Developers are having a rough time

Developers seem to be having rough time with the banks. The
banks have become ultra-cautious. Nine months ago they were
very anxious to fund developers with generous
deals. But now the funds have totally dried up. Neither
position makes a lot of sense. This reminds me of Mark
Twain who rightly said that "A banker is the person who
lends you his umbrella when the sun is shining and wants it
back the minute it rains ".

Banks can't be blamed altogether. Whilst some of the
problems are of our own making, especially in the finance
industry, the repercussions from the US sub-prime mortgage
debacle are not. Yet they illustrate once again that we
live in a global village, and that stupidity and greed on
the other side of the planet can cause problems for those
far away and unconnected.

Banks in the current climate of uncertainty will only fund
those development projects that are financially viable. I
have a prime freehold redevelopment site of 3360 m2 on the
corner of Great South and Redoubt Rd opposite the West
Field Shopping Center in Manukau for sale that has the
ingredients that will pass bank's muster.

The vendor has drawn up plans for developing a six level
building with basement car parks. The total proposed
building area is 8585 m2 consisting of retail on ground
floor and hotel/ office suits on higher levels. Quest is
very eager to sign up lease for the 54 hotel apartments.
This along with retail on the ground floor makes this
development a very viable proposition for a developer even
in current market conditions.

The demand for retail and office space in Manukau is very
strong. I have also been informed by hotel operators that
there is shortage of rooms in Manukau and hence interest
from Quest. This along with location of the site makes this
project very viable. Vendor has informed me that there are
no height restrictions for this site although this fact
will need confirming from the council.

In case the property is of interest to you for either
development or land banking please let me know. I will
email the plans on request.

Kind regards

COLIN KUMAR
Commercial/Industrial
Barfoot & Thompson Commercial
m. 027 684 1114 | p. 09 358 0989
f. 09 358 4048
c.kumar@barfoot.co.nz | www.barfoot.co.nz