eKourier Jan 2013

NZ Teams Perform Like the All Blacks…

Coffee Break with Fizz What a way to finish 2012. National Accounts have ended the year with occupancy of 10,330 sqm. We welcomed Drop Point, Club Assist, Packcentre and our First NZ customer Fairfax to the programme. We’ve also secured a Rental Agreement on the 800 sqm warehouse at Macquarie Park – not a bad first customer! We are starting to see a change from our traditional Pharmaceutical companies to an increase in logistics and technicians, a welcome change to even out our corporate portfolio. We are currently working on a project with Fuji Xerox and Direct Couriers to design a solution that allows couriers to pick and collect spare parts for immediate delivery with live data tracking. New prospects include Nestle, Maverick Marketing and Campari while larger projects include Techtronics and Mars as the challenge for the next six months. We keep receiving great recommendations from Teams that are really helping. Keep them coming! Fiona Harding Business Development Manager With a new year ahead best wishes to all of you and we look forward to an even better 2013. Andrew Kirkham New Zealand Operations Manager been the success of the Enterprise Spaces. While the traditional uses of storage will remain, the larger size unit use is an area of opportunity that is an exciting prospect in these challenging economic times. Our slogan of “ No Lease, No Legals, No Bond ” is a great selling point and a chance to gain some good occupancy and give our sites an unique point of difference in the market place.

I t would be fair to say that most of us Kiwis are very passionate about the All Blacks team (for those who do not know the All Blacks – it is the New Zealand Rugby Team that won the 2011 Rugby World Cup – I cannot remember about the Australian result – anyway let’s move on...). Therefore, it is not surprising that the country seems to perform good or bad depending on how well our National Team performs… As we closed out last year, business momentum started to taper off before bouncing back up. Our Mt Eden site has finally started to gain some rent up in the wine storage market, and the ground floor conversion project has started to show results with higher yield units rented. Three Kings is starting to emerge from its static results with a new Team on board that will no doubt have the centre performing better moving forward. The Tauranga site is operating in a challenging marketplace with an oversupply of operators, but has shown some promising rent up with a drastic dynamic change in pricing and some good income growth. The Hawkes Bay Team are the unit conversion kings! Onekawa have an extensive conversion programme in place especially for the large Enterprise Space sizes, as we tap into this new market. This should help Onekawa emerge from being the minor satellite site of Napier.

Having said that, the Napier site continues to hold occupancy and has shown good income growth recently. We have also converted some vacant space at Hastings into Enterprise Spaces. However, with the site averaging around 85% occupancy and 10%+ income growth, the team remain upbeat. The best performing site so far is Palmerston North, once again using the student market to achieve 90%+ occupancy on top of a successful mature rent up with a good mix of small enterprise business occupancy, while also being the first of the NZ sites to pioneer the Enterprise Space concept with great success. And then there was Wanganui, the smallest site in the company. The Wanganui Team motto takes a simple approach – “ do the basics right and the results will follow ”. With another 20%+ income growth and growing occupancy, a site that 2 years ago had a low occupancy to now becoming a high performing centre is a credit to the Team. So while the All Blacks appeared to start thinking about Christmas early instead of turning up to play the English Team at the end of last year (I am hurting), the All Blacks had some good results but need a better report card next time. I see the same comparison with the NZ sites. All the sites have had some successes but we want to perform better. The one thing that stands out for me has

Kennards Kourier Jan 2013

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