Issue 5 - April 2008

OUTLOOK

Welcome to the fifth edition of OUTLOOK, the e-newsletter designed to keep you up-to-date with news and progress from The Watermark.

Demolition and Construction Update

The demolition contract has been awarded to Quality Demolition Contractors Limited. Preliminary work under the contract began on the 31st of March, and the first big bang happened today - with the knocking down of parts of the external walls. The first phase of demolition will involve extracting and recycling the large volume of historic timber within the building.   

The Watermark Boutique Hotel

The Watermark Boutique Hotel has been released to the market and sales of the 59 freehold hotel apartments are exceeding expectations.  

Levels 1 and 2 have been put on hold for a single purchaser, and a number of apartments on Levels 3 and 4 are also on hold, or have sold.

The Watermark Boutique Hotel offers investors the ability to purchase a 5 star freehold boutique hotel apartment within a defined growth sector, the Wellington domestic and visitor accommodation markets. 

Some key points include:

• Cable Street land value has quadrupled over the last five years, with expectation that this will at least treble over the next decade.
• The apartments are freehold. The Watermark site is the only remaining freehold land available for development in the Wellington waterfront precinct.
• According to the Wellington City Council, future inner city demand for 3,000 dwelling units over the next nine years will considerably exceed anticipated supply.
• International visitor nights in Wellington City are expected to increase to 5.5 million by 2013 - a 29.4% increase on current numbers.*

Purchasing a Watermark Boutique Hotel apartment provides purchasers with an affordable entry point into a commercial investment opportunity. Immediate investor obligations are minimal, utilising a bank bond facility from just $1000** to secure an apartment. Returns are guaranteed at a minimum average rate of 6% p.a until 2014, in accordance with international rates for similar product. 

Boutique Hotel Exhibition Hall Opens

The Watermark Boutique Hotel exhibition hall, located on the ground floor of the Rialto building, opened its doors to the public in late February. Our sales team is now based from here and the site's improved exposure has generated an increased amount of foot traffic coming in to view the show suite.

The Watermark Boutique Hotel apartments have been specifically designed to be luxurious and spacious. The architects' vision was to create "a memorable place to stay in the heart of Wellington City". We invite you to visit the exhibition hall and experience The Watermark Boutique Hotel concept for yourself. Opening hours are: Monday to Friday from 9am - 5pm and weekends by appointment. 

An important part of the Hotel launch process has been the development of our new website, www.thewatermarkhotel.co.nz. With strong interest from offshore investors, everything from floor plans to legal documents are able to be viewed and downloaded from the website, making it an excellent source of information for those who are unable to visit our show suite.

The Wellington Residential Property Market - A Snapshot From Someone In The Know

One of Wellington's leading residential real estate agents, Tommy Heptinstall of Tommy's Real Estate, recently outlined his views on the state of the current property market in New Zealand. His comments on what the Wellington market is currently experiencing are particularly interesting. He encourages those looking at Wellington property investment to see past the negativity and "grinch-like sentiment" currently being portrayed in the media, and to hold on to the confidence needed to take advantage of the good buying opportunites this present market will provide.

Tommy also talks about the latest market release from Quotable Value Ltd in which Wellington's recorded annual growth in property value of 10.6% was the highest in the country. "Data like this confirms my confidence in the Wellington market continuing to be stronger than most other places in New Zealand. At Tommy's we have noticed a slowing in sales activity but feel positive there is still demand for good property... if history repeats itself, the present market will provide some good buying opportunites, and experienced investors will take advantage." 

Source: Tommy Heptinstall, Tommy's Real Estate, March 2008

Residence Focus: G Type

The layout of our G-Type residences has recently undergone a reconfiguration process, with changes enhancing the 'functionality' of their design. A reduction in the size of the terrace area has resulted in an increase in the size of the internal floor area, and space has also been better utilised in both the kitchen and bathroom areas. The replacement of the bath with a double shower, and the addition of another bay in the kitchen are both modifications which have resulted from the customisation process. Other alterations of a more 'cosmetic nature' have also been made to the design; the coffered ceiling which was previously a feature of the entire living area ceiling, is now for example a more subtle inclusion above the timbered feature wall.   

If you would like any further information or have any questions about anything contained in this newsletter, please contact us on: 0800 WATERMARK, or email amanda@thewatermark.co.nz.

*Source: Tourism Wellington, August 2007. 

**this figure is based on a typical deposit bond rate. However, it vary according to the individual apartment's total purchase price, and will also be dependent on the current deposit bond rates offered by the major trading banks.