Header Ad Module

Collapse

Announcement

Collapse
No announcement yet.

Beaumont Quarter Leaseholders - Sucking On Lemons

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • #31
    Townhouse residents bid to buy their land

    4:00AM Monday Sep 28, 2009
    By Anne Gibson Residents of one of New Zealand's largest high-density housing estates are negotiating to buy their land.
    Townhouse owners in the 2.2ha 258-unit Beaumont Quarter estate opposite Victoria Park on the fringes of central Auckland want to freehold the site.
    They bought their homes on leasehold plots and are paying $3.1 million annual ground rent.
    Bruce Whillans, the national director of institutional investment properties for CB Richard Ellis, has run a campaign to sell the land and received 11 tenders which have been narrowed down to three bids.
    The site valued at about $50 million is owned by Beaumont Partners.
    If the $50 million price holds, owners could have to pay more than $190,000 each.
    "It's a very tidy asset because ground lessor interests have been widely sought after," Mr Whillans said.
    ." The property is under contract to a buyer and their interest is in freeholding it. It is always difficult to get 258 owners of the individual units to co-ordinate themselves to putting in a bid. Someone is buying it to enable the owners to freehold it."
    If the owners got their land, it could set a precedent, paving the way for other leasehold sites to be freeholded, he said.
    Beaumont Quarter Residents Society chairman Neville Corbett said no deals had yet been signed.
    Conditional arrangements were still under discussion and all subject to confidentiality agreements.
    "It's early days," he said. "There's a procedure going through at the moment."
    Other residents said a newsletter just issued to Beaumont property owners gave information on the prospect of freeholding the site.
    The cost of this would not be much more than the full annual ground rent, the resident claimed.
    Mr Corbett said this was "rubbish" but refused to say what price was being put on the deal.
    Nigel McKenna, of the Melview group of companies, developed the big Beaumont Quarter but kept the ground at the old gasworks site.
    A ground-rent increase from $900,000 a year to a proposed annual $4.4 million caused an outcry among residents who then battled to have it pruned.
    Apartments were selling at low prices and real estate agents cited the ground rent rise was as a reason.
    BEAUMONT QUARTER
    * Master-planned St Marys Bay precinct.
    * Residents pay $3,129,664.88 annual ground rent.
    * Site is 500m from city waterfront.
    http://www.nzherald.co.nz/property/n...ectid=10599963
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

    Comment


    • #32
      Originally posted by muppet View Post
      The site valued at about $50 million is owned by Beaumont Partners.
      If the $50 million price holds, owners could have to pay more than $190,000 each.
      "It's a very tidy asset because ground lessor interests have been widely sought after," Mr Whillans said.
      ." The property is under contract to a buyer and their interest is in freeholding it. It is always difficult to get 258 owners of the individual units to co-ordinate themselves to putting in a bid. Someone is buying it to enable the owners to freehold it."
      If the owners got their land, it could set a precedent, paving the way for other leasehold sites to be freeholded, he said.
      In my view there has always been a problem with freeholding leasehold land.

      There are two value components of any piece of land - the ownership of the land and the occupation of it. If you own and live on the land then you own both components. If you own the land but allow the occupation of it by someone else for payment, then you own the land and they own the occupation of it. If the value of the occupation is $x then your ownership value is the total value less $x.

      Many years ago I was looking at buying a Hillsborough property that was leasehold (the freehold owner was the Auckland Harbour Board). I was only interested in the deal if I could freehold the lease. They said that they would sell me the land at valuation. I then discovered that the valuation would be the total value (both ownership and occupation). Effectively I would be paying the current owner of the lease for the occupation rights that he currently owned and then paying the Harbour Board for those rights a second time.
      I could not get anyone else to see that this was not realisitic.

      Needless to say, I walked away from the deal.

      Comment


      • #33
        Beaumont land to be sold in $47m deal

        4:00 AM Wednesday Nov 18, 2009
        The Beaumont Quarter apartment complex sits on land divided into nine leasehold titles. Photo / Supplied


        Land under Auckland's 258-unit Beaumont Quarter apartment complex is about to be sold for about $47 million.
        The buyer is Innovus (Beaumont) whose directors are ex-McConnell International Property managing director Richard Stilwell, sharebroker Craig Greenwood and Shannon Walsh of Clearmont Capital Group.
        Innovus has a deal to buy the land from Beaumont Partner's Nigel McKenna, who developed the complex opposite Victoria Park.
        Apartment owners will then be able to buy the land under their unit from Innovus in a deal expected to fetch slightly over $50 million.
        Each owner will have the chance to freehold their land for an average $190,000 each although prices vary according to plot sizes.
        Neville Corbett, Beaumont Quarter Residents Society chairman, told residents about the Innovus deal and said they had achieved what many other leasehold owners thought was impossible.
        Corbett wrote to apartment owners telling them of the sale although he could give no prices.
        "Innovus (Beaumont) has advised that they have declared their purchase of the ground leases from Beaumont Partners unconditional with settlement scheduled for December and are now proceeding down the legal and technical path with the Auckland City Council and Land Information New Zealand to get the consents required to convert the nine existing Beaumont Quarter leasehold titles to individual freehold titles.
        "This means that you will be able to complete the purchase of your individual freehold title or change to an individual leasehold title with the option to freehold within a 12-month period.
        "Who would have thought 18 months ago when we learned of the massive ground rent increase that Beaumont Partners Ltd proposed to put upon on us, that we would now be in this position?
        "We will now be the envy of all other Auckland residential leasehold owners," he said, flagging big issues at Quay Park and Parnell when vast areas of Ngati Whatua leasehold land comes off long-term rent holidays in 2011.
        Corbett said he and fellow residents Denis Leong, Dean and Penny Fraser, Hamish McPherson, Alice McLeod, Tony Brown and Alison Jones had worked on the deal.
        Corbett also thanked the estate's complex manager, Ulf Behncke, who he said did everything possible to get contact details for the chairpersons of the various body corporates.
        He also contacted owners who live overseas and people who were hard to find.
        "All the Beaumont Quarter people involved in the freeholding process certainly made my job a successful one," he said, thanking the legal team, John Carter and Linda Yee.
        "My congratulations and thanks to us all for firmly grasping and approving the unique opportunity that was put before us.
        "May the Beaumont Quarter now settle into the period of peace and prosperity that we all deserve," Corbett said.
        http://www.nzherald.co.nz/news/print...ectid=10609880
        "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

        Comment


        • #34
          Good to hear good news but what amazes me is that people bought apartments with out a share of the land title in the first place!!!
          The mission of any business enterprise should include the aim to develop economic conditions rather than simply react to them.

          Comment


          • #35
            Adjourned hearing: IRD applies to wind up 15 Melview companies
            Defendant: Beaumont Quarter Management Services Ltd, Galway Hotel Management (Wellington) Ltd, Lighter Quay 123 Ltd, Melview Beach Road Ltd, Melview Beaumont Quarter Ltd, Melview Developments Ltd, Melview Halsey Ltd, Melview Holdings Ltd, Melview Log Farm Ltd, Melview McArthur Ridge Ltd, Melview Quadrant Management Ltd, Melview Unitower Ltd, Peninsula Road Ltd, Strand Management Services Ltd & Telpher Street Investments Ltd
            Directors:Nigel McKenna, Viaduct
            Applicant:Inland Revenue
            Adjournment date:Friday 19 March at 10.45am
            Other details: Counsel for the companies, Rob Hucker, sought a one-month adjournment. The applications have yet to be advertised. Mr McKenna’s Melview Waterloo Quadrant Ltd settled an application to wind it up in full a week ago and an application to wind up Melview Viaduct Harbour Ltdwas adjourned to Friday 12 March for settlement. Liquidators were appointed to Melview Featherston Street Ltd on 24 November 2009, followed by receivers on 27 November. 2 Kawarau Falls Station companies are in receivership. Other McKenna companies include233-245 Wakefield Street Ltd, Beaumont Partners Ltd, Chapel Ltd (incorporated August 2009), Domain Construction Ltd, Fernley Investments Ltd, Galway Auckland Property Services Ltd (incorporated in April 2009), Galway Hotel Management Ltd, Galway Property Services Ltd, McKenna Singapore Projects Trust Management Ltd, Phoenix Projects Ltd, Promanco Kenman (Auckland) Ltd & related companies, Shiraz Properties Ltd & Watermark Developments Ltd.
            http://www.propbd.co.nz/afa.asp?idWe...&SID=946050316
            "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

            Comment


            • #36
              No more ground rent for owners

              4:00 AM Wednesday Mar 10, 2010 Land at one of New Zealand's largest high-density housing estates has been converted from leasehold to freehold title.
              Beaumont Partners, directed by Auckland developer Nigel McKenna, has sold land at the 258-unit Beaumont Quarter estate opposite Victoria Park.
              The property featured after annual ground rent fees rose from $900,000 to $3.1 million. So the townhouse owners and a business have completed the legal process of buying the large plot.
              Companies Office records show vendor Beaumont Partners is owned by many parties including Beaumont Trustee Company, Bayley Corporation of 4 Viaduct Harbour Ave, Martyn Reesby of Remuera's 118 Victoria Ave and Augusta Funds Management of 35 Chancery St.
              Beaumont will not get any more ground rent.
              Townhouse owners in the 2.2ha on the fringes of central Auckland said the days of paying leasehold ground rent fees were over.
              Neville Corbett, chairman of Beaumont Quarter Residents Society, said all the units and carparks now had individual freehold titles.
              But Corbett said not every unit owner had bought the land.
              "A majority of the owners have taken up their own freehold titles with the balance of the freehold titles being with Innovus (Beaumont). The remaining leasehold owners have a one-year period to either purchase their freehold title from Innovus, sell on the freehold market without having to fund the freehold with the purchaser settling directly with Innovus, or remain as a leasehold owner." Ulf Behncke, the on-site complex manager, would carry on with the campaign to improve the common areas of the complex, Corbett said.
              "You can assist by keeping your courtyards and decks in a clean and tidy condition," he told residents.
              Apartments in the quarter were selling at low prices, a problem real estate agents blamed on big ground rent payments which made renting units an uneconomic option for investors.
              http://www.nzherald.co.nz/business/n...ectid=10630963
              "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

              Comment


              • #37
                Originally posted by flyernzl View Post
                In my view there has always been a problem with freeholding leasehold land.

                There are two value components of any piece of land - the ownership of the land and the occupation of it. If you own and live on the land then you own both components. If you own the land but allow the occupation of it by someone else for payment, then you own the land and they own the occupation of it. If the value of the occupation is $x then your ownership value is the total value less $x.

                Many years ago I was looking at buying a Hillsborough property that was leasehold (the freehold owner was the Auckland Harbour Board). I was only interested in the deal if I could freehold the lease. They said that they would sell me the land at valuation. I then discovered that the valuation would be the total value (both ownership and occupation). Effectively I would be paying the current owner of the lease for the occupation rights that he currently owned and then paying the Harbour Board for those rights a second time.
                I could not get anyone else to see that this was not realisitic.

                Needless to say, I walked away from the deal.
                Do you know if the land was eventually sold ?

                Comment


                • #38
                  No idea.
                  It was out in Hillsborough, Auckland. At that time the Harbour Board owned substantial land in that area.

                  Comment


                  • #39
                    Originally posted by flyernzl View Post
                    No idea.
                    It was out in Hillsborough, Auckland. At that time the Harbour Board owned substantial land in that area.
                    Do you own any lessors interest where you receive rental from leasehold property ?

                    Comment

                    Working...
                    X