1st Class Baggage buys leasehold interest

By Chris Hutching

Friday 3rd September 2004

An Australian company, 1st Class Baggage, has contracted to buy the leasehold interest in a 2.8ha site at 61-67 Cook St, Auckland for $30 million from City West and Sandela Holdings, companies respectively associated with developer Jamie Peters of Starline Holdings and businessman Rod Petricevic.

Last week the National Business Review reported how the Lamborghini-driving Peters was battling to quell speculation he was in financial difficulties with Inland Revenue after it was revealed some of his companies were subject to winding up orders in the Auckland High Court (adjourned).

But the sale of the leasehold interest in Cook St appears unrelated to the difficulties besetting other parts of Peters' property empire.

City West and Sandela Holdings are understood to have bought the properties earlier this year for $28.5 million with an eye on development opportunities.

The sale of the leasehold interest for $30 million probably reflects the anticipated increase in value from the redevelopment opportunities.

The leasehold concept has gained ground in recent years, particularly in Auckland following the success of developments around the Viaduct Harbour area, and some of the same developers are now applying it to industrial and commercial projects.

The Starline website shows an aerial photograph of the site and says a master plan for long-term redevelopment has been prepared.

It is unclear whether the deal means Starline will continue to develop or whether 1st Class Baggage will take a role.

Talks are continuing with Auckland City Council about development plans.

However, according to the Overseas Investment Commission, the directors of 1st Class Baggage, Duncan Bull and Douglas Rikard-Bell, plan to undertake the development over five or six years and create approximately 4000sq m of retail space, 5000sq m of commercial space, a boutique hotel, about 1000 residential apartments and 2000 car parks.

Some of the land will be developed as an artistic and cultural precinct, including open communal gathering space.

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