Forum Archive Index - June 2001

["Michael Gore" <michgore@paradise.net.nz>]

Hi again Hugh!
Correct me if I'm wrong but I think I recall you mentioning in this column
you live in the Christchurch area.  Do you ever look through Wellington's
Evening Post?  Every week, I think on Tuesdays, there is at the back of the
business section a few pages dedicated to commercial property.  Now I'm not
a religious reader of this section and I usually just look through and then
chuck it away but I recall generally positive reports about growing demand
for commercial space in Wgtn which would have to be good news for Cap Props
wouldn't it?  I wonder if the paper receives advertising revenues and is
predisposed to run bullish items?  Perhaps also at a quick glance it is
difficult to separate articles from advertising features.  Capital
Properties made a nice little run up to 96c or so recently which I had
assumed was due to the increasing demand in Wellington for office space that
I had been reading about in the paper.  When this share dropped down below
90c in the last few weeks, I had considered buying some.  Maybe I'm a little
off the mark.  I tried to look up some archived articles on the Stuff
website so I could post a link or two but sorry didn't seem to be any at
present.  But definetely there have been items printed suggesting growing
rental demand.  I am still trying to get my head around reasons why value of
both commercial and residential property in Wellington has been rising
against national trend.  Anyway your original post was interesting to me
because of this.  Cheers Michael


----- Original Message -----
From: "hugh webber" <hugh.webber@clear.net.nz>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, June 20, 2001 6:21 AM
Subject: Re: [sharechat] a closer look at Capital Properties Annual Report


> hi Michgore,
>
> Overrenting is when a property is rented out on a fixed long term
> contract for a rent substantially higher than equivalent properties
> in the same area.
> It happens when a party seeks space at a time of growth and
> high demand or simply miscalculates and locks themself into
> a rent contract while the property market then goes the other
> way because of a change in market conditions, extra space
> being built or maybe other tenants emigrating.
>
> At first you can pretend it doesn't exist as Cap Props has for
> a while but eventually you have to front up, lower valuations,
> sell if you can or find replacement tenants at a lower rent.
>
> At that point the shareholders become rather angry that the
> truth wasn't told all the way through.....
> I wonder if we have any comeback against the NZ Govt for
> concealing it in the float prospectus and against Cap Props
> for concealing it in the Shortland Takeover prospectus....
> Intriguing thought.
>
> cheers,
> Hugh
>
>
> --------------------------------------------------------------------------
--
> http://www.sharechat.co.nz/          New Zealand's home for market
investors
> --------------------------------------------------------------------------
--
> To remove yourself from this list, please use the form at
> http://www.sharechat.co.nz/forum.shtml.
>


----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.