Chase subsidiary to sell 250ha Auckland land

Press, 5 April 1989, Page 36

Chase subsidiary to sell 250ha Auckland land

PA Auckland More than 250 ha of Auckland-area real estate has been put on the market by a Chase Corp subsidiary, Universal Homes. The company invited bids for its entire stock of land today — for 2500 sections. It puts the value of the land at $2O million. However, it was unlikely that all the land would be sold. Universal said its current land-hold-ing was enough to last it eight to 10 years, and wanted to sell enough to leave it with three or four years supply. The land was up for tender and once the bids

were in Universal would decide how much to sell, it said. The move did not mean it was planning to cut its activities, the company said.

The agent for the sale, Jones Lang Wootton, was advertising in Australia and Asia as well as this country, seeking offers for 26 separate parcels of land which range from o.sha to 31ha, with room for anything from six to 455 sections. Prices were expected to be between several hundred thousand dollars for the smaller sites and several million for the largest. The sale included raw

land as well as sites that were fully developed and ready for/sale as sections. Other blocks were at various stages of development, Universal said. Managing director Louis du Plessis said Universal had not decided what to do with money from the sale. The money could be kept within the company to improve liquidity, used to diversify Universal’s operations, or repatriated to parent company Chase Corp. He said Chase had not pressured Universal to put the land on the market. Most of the land was on the fringes of the greater Auckland area, largely in

the south and west, with two properties on the North Shore. The properties were bought over the last 15 years, with the lowerpriced end of the housing market in mind. But, Universal said, much of the land now had potential for mid-market development. Mr du Plessis said the sale would not flood the Auckland market and depress prices. Last year 7000 new houses were built in the area, he said, and demand for sites was strong as opportunities shrank for infill housing in established areas. Potential buyers have until May 5 to lodge their tenders.