New force in design-build market

Press, 18 December 1986, Page 34

New force in design-build market

Recently formed Archibald and Govan Investments, Ltd, the developer of Bisleys Industries’ new Shands Road premises, aims to become a major force in inner-city property development. Joint managing directors Messrs Bert Govan and John Fairhall are determined to provide a quality design, development and lease-back service for commercial lessees. The service involves identifying the lessee’s exact location and building requirements and putting together a complete "turn-key” package. Bisleys Industries’ building in Shands Road was a very good example

of a client’s needs being met in every detail, said Mr Govan. For its part, Bisleys Industries has been happy with the package. Bisleys South Island administration manager, Mr David Hall, said the company was easy to work with and readily acceded to a number of requests during construction to make the building even more suitable. “I believe they have completed their assignment in a competent and professional manner. We have a good package — very suitable, well sited premises,” he said. Mr Govan believes the trend of companies leasing, rather than owning,

their own premises will become common commercial practice in the years to come. “With the way the economy is moving, companies will be forced to ensure they are maximising the use of their capital resources. Leasing, as opposed to owning, keeps capital within the business, rather than tying it up in fixed assets, giving the company greater facility to operate profitably in its own field of activity,” he said. “Some of the largest companies in New Zealand are now operating this way — they recognise that property investment is best left to companies specialising in the field. It

is the way of the future.” He says it also makes it easier for companies to move into more modern and efficient buildings. Archibald and Govan Investments combines the resources of two Christchurch property investment companies formed by names more familiarly associated with the motor vehicle trade. Assets of the new property investment company include a substantial inner-city “land bank,” says Mr Govan. “We have a number of strategic riverfront sites which will be systematically developed. At present we are actively negotiating with two public companies and a private com-

pany regarding property developments for their respective operations.” Among Christchurch developments expected to be announced early in the new year are an office block, a new retail complex in the inner city, and a major motor dealership. Mr Govan says the new company’s policy will be development for .retention, rather than for onselling.

A current Archibald and Govan project is the South Island’s first office park, Bealey Park, in Bealey Avenue featuring five stand-alone two-storey office buildings in an extensively landscaped environment. Stage one of the project is complete

and fully leased. As with the Bisleys premises, the land acquisition and subsequent leasing arrangements have been managed by sole agents M. B. Cook and Coy which has been associated with lease-back developments for a number of years. “Bealey Park typifies the kind of development in which we will be involved,” says Mr Govan.

Archibald and Govan Investments, Ltd, also operates a superannuation fund management service, with particular expertise in property-related portfolios. The company’s staff includes a fulltime property portfolio manager, Mr Stephen Barry.