Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Jardine BNZ Auction Signals End Of Era



Eleven Bank of New Zealand branches will go under the auctioneer's hammer in Auckland this Friday [October 15], signaling the end of the BNZ's era of branch sale-and-leasebacks.

The branches - Kaikohe, Kerikeri, Dargaville, Milford, Henderson, Glen Eden, Avondale, Frankton, Whakatane, Gisborne and Paraparaumu - are for sale through corporate services company Colliers Jardine.

Colliers Jardine sold 45 BNZ branches in 1996 and another 26 earlier this year, and with enquiry levels similar to those of previous campaigns, director Mr Michael Judd is predicting "all branches will sell under the hammer this Friday.

"This is the last chance for investors to own a Bank of New Zealand branch on a six-year leaseback term, plus three rights of renewal, each of three years."

He said interest has traditionally come from local people, who tend to have the best view of the strength of their own regional economies.

Mr Judd said branches sold in previous auctions were now coming up for their first rent reviews, and some existing owners, impressed with the performance of their investments, have indicated they will be at Friday's auction to add to their portfolios.

Their initial yields have ranged from about eight to about 14 percent, with the average about 11 percent.

"The message to investors is if you're interested be at the auction - the branches will be sold," said Mr Judd. "The Bank has historically proven to be a willing seller."

Bank of New Zealand head of corporate real estate, Mr David Browne, said there will be no change to the operations of the branches - the Bank simply becomes the building's tenant, rather than the owner.

The sale-and-leaseback programme frees up funds to allow the Bank to concentrate even more on looking after the needs of customers.

The auction starts at 11am on Friday at the Hyatt Regency in Auckland.

Four other Bank of New Zealand branches - New Plymouth, Hastings, New Brighton and Timaru - are for sale through Colliers Jardine by deadline private treaty, with offers closing the following Friday, October 22.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>


Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>


I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>


Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>


Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news