OAMARU PROPERTY

Otago Daily Times, Issue 26229, 13 August 1946, Page 6

OAMARU PROPERTY

REDUCTION IN PRICE LAND SALES COURT APPEAL An appeal against the decision of the Ogtao Land Sales Committee in reducing the price of an Oamaru property from £1750 to £1550 was heard by the Land Sales Court yesterday. Mr Justice Archer presided, and associated with him were Messrs W. Stewart and E. Scott. The appeal was in respect to section 5, block 23, town of Oamaru, the vendor being Isabella McFarland Grave and the purchaser the New Zealand Loan and Mercantile Agency Company, Ltd. Mr S. I. Fitch appeared for the applicant, and Mr J. R. Hampton represented the Crown. The court, after hearing evidence, reserved its decision. Case for the Applicant Mr Fitch explained that the property was situated 1 at the corner of Thames and Ribble streets, in Oamaru, and was in the main business area of the town. The company at present leased premises in the Municipal Chambers, but had found these altogether too small. The Ribble street property was a highly desirable one from the point of view of the company, and was a full quarter of an acre. The buildings were on borough leasehold property, the rental being £3B per annum. Counsel added that he had the authority of the company to say that it would erect a modern office building on the site when a permit was available. From the company’s point of view the buildings on the property had a demolition value only. The site was the only one available in the business area of the borough suitable for the erection of a modern building. At £1750, the price which the company was willing to pay for the property, a return of 8 per cent, was shown. He contended that the land and premises were worth from £ 1300 to £ 1400, while the goodwill in the land would amount to another £SOO. Evidence concerning the value of the property was given by J. C. Kirkness, the Mayor of Oamaru, and J. C. Stevenson, auctioneer and real estate agent. Mr Stevenson added that to replace the stonework in the building would cost £9OO and an additional £l2O would be required for foundations. He considered the building to be worth £1350, and placed a value of £2500 on the property. Evidence was also given concerning the building by T. R. Beatty, building contractor, Oamaru. Crown Valuation For the Crown, evidence was given by D. H. Croll. a valuer employed by the Valuation Department. Witness said he had depreciated the value of the stone building by 65 per cent., and he considered it to be worth £IOOO. Witness had placed a site value of £l4O only on the wooden building. He had made an allowance for the corner site. To his Honor witness expressed the opinion that the buildings were too old to be modernised. Evidence was also given by J. C. Falkinder, property supervisor in the State Advances Corporation, and G. P. Booth, builder and contractor. Mr Fitch suggested that in view of the special circumstances the court should grant the application without fixing the basic value. Mr Hampton said the Crown would certainly object to such a proposal. He pointed out that the Servicemen’s Settlement and Land Sales Act covered all properties, and no exception should be made in the present case.