Welcome to Resident Properties first newsletter following the successful capital raising in September 2019. We will provide a newsletter on a quarterly basis to provide you with regular updates on the companies progress.
Thank you for investing with us, we appreciate your commitment.
PROJECT UPDATE
Since September, work has started on Resident Properties’ first project at 34 Edwin Street, Mt Eden, Auckland.
Following a ‘ground breaking’ ceremony, Haydn & Rollett established on site, followed by piling rigs and subcontractors. Over the past 10 weeks, piling has been completed and a retaining wall has been constructed and back-filled on the Western boundary next to the Eden Business Centre. Footings are currently being poured.
In terms of the finer details, the management team is working closely with the designers to ensure the building will require low levels of maintenance while retaining high levels of quality in the apartments.
Smart thinking such as wider front doors to enable easier furniture moves, hallway wall protection, robust foyer finishes, hard wearing floor coverings and durable kitchens are all been considered. This is being complemented by careful selection of appliances and window furnishing to ensure good long-term quality and performance.
The Auckland residential market appears to be showing signs of a resurgence with many real estate agents reporting increased listings and transactions. The current lower interest rate environment is certainly an important factor in this.
The same can also be said for rental demand. Feedback we’ve had from local leasing agents is that demand for good rental property still greatly outweighs supply. As Auckland continues to develop and grow, we are not anticipating that this will change.
In summarising, the most recent REINZ Property Report in October saw the Auckland region experience the highest median house price in 19 months at $868,000. This was a 0.8% lift on the median price seen last October and a 2.4% lift on the median price from September this year. Looking across the Auckland region, Auckland City saw the highest median price in 28 months with a 4.6% annual increase to $1,001,000.
ASB Bank are forecasting a lift in Auckland house prices in 2020 with further gains in 2021.
ANNOUNCEMENT
We are pleased to announce that Bailey Baker has agreed to join the Resident Properties Board with Wendell Philips as Bailey’s alternate Director.
Bailey and Wendell have significant business and investment experience and are investors in Resident Properties.
We look forward to working with them both as the company progresses – certain that they will bring great insight to Resident Properties and assist in the creation of value. You can find out more about Bailey and Wendell below.
Bailey’s background includes buying and merchandise in the fashion industry in NZ, before moving overseas to work for a large international recruitment firm.
After returning to NZ she took up the CEO position of the Phillips Family investment business. She has extensive experience in managing a substantial residential property portfolio as well as commercial property investing. In addition, she has helped create and manage investments in a large range of operating businesses.
Wendell is an experienced investor with a background in the building supply and hardware retail industries.
He is a long-term property investor, having been one of the original shareholders in Direct Property as well as on its Board for a number of years.
His family interests include investments in a number of private and public companies.
We are considering a number of new opportunities suitable for the build to rent market with an absolute focus on Auckland in city fringe locations and in developed civic centres. In particular, we are reviewing sites in Newmarket, Takapuna and Manukau City.
