Waikato Business News April/May 2019

More documents

Recommendations

Info

8 WAIKATO BUSINESS NEWS April/May 2019 CONVERSATIONS WITH MIKE NEALE OF NAI HARCOURTS HAMILTON Are we experiencing a market change and what will that mean ? Over the past few weeks we have without doubt seen a change and feel to the market that we have not seen in a long time – property that was deemed a long-term hold is now for sale, vacant buildings that were not available for owner-occupiers are now for sale. Investors are now differentiating between prime investment yields and yields for what they deem to be lesser-quality stock. The residential market has also experienced change over the last month or two – specifically, houses in the $800,000-plus category are more plentiful and yet there are fewer buyers present. Examining the rest of the world and what is taking place in various economies and political spectrums, we should be extremely thankful that we are here in New Zealand. Looking around New Zealand and seeing the growth that is taking place in Hamilton, again we should be thankful that we are here with projects currently under way (commercial, industrial and residential) that will continue over the next 1-3 years irrespective of what happens in the market around us. What do we believe are the ingredients that have caused this ‘softening’ in the market? • Banks’ lending requirements are becoming more stringent and this could be a response to the Reserve Bank’s proposal for banks to increase the amount of capital that they are required to hold. • The steady rise in construction costs and associated development costs (development contributions, compliance costs, council consenting costs) are having an impact on the economic viability of some developments. The recent collapse of Arrow International, Ebert Construction and Fletchers withdrawal from the commercial sector is symptomatic of larger issues. • Many businesses over the last year have been positioning themselves to be more efficient and looking to lower their risk levels. • Recent Government recognition of concerns in the construction sector. Property has been a great ride and that will continue, as only in the Netherlands are they making more land! What does this mean for vendors? • Be strategic in your investment decisions and consider divesting assets that will have more challenges in a softening market. For example, those being vacant properties or properties with issues will be more difficult to lease if they do become vacant. Be objective in your assessment (or seek the advice of a real estate professional rather than a friend) of the properties that you own now, as they will likely still attract a significant premium in comparison to what they were worth at the start of this cycle in 2011/2012. Mike Neale - Managing Director, NAI Harcourts Hamilton. What does this mean for purchasers? • Being cashed up puts you in a prime position to take advantage in a softening market, where more opportunities are likely to arise and there will be less competition. • Look to purchase properties that have better fundamentals, as opposed to recent years where it has very much been about just putting your money into any bricks and mortar investments that did not have a seismic issue. The good news is that on April 17 the Government categorically rejected a capital gains tax, saying there was no mandate - and no consensus - for a CGT. There is already a capital gains tax through the bright line test and the forward looking view for the Government is that there is neither a compelling rationale nor a mandate to institute a comprehensive capital gains tax regime. The rejection of a CGT will no doubt provide certainty to taxpayers and businesses. Will this change what we are currently seeing? In summary, if you are thinking about selling, then right now may well be the best time to do it – and as a purchaser it’s time to start looking again, as slowly opportunities will surely start to arise. Property has and always will be an excellent investment, but repositioning yourself with better quality properties as you get older (and wiser) and your risk profile changes, is a smart move in our opinion. At NAI Harcourts in Hamilton, we have a philosophy: Every day, it’s about helping our clients and customers with good credible advice to make better informed property and business decisions. With local expertise and global resources, we know what works. Thinking of selling or purchasing? In this environment and market, vendors and purchasers should not be afraid and rather encouraged to buy or sell at auction or through a deadline sales process. Not only does this provide urgency to act, but we believe these are smart and sensible ways to either buy or sell commercial property and are the most transparent market value processes for both buying or selling. The bottom line is, and always will remain, that a vendor wishes to know that the price achieved is the maximum the market will pay, whereas a purchaser wants to go home knowing they have had a fair and equal opportunity to purchase. Little known fact: Hamilton is one of the few cities in the world to have a nearly exact antipodal city – Cordoba in Spain. NAI Harcourts Hamilton Monarch Commercial Ltd MREINZ Licensed Agent REAA 2008 Cnr Victoria & London Streets, HAMILTON 07 850 5252 | hamilton@naiharcourts.co.nz www.naiharcourts.co.nz 2019 graduates: Norm Hill (Boffa Miskel), Andrew Matheson (Matheson Consulting), Amanda Hema (The Stakeholder Agency), Karlene Verryt (DV Bryant) Huge Wakelin, Thomas Campbell (PowerFarming), Lizana Tuake (CORE), Pat Peoples (Schick Civil & Construction), Rachel Karalus (K’aute Pasifika), Shane Keesom (Gallagher), Teresa Bidlake (Hospice), Ross Lamberton (Prolife Foods), Kylie Leonard (NZ Dairy Women’s Network), Mike Ryan (UltraFast Fibre), Chris Horan (BNZ), John Cook (CELF-Chair), Nathan Collins (Habitat For Humanity), Neil Quigley (The University of Waikato - Vice-Chancellor), Tania Witheford (CELF), Rick Thorpe (Xtremezerowaste). Leading the way for community engagement A leadership programme that has commitment to community as “part of its DNA” has produced its latest cohort of graduates, bringing the total to 79 over four years. By RICHARD WALKER A leadership programme that has commitment to community as “part of its DNA” has produced its latest cohort of graduates, bringing the total to 79 over four years. The Elevate programme sees Waikato businesses paying for a place on the course for a leader from their own organisation as well as a place for a community organisation member. That sees both profit and not-for-profit leaders benefiting together from the course, which is run by Community and Enterprise Leadership Foundation (CELF) in partnership with University of Waikato Management School. “The powerful factor in all of this is having those two groups of people come together and learn off each other and with each other, about themselves, their organisations and their community,” CELF director Tania Witheford says. “[What] we are seeing for those businesses that are part of CELF is the undertaking that their commitment to community is part of their DNA.” For the community organisations, meanwhile, the course offers an opportunity that they would struggle to fund themselves. “Their passion drives them, but unfortunately they don’t have the funding for that professional development. So that’s where the CELF proposition opens up that doorway.” The investment of $25K secures two places on the programme with potentially huge benefit for both the business and the community. “Our funding model is unique, I haven’t come across anything like it. I think that is very important because it demonstrates from a business perspective how they value leadership and the fact they can identify that community is an important part of their success and their future success,” Witheford says. The group of 18 in the Elevate Leadership Class for 2019 graduated in April at the Gallagher Academy of Performing Arts. The evening saw a moving tribute to CELF co-founder Bernie Crosby from fellow founder David Irving, as Crosby, who recently retired as a trustee, was made a patron of the organisation. Crosby was a co-founder of Prolife Foods and Irving had founded Icehouse and was a former Heinz-Watties boss. The two friends had identified that Waikato could benefit from increased leadership capability, and the breakthrough moment came when they identified the co-funding model. The graduation also included a heartfelt speech from 2018 graduate Kingsley Fink, Tristram Marine general manager, about how the course has changed his life and its positive impact on his company. Graduates of the 2019 course Nathan Collins (Habitat for Humanity) and Chris Horan (BNZ) also spoke, and acknowledged the businesses who willingly opened their doors and the leaders of those businesses who candidly shared their leadership experiences, successes and failures with the class. Over the four years Elevate has been running, relationships formed during the course have endured, with cohorts continuing to meet regularly. Witheford, who started in her role last year after several years as chief executive of Cambridge Chamber of Commerce, wants to also build cross-cohort engagement now that the total number has reached 79. The course starts with self-evaluation and a residential programme to build connections with others on the course. That is followed by monthly visits to businesses and CEOs. Topics for the 2019 cohort included change management and a section on design and innovation, says Witheford, who as well as being director was a participant on the course. Each business visit is followed by a day of workshop or classroom learning, with the practical and theory sides feeding into each other. “All the way along we were encouraged to use each other as mentors, create that relationship to be able to continue the learning from each other.” In some cases, she says, participants were able to make changes in their organisation while still on the course. “One of them went back and took the learnings from their first three or four sessions, about engaging their team and ensuring they had voice, to create an entire strategic plan that took into consideration revisiting their vision. It was massively impressive,” she says. She also refers to Rangimahora Reddy, whose community organisation, Rauawaawa Kaumatua Charitable Trust, has benefited hugely from the $12,500 investment that her place on the 2018 course cost. The trust was fund-raising for a building renewal project, and Rangimahora was able to build on her CELF experience and cohort contacts to undertake crowd-funding that produced $100,000 towards the project. “For me, personally, successful business environments always help foster a strong, vibrant community,” Witheford says. • CELF is taking applications for its next course, which starts in August. Applicants from both profit and notfor-profit sectors can apply using the CELF website, and acceptance is based on an interview process. Bernie Crosby speaks at the graduation event, watched by David Irving and Tania Witheford.
Experience care as it should be, experience the Braemar way. Braemar Hospital is one of the largest private surgical hospitals in New Zealand, and it’s here in Hamilton. With more than 100 world class specialists, 10 state-of-the-art operating rooms, 84 beds including 32 private rooms, at Braemar you’ll receive the highest level of care. Choose the very best. Choose Braemar. WAIKATO BUSINESS NEWS April/May 2019 Software specialist finalist for Hi-Tech Award A Waikato technologist who, with his business partner, established a Silicon Valley level company in the region, is a finalist in the New Zealand Hi-Tech Awards. David Hallett and Jeremy Hughes founded software specialist Company-X in Hamilton in 2012. David was named a finalist in the IBM Most Inspiring Individual Award at an entrants’ event in Auckland on March 27. Up there: Company-X director David Hallett, top, with co-director Jeremy Hughes. “I’m really very excited to be named a finalist in the Inspiring Individual category of the Hi-Tech Awards,” Hallett said. “I'm in very great company.” The other finalists in the category are Rocket Lab chief executive and technology officer Peter Beck, Xero managing director Craig Hudson, OptimalBI managing director Victoria MacLennan, Spark managing director Simon Moutter, and ADInstruments product manager Sam Payton. “It is really cool to see David from Company-X up there with such inspiring business leaders such as Peter from Rocket Lab, Simon from Spark and Craig from Xero,” said Hughes. Hallett and Hughes have grown the team to about 50. Company-X ranked on the Deloitte Technology Fast 500 in the last two consecutive years and was named the fastest growing technology company in the Central North Island in the Deloitte Fast 50. Hallett was nominated for the Most Inspiring Individual Award by his business partner, professional services manager Michael Hamid and communications manager Chris Gardner with the support of the Company-X team. Nominations also came from the wider Waikato business community. “David inspires because he’s a strategic thinker with great practical skills,” the Company-X nomination said. “He has great client relationship skills backed with excellent broad technical knowledge. This leads to pragmatic client engagement upfront... He has an infectious enthusiasm for everything he does, evident in House swap the new way to find new home A revolutionary platform that empowers Kiwis to swap, not sell, to find their dream home has launched, offering a new opportunity for New Zealanders to save thousands of dollars on their most significant life purchase. Hermitty is a web-based platform that assists New Zealanders to swap homes with other likeminded homeowners. For a fraction of the cost of the traditional sale process, clients can now list their home for free on the Hermitty website and take control of the marketing process. Much like a dating app, homeowners will have the ability to search through and show interest in other homes simply by ‘liking’ them. Once the homes have been mutually ‘liked’ by the homeowners, a one-off fee of $98 plus GST is paid in order to start a conversation. The fee allows the visitor to message as many other homeowners as they like, and market their own home. Who knows their own home better than the owner? This represents a massive saving. The commission fee on a home valued at the national median house price of $550,000 is between $17,000 and $25,000. Hermitty was co-founded by Chris Mackenzie and Nic Foote. “Having previously switched my own home when it was up for sale, I found it was the easiest sale and purchase of a home I had ever done,” says Mackenzie. “Nic and I both realised that this happens a lot and that there are a multitude of reasons where it makes sense for New Zealanders to switch homes. This could include a shift in region, wanting to secure more desirable school zones or a change in circumstances that necessitates a downsize or upsize. “We wanted to create a community that would facilitate bringing New Zealanders who are looking for a new home together, with a focus on swapping not selling. Our platform empowers the home owner to change house easily, saving stress and expense in the process,” says Foote. Hermitty is offering unlimited free chat with other listings to the first 100 people who list their home on the site. Visit Hermitty, including terms and conditions, on www.hermitty.co.nz. the business and on the many boards he serves and chairs.” Hallett has an extensive, international, list of contacts. “David is a great leader with exceptional people skills, treating everyone with kindness and respect regardless of their role.” Hallett is co-founder of Cultivate IT nurturing the Waikato region as a technology powerhouse, chair of the Institute of IT Professionals Hamilton branch, ICT sector lead on Waikato Regional Labour Market Strategy Group, chair of the Bachelor of Information Technology Advisory Group of the Open Polytechnic of New Zealand, chair of the Good Collec- tive helping the Waikato’s charitable and not for profit sectors, adviser for Wintec’s Centre for Business, IT and Enterprise, and a founder of the Innes48 Business Startup Competition, now the NZ Startup Bootcamp. Hallett operates by Company-X’s founding values. They are to do what you said you would do, make the customer look good and always offer options because the customer has the right to make informed choices. Hi-Tech Trust chair Jen Rutherford says the standard of entries is the highest in the 25-year history of the awards. “This year’s finalists span braemarhospital.co.nz 9 the full spectrum of the hi-tech sector and the country. For 2019 we have made been very conscious on building on the foundations of last year to ensure even greater diversity across our judging panels and among the entrants and finalists. It’s awesome to see so many areas of the country represented among the finalists with so many ethnic backgrounds and great female-led companies coming through. Our industry is truly in great shape,” said Rutherford. The winners of the 2019 Hi-Tech Awards will be announced at Spark Arena, Auckland, on May 24. Waikato Branch – Upcoming events/courses At the Institute of Directors we’re on the pulse of governance. Connecting, equipping and inspiring directors through thought leadership and our extensive network, professional governance courses, events and resources. 7 May 2019 ‘Theatre of Dreams’ Speaker: Dame Trelise Cooper Time: 12.00pm – 2.00pm, FMG Stadium Waikato 16 May 2019 ‘How to simplify your Board Meetings with BoardPro’ Speaker: Brett Herkt, Co-founder and CEO of BoardPro Time: 4.00pm – 6.00pm, FMG Stadium Waikato CPD: 2 points CPD: 2 points To register, please contact: Megan Beveridge, Branch Manager Waikato.branch@iod.org.nz, 021 358772 or www.iod.org.nz 21 May 2019 ‘Finding your voice, brand and enabling women around the table’ Panel: Jo Finer, Verity Johnson and Alison Shanks Time: 12.00pm – 2.00pm, FMG Stadium Waikato CPD: 2 points Waikato branch is kindly sponsored by: J1121P
Page 1 and 2: APRIL/MAY VOLUME 27: ISSUE 4 2019 W
Page 3 and 4: WAIKATO BUSINESS NEWS April/May 201
Page 7: WAIKATO BUSINESS NEWS April/May 201
Page 13 and 14: Winning team: From left, Raewyn McP
Page 17 and 18: CAMBRIDGE WAIKATO BUSINESS NEWS Apr
Page 21 and 22: The earth conscious hotel opening d
Page 25 and 26: Small business owner gets a lucky b
Page 29 and 30: BLACK & ORANGE - PARKHAVEN WAIKATO
Page 31 and 32: BLACK & ORANGE - PARKHAVEN WAIKATO
Page 35 and 36: HANSA CHIPPERS WAIKATO BUSINESS NEW
Page 37 and 38: HANSA CHIPPERS WAIKATO BUSINESS NEW
Page 39 and 40: KINGSBEER CONSTRUCTION - BURNSCO WA
Page 41 and 42: Rodney Stirling Rodney Stirling KIN
Page 43 and 44: very tough economic conditions for
Page 45 and 46: FROM THE GROUND UP WAIKATO BUSINESS
Page 47 and 48: Did you hear the one about… Humou
Page 51 and 52: Relocating companies find solution
Page 53 and 54: CHILD FOCUS WAIKATO BUSINESS NEWS A

Waikato Business News April/May 2019

Create successful ePaper yourself

Delete template?

Save as template?