Bob Dey has reported on the first of the Quay Park arbitrations to be released in his property report.
Parnell Terraces at 18-24 The Strand is one of 5 apartment developments on the former railway land at Quay Park on which former High Court judge Robert Fisher has made decisions as arbitrator. He’s also decided valuations on the GE Finance & BNZ buildings, which haven’t been released.
The Ngati Whatua valuers, Sean Molloy of Extensor Advisory & Reid Quinlan, have been more or less vindicated. The landlord’s valuers put values of $13.4 million & $13.402 million on the Parnell Terraces land.
Valuers for the body corporates, Iain Gribble & Nigel Dean, were going for $7.5 million from Mr Gribble and $6.116 million from Mr Dean. End result:
The Parnell Terraces ground rent was fixed under arbitration at $760,670/year – 6% of the assessed land value of $12,344,500, for 7054m² of land at $1750/m².
Pretty close to the landlord’s figure.
Good example, btw, of how malleable and subjective valuations can be, driven by who is giving the instruction. These are all experienced valuers, sitting absolute poles apart on the same ground. Had they been instructed by the opposite parties, would their positions have reversed? They might argue not. I’ve seen different often enough, although not from those valuers specifically.