SINGAPOREAN investors are flocking to New Zealand in droves to take advantage of the country's burgeoning economy and favourable property market.
Grand Central (NZ) Ltd - a wholly owned subsidiary of the city-state's publicly listed Grand Central Hotel Ltd - has been especially active and has recently completed several multi-million-dollar property deals.
Earlier this month, the company bought Wellington's Plimmer City Centre, located in the heart of the capital, for about $60 million and the Dominion Breweries (DB) Tower in Auckland for about $28.5 million.
Grand Central, which already owns two other large commercial buildings in Wellington, will spend up to $32 million on maintaining and improving the Plimmer City Centre, to increase patronage and leasing arrangements.
The Plimmer City Centre was owned by the Smart Group Ltd. It suffered huge losses in the wake of the 1987 stock market crash, which resulted in a virtual total collapse of New Zealand's commercial property market.
The sale to Grand Central will help Smart Group pay off large debts owed to banks and other financial institutions.
Quality Hotels, which has Singapore-based City Developments Ltd as a shareholder, has the Plimmer City Centre lease until 2008.