VALUE OF PROPERTIES

New Zealand Herald, Volume LXXII, Issue 22165, 19 July 1935, Page 16

VALUE OF PROPERTIES

CLAIMS BEFORE COURT 1 ■ fe LAND FOR STREET PURPOSES CITY COUNCIL ACQUISITION In order to determine the value of two properties, one a vacant section and the other a section with a building on in, taken by. the City Council from the Harbour Board, a sitting of an Assessment Court was held yesterday. The sections were those taken for the purpose of making a continuation of Gore Street through to Quay Street. Mr. Justice Callan presided and had with him as assessors Mr. W. H. Limn for the City Council, Mr. H. E. Vaile for the Harbour Board and Mr. J. A. Gentles for J. C. Spedding, as beneficial owner of the New Zealand Reed Loom Company's building. The City Council was represented by Mr. Stanton, the Harbour Board by Mr. Barrowclougli and J. C. Spedding by Mr. Meredith and Mr. McCarthy. The Harbour Board claimed from the City Council a sum of £11,495. made up of £6602, value of lot 133 and part of lot 132, and £4893 as the value of the board's reversionary interest in lot 134. The area of lot 133 and part of lot 132 was 10.3 poles and the area of lot 134 was the same. J. C. Spedding also claimed from the City Council £11,250 compensation for tho loss suffered through the taking of the New Zealand Reed Loom Company's building. The lease was a 50-ycars one and 20 years of it are still to run. Counsel Reviews Position His Honor said it had been agreed to hear the two claims together, although they were really being heard by different Courts. Mr. Barrowclough Baid the sections had been taken by proclamation. One of tho sections had a five-storey buildon it, and the other had a building on it, but it was agreed between tho parties that that building had no value. It was found that the old surveys were in error, and tho land actually taken involved slicing off existing walls. To avoid this, it was arranged that tho land actually taken should be between the walls and should include just a shaving off lot 132. The land taken had a frontage of approximately 65ft. on Quay Street, said counsel, and a depth of 85ft. The Harbour Board had lost tho use of a wall, and he submitted that landlord and tenant together had lost half the value of the wall. The lease of the Reed Loom building would expire in October, 1955, and it was provided that the lease would then revert to the Harbour Board, subject to tho obligation on the part of tho board to pay to the lessee half the then value of the building.

Improvement of Area The area by the wharves in which these buildings were had recently been greatly improved. The board had had to pay a substantial sum to the Railway Department for betterment. The lease fixed a rental of £66 a year right through the term, and there could be no doubt that that was a very favourable ground rent.

Counsel submitted that what the Court would have to determine was the capital value of the lar.d, the capital value of the building, and the appropriate rate of interest. If they had the money now to invest they could not get near 5 per cent »for it and probably would be lucky if they got 3 per cent. He suggested that 4 per cent would be a fair rate to allow.

John Hewlings. Jackson, valuer of over 30 years' experience, said that the sites in question were more or less ideal for shipping companies or for a bonded store. He described recent improvements made in the locality. Duthie Bridson's section fronting on Customs Street had been taken at a valuation of £325 a foot, and that gave some indication of values. He valued the land in question at £2OO a foot, and the building at £7555, making a total value of £14,155. Value of Quay Street Land In cross-examination, witness said he considered that Quay Street land was worth at least twice as much as sections on the old railway station area. In 1926, which was about/the p£ak, he considered the value of the sections to be £250 a foot.

Thomas Buddie Arthur, valuer of between 30 and 40 years' experience in Auckland, said he valued the land at £2OO a foot. Generally he corroborated the previous witness' evidence as to the suitability of the building for the particular locality. Henry Beaumont Burnett, secretary to the Auckland Harbour Board, said the average return on the board's mortgage investments was 4J per cent. Over all its investments it was probably not more than 4 per cent. It was possible that a loan would be raised in the next financial year, although that had not been decided. Judging from present rates, they should not have to pay more than 3J per cent. Tho board's present policy was to extend its main wharves eastward. To Mr. Meredith, witness said ho spoke as an officer of a public body which had to act conservatively in its money dealings." He would 'not expect a private business man to look forward to a return of only 43 per cent on his investment.

Norman Wade, architect, said the replacement cost of a building such as Spedding's Building, if half the cost of the dividing wall were paid, would he £8549. He estimated the present value of the building at £7549. His Honor said he intended to inspect the properties concerned, and the hearing was adjourned until to-day. >