not, how do they differ.
3.
Ability to buy parts of the portfolio
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4.
Pricing, including whether there is an asking price and what the Crown paid to acquire the properties
5.
Whether registered valuations can be provided
6.
Whether the portfolio can be scaled up as the current portfolio is too small to pull in the larger global investors
like Blackstone who have enormous residential investments in other countries
7.
GST status
8.
Preferred vendor terms of sale, particularly settlement.
9.
Seeking a view on acquisition funding
For this first report we have not ranked the buyer enquiry (see attached) but will be doing so over the coming weeks
as we go deeper into understanding buyer interest and commitment. There has been some specific feedback, and
this includes commentary from groups who initially seemed interested but on further consideration declared no
further interest:
1.
Portfolio value has been a key topic with most noting that they will have to acquire at a price that reflects the
risks including funding costs, uncertain buyer demand, general market uncertainty and the current over-supply of
comparable housing typologies. Some have indicated an unwillingness to put too much time into the opportunity
on the basis that they think their pricing would be uncompetitive or the vendor would not sell at the level of
discount they would need to take on the risk. Some have indicated the discount would need to be 50% or more.
2.
Most groups seem to be considering the whole portfolio rather than parts.
3.
Some investors will need to discuss the acquisition with their banks as they think it will be difficult to fund. This
concern aligns with a discussion we had with one of the main banks this week which was that it would likely not
lend on the acquisition unless for some specific existing customers either with substantial equity or ICR
headroom on an existing portfolio.
4.
One offshore party (with local representation), is aware of the current challenging publicity around Kāinga Ora
and the potential political and public interest this portfolio sale may attract. They do not want to associate their
offshore capital partner to the potential unfavourable public exposure the sale might attract.
Next week, our attention will turn from information distribution to active follow-up with investors and working closely
with those groups already engaged.
There are several matters which we have been addressing with you this week which we would like to resolve as early
as possible next week:
• Confirmation of the GST status
• Approval of the financial pack including rental appraisals
• Review of the draft SPA issued today.
• Any further information available on the recently acquired development at The Green, Glen Eden
• Supply of sample LIMS
We look forward to discussing this report with you further on Monday
Gerald Rundle
Jason Seymour
+64 27 286 4620
+64 21 607 999
[email address]
[email address]
BAYLEYS REAL ESTATE LTD, AUCKLAND CENTRAL,
BAYLEYS REAL ESTATE LTD, AUCKLAND CENTRAL,
LICENSED UNDER THE REA ACT 2008
LICENSED UNDER THE REA ACT 2008
Grant Young
+64 21 988 613
[email address]
CAPITAL COMMERCIAL 2013 LTD, BAYLEYS,
LICENSED UNDER THE REA ACT 2008
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Marketing activity
Magazine
Date
Total Property magazine + e-magazine – Bespoke Double Page
07 Feb 2024
Print media
Date
NZ Herald OneRoof Commercial press advertisement (Saturday) 10cm x 11col
08 Feb 2025
The Dominion Post - Commercial press advertisement Saturday 3 x 6
08 Feb 2025
NZ Herald OneRoof Commercial press advertisement (Saturday) 10cm x 11col
15 Feb 2025
The Dominion Post - Commercial press advertisement Saturday 3 x 6
15 Feb 2025
NZ Herald OneRoof Commercial press advertisement (Saturday) 10cm x 6col
22 Feb 2025
The Dominion Post - Commercial press advertisement Saturday 3 x 6
22 Feb 2025
NZ Herald OneRoof Commercial press advertisement (Saturday) 10cm x 6col
01 Mar 2025
The Dominion Post - Commercial press advertisement Saturday 3 x 6
01 Mar 2025
Digital media
Views
Bayleys
265 views
TradeMe
716 views
OneRoof
147 views
Realestate
842 views
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Advertising examples
Total Property magazine – 07 Feb 2025
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Advertising examples
Capital Markets eDM – 10 Feb 2025
430
55.81%
10.93%
Sent
Open rate
Click rate
24
Advertising examples
Corporate Projects eDM – 13 Feb 2024
179
24.0%
4.1%
Sent
Open rate
Click rate
25
Advertising examples
NZ Herald OneRoof Commercial press advertisement 10cm x 11col
26
Advertising examples
The Dominion Post - Commercial press advertisement 3 x 6
27
Advertising examples
bayleys.co.nz
Activity report 07 Feb – 13 Feb 2025
28
Advertising examples
Trademe.co.nz
Activity report 07 Feb – 13Feb 2025
29
Advertising examples
Oneroof.co.nz
Activity report 07 Feb – 13 Feb 2025
30
Advertising examples
Realesate.co.nz
Activity report 07 Feb – 13 Feb 2025
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Bayleys Auckland Central
Bayleys House, 30 Gaunt Street,
Wynyard Quarter
09 309 6020
[email address]
Disclaimer: The information contained in this report is given in good faith and is derived from sources believed to be reliable and accurate. However neither
Bayleys nor any person involved in the preparation of this report accepts any form of liability for its contents.
Residential /
Commercial / Rural / Property Services
Document Outline
