Commercial Real Estate

More curious property management practices in Wellington

With the news yesterday of the arrest and charging of two mates from a group of six good friends associated with interesting property arrangements to do with ACC it is with some concern that more information has come to light about the business practices of one of the six.

This story is becoming a poisoned chalice for anyone involved.  I wonder if Malcolm Mason actually declared the $160k and paid tax on this money? Will the IRD now chase the tax (plus penalties on this corrupt dosh) after all income by any means is liable for tax (and GST???) – failure to declare means that the penalties must be quite high – oh dear.

And with the media playing spot the missing name today it wasn’t too long before the tipline was running hot again.

The Bayleys principal in Wellington who is mentioned in the Dominion Post currently has an exclusive RFP in market for 13,000m2 of office space for the Department of Labour.

If you are a property owner and want to participate in the process you have to sign a confidently agreement with Bayleys plus agree to pay a fee of 20% of 1st years rent (norm 14%)

So this blogger asks;

  • Why is DoL sourcing new office space secretly?
  • The Bayleys commission will add $8 -12 pm2 to the cost of the rental over the length of the lease. Why the special commission rate for DoL leasing?
  • Why is government office leasing not publicly notified by each deptment?
  • Is it 20% of the gross or net rent? There is a huge difference! Gross is more favourable to the agent by about 20%

The Property Manager at DoL is John Langman at the National Office Wellington, the word is that he will not deal with any other Real Estate Agency.

Is this another ACC style property rort? And isn’t it curious that it features one of the main players of the nice bunch of six good mates.