Westpac Building, Hamilton
This property was acquired at the end of the late 1990s recession. At the time, buyers were scarce and this was a high-value purchase in the Hamilton market.
The fundamentals, however, were excellent. Oyster negotiated a price of $9,200,200. With a net income of over $1.1m p.a., the property showed a return of 12.32%. After the leverage benefits of a 45% first mortgage at a floating rate of 7.1%, the return was an impressive 15.05% after acquisition costs. Offered to prospective investors in unprecedented lots of $400,000, it quickly sold out.
Well maintained, with sound fundamentals, the building continues to be well tenanted today. Current tenants include Oyster’s Solicitors, Tompkins Wake, and Westpac Bank who still benefit from naming rights. The property was valued at $17,1500,000 in 2011.