In this episode, Kevin sits down with Hoa Quan, Wellington Manager of Quotable Value.  If you’ve ever wondered how rateable values are calculated, why there can be large variances between market values and rateable values? This interview with Hoa Quan, the Wellington Manager of the valuation team at Quotable Value Ltd, is a must-listen.

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Post-Waltus Investments and Strategies

After leaving Waltus, Shayne discusses his personal investment strategies, including acquiring properties with short lease terms and adding value through lease negotiations, subdivisions, and redevelopment. He shares examples of properties he has purchased and sold, such as the Granada North industrial property, the Port Domain industrial park in Seaview, a Thorndon Quay mixed-use building, the former NZ Post mail distribution center in Petone (converted into a Bunnings store), and the PrintLink property in Petone.

Investments in Auckland Industrial Properties

Shayne explains his recent investments in industrial properties in Auckland, citing higher yields and growth potential compared to Wellington. He emphasizes the importance of acquiring properties with good underlying land value and functional buildings that can be redeveloped over time. Shayne discusses the factors contributing to Auckland's industrial market dynamics, such as land constraints and the demand from third-party logistics providers.

Mentors and Lessons Learned

Throughout the interview, Shayne credits his father, John Hodge, and businessman Bob Jones as significant mentors who shaped his business philosophy and approach. He shares valuable lessons learned, such as understanding the 'WIFM' (What's In It For Me) principle, maintaining a balance between business and family, and the power of visualization and focus in achieving success. Shayne also discusses the importance of finding successful mentors in one's field and emulating their practices.

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Shayne's Early Career in Residential Real Estate 

Shayne discusses how he initially got involved in residential real estate sales in Perth, Australia.  He started door-knocking and offering free appraisals, eventually securing his first listing. He then transitioned into commercial real estate with his family's background, joining a small Italian real estate agency called Conti Sheffield, where he handled leasing, sales, and general transactions. 

Joining the Family Business: Waltus 

Shayne explains how his father, John Hodge, co-founded Waltus in 1986 with his uncle and others, syndicating Sydney industrial properties to New Zealand investors. Shayne saw an opportunity to join and expand the business, which had a small client base at the time. He discusses Waltus' first purchase in New Zealand, a Woolworths supermarket in Taupō, and their strategy of lowering the minimum investment to $5,000 to attract a wider audience. 

Waltus' Growth and Eventual Sale 

Shayne describes Waltus' growth, reaching $750-$800 million in funds under management. However, the syndication model became flawed due to liquidity issues and the need for property refurbishments. Waltus merged its syndicates into a company called Urbus, which was eventually listed on the NZX. Shayne details the process of selling Waltus' management contract to ING (now Argosy) after an initial failed attempt, resulting in a higher sale price. 

You're listening to an interview by Kevin Dee