Waikato Business News January/February 2020

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8 WAIKATO BUSINESS NEWS January/February 2020 CONVERSATIONS WITH MIKE NEALE OF NAI HARCOURTS HAMILTON What Did Early January Indicate For The Rest Of 2020? When the office opened again officially on Monday, 13th January there was some debate as to what market conditions were going to be like and should we be opening later. With an election year looming (and the associated political circus), would we see greater decision making or more of the uncertainty that we had faced in 2019? With the banks’ capital requirements now confirmed, further interest rate cuts seeming unlikely and the sky not having fallen in, my first week back indicated that people had made definitive decisions over the Christmas break, probably over the BBQ with a beer or wine or two - to just get on with things, whether it be to lease, sell or buy. My diary, which was pretty standard within the office in terms of activity that week, showed that a wide variety of parties were keen to actively kickstart 2020 – its not uncommon for the industrial and commercial market not to really get into full swing until after Anniversary weekend or even Waitangi. CBD related diary notes: Monday: • Inspection of a large commercial asset by a developer. Post inspection requested all available Due Diligence information be sent to their solicitor. • Inspection of a unit in Casabella Lane by a new prospective tenant, who are currently outside the CBD in another shopping Centre, but looking to move back into the city. Also considering becoming an owner occupier. • Enquiry from a pop-up fashion tenant for a retail premises (new to Hamilton - for 2 months). • Call from a government department looking to now progress their lease options, having undertaken inspections prior to Christmas. Tuesday: • Inspection by a retail tenant of a Victoria Street premises for a new beauty therapy business. • Inspection of a small retail premises below VR Hotel for a new hospitality operation. • Inspection by an owner occupier of a significant development property for an alternative use. • Call from a retail tenant that had viewed a Bryce Street premises prior to Christmas, wanting to proceed with a lease offer. Wednesday: • Government agency called wanting to view several office options, with an immediate requirement. • Call from another real estate company for a meeting regarding a joint sale of a commercial property that has recently had refurbishment work completed. • Second inspection of the retail tenancy on Victoria Street for a new beauty therapy business. Post inspection asked to draw up a lease offer at the asking rental. • Call from a retail owner occupier looking for purchase options of 50sqm or less. Thursday: • Franchisor to Hamilton to view and assess a proposed new retail operation of 450sqm. Lease negotiations then proceeded. • Inspection by an owner occupier of a Mike Neale - Managing Director, NAI Harcourts Hamilton. large development asset (seismic issues, refurbishment required etc). Subsequent to the inspection they are looking to get a number of consultants back through, for due diligence purposes. Friday: • Enquiry from an established professional services company of an office premises on Tristram Street. • Enquiry from an office tenant for a 4 month lease (project space of around 400sqm). • Email from a tenant wanting to view a particular relocation option. • Enquiry from a professional services company looking to set up a small operation in Hamilton. Luck is what happens when preparation meets opportunity.” - Seneca This amount of enquiry so early in January was surprising, yet reinforced our belief that the momentum Hamilton has experienced in recent years, really is now snowballing across the commercial, industrial and residential markets. There appears to be a new fear – the fear of missing out. So, with historic low interest rates for at least the medium term, coupled with strong population and business growth, 2020 appears to be a year where we could outperform the rest of New Zealand on many fronts. You may need to cancel some tee times and your golf handicap may suffer, but the prospects appear generally positive. There remain opportunities for those with vision and a desire to be part of the Hamilton Story. So, get out there, make things happen and get it done! Little known fact: Ice cream consumption: Per capita consumption of ice cream and related products is estimated to be 22-23 litres per annum. New Zealanders are amongst the biggest consumers of ice cream in the world - most recent figures put us at the very top, just ahead of Australia and the USA. 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 203662AB Inventive next chapters in brewer’s good story By RICHARD RENNIE With an international award and some new brews in the chiller for summer, Good George co-founder Darrel Hadley is feeling positive about the prospects for the Frankton-based company. The brewery claimed an esteemed award in 2018 at the Octfest Beer Fest in New York with its specially brewed Kiwi sour beer, containing New Zealand kiwifruit in a German style sour beer. “Given that it was a publicly awarded beer, judged by 6000 people who know their beer, and it was out of 90 breweries present, it was quite an achievement for us,” says Hadley. While Good George is working on some export possibilities, the logistical challenges of exporting and delivering a quality unpasteurised beer unspoilt to overseas markets can be a tough one, and Hadley still sees plenty of potential here at home. In early December, Good George launched a quirky sour beer “Smashed Blueberry” in time for summer, and a market more receptive than ever to new beer styles and flavours. “The sour beer phenomenon is something that in the United States followed on from the IPA craze. It has not caught on yet in New Zealand, but we are looking to be the ones who help pioneer it, and the blueberry beer is at the front of that.” Combining the company’s brewing skills with locally grown blueberries from Matangi grower Dan Peach has provided a valuable provenance link to the new beer, something Hadley says more and more consumers are seeking in their food and beverage experiences. “We have done other collaborations with the likes of Zealong Tea and local coffee makers. People are looking for nice stories with their experiences.” He acknowledges as it has matured the craft market is a tough business, with growth nearer 10 percent a year than the earlier 30 percent, in a small country that now claims almost 200 breweries. “It is not easy competing with the big breweries for taps in establishments. It was easier in the early days to pick up a tap here and there. But understandably local outlets want to support their local brewers. Having our own outlets means we are fortunate to have a blank canvas for promoting our beers, and introducing customers to new ones.” The company now has 11 food and beverage outlets, including two in Auckland. Its North Wharf outlet near Auckland’s trendy Wynyard Quarter is trading well only a few Waikato blueberry grower Dan Peach, left, and Good George brewer Brian Watson. Darrel Hadley weeks into its opening. Hadley says management are constantly on the lookout for other flagship locations, which play a big part in building customer loyalty and helping them make a purchase choice when faced with the “wall of beer” in the local supermarket. “Having enjoyed our product in one of our outlets, that gives them a point of reference when buying in the retail environment.” With the company’s founders all having a strong hospitality background, including Hadley’s 13 years with Phoenix Hospitality, there is an equally strong focus on food as the liquid product in all Good George venues. “People’s habits have changed and food is a big part of any hospitality experience and all our menus have at least a 50 percent food component to them.” In the coming year the company is also launching into the spirits market, leveraging off its brewing and distillery skills to produce a Good George Gin. Hadley is clearly excited about the extension beyond beer, seeing gin as a spirit enjoying something of a renaissance. “We are seeing a shift in health-conscious consumers who see spirits like gin as a refreshing drink, low in sugars and carbs. It is a massive trend in the United States at present.” He sees gin falling into that sweet spot and describes Good George’s as a “forward, citrusy” blend or aromatics enjoying a positive reception from customers sampling the first version of it at the company’s outlets. Additional beer types and the gin all bring added pressure to the brewery’s Frankton premises and capacity. But Hadley says the company enjoys its position in the heart of Waikato, and believes customers appreciate having their own local brewery punching above its weight in Hamilton. “It think it reflects how much Hamilton has grown up in recent years. “Meantime for us the challenge is to keep new products coming out, like the Blueberry beer and the gin and our ciders, generating interest and giving people a reason to buy our product. “The days of sitting back and just brewing an IPA just don’t cut it anymore.”
WAIKATO BUSINESS NEWS January/February 2020 9 Fosters awarded contract for Waikato Innovation Park expansion Prominent Hamilton firm Foster Construction has been awarded the contract for the Waikato Innovation Park expansion, with the local community set to reap the benefits. Waikato Innovation Park received resource consent in November to extend its size by more than 30 percent. Fosters was one of three firms that tendered for the project, which will add 2900sq m to the business hub. This building is the sixth of 16 planned for the site. Waikato Innovation Park CEO Stuart Gordon says Fosters’ reputation for quality, capability and environmentally sound construction practices was a key driver behind the final decision. “Fosters put forward a highly competitive tender and we are confident they can deliver a quality build on time and within budget,” he said. “The fact that Fosters are Waikato-based was also a contributing factor to our decision. Being able to connect with the Fosters management team on the ground in Hamilton will help ensure the project runs smoothly from start to finish. “And because they’re local, we take heart in knowing the returns from this project will go back into the Waikato community.” Foster Construction CEO Leonard Gardner says the company is grateful to be selected as the main contractor to work with Waikato Innovation Park on its next phase of development to provide more office space to grow Hamilton’s technology sector. “The project will have benefits for the Waikato community by providing a hub where business can thrive and connections will forge,” he said. Fosters follows the more traditional construction model of employing its own construction labour workforce, and invests in apprentices. Along with predominantly local subtrades and suppliers, Gardner said there is likely to be around 60-80 people on site at Waikato Innovation Park at any one time during the project construction. “At Fosters, our target for any project is for eighty percent of our construction spend to be local. This helps grow, develop and strengthen the benefiting community’s local supply chain. “Sustainability is a key focus of the tech sector, as it is with construction. Fosters is proud to be certified EnviroMark Diamond level, the highest level, showing construction practices that reduce landfill waste, minimise environmental harm and make sustainable decisions that will have a long-term positive impact.” Construction of the expansion project started in January, and the new building is expected to be fully operational during the first quarter of 2021. 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. braemarhospital.co.nz 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. An economic update and outlook for 2020 with Mark Lister 11 February, 12.00pm - 2.00pm, Jet Park Hotel, Hamilton Airport What does the reserve bank’s monetary policy mean for you? 25 February, 12.00pm – 2.00pm, Claudelands Arena Event in partnership with the Waikato Chamber of Commerce. Waikato’s own toy story and AGM 11 March, 12.00pm – 2.00pm, FMG Stadium, Waikato Speaker: Harry Mowbray To register, please contact Megan Beveridge Branch Manager Waikato.branch@iod.org.nz 021 358772 www.iod.org.nz Waikato branch is kindly sponsored by: J1121P
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