Close to $37 million worth of commercial property has sold from Bayleys’ latest round of Total Property auctions around New Zealand.
A total of 23 properties were sold at auctions in Whangarei, Auckland, Tauranga, Rotorua, Wellington and Christchurch.
In one of the highest priced under-the-hammer sales of the year, a large commercial site on the fringe of Tauranga's CBD (pictured above) was sold for $6.25 million by Lloyd Davidson of Bayleys’ Tauranga office.
Located at 199, 207 & 213 Cameron Rd, Tauranga, the 2192 sq m City Centre zoned freehold redevelopment site in three titles sold at a land value of $2851 per sq m and at a 3.05% yield on its two tenancies. It is fully leased to a car dealership and a dive training and retail business which have leases running until August 2020
Located next to Tauranga’s central fire station, it is on one of the main arterial routes into and out of the city centre.
“Car dealerships have been operating from parts of the site since the early 1970s, not surprisingly given its huge frontage to such a busy arterial road, “ says Davidson. “But this is unlikely to be the case for much longer with increasing land values resulting in more intensive mixed use development around the CBD.
“The property is currently under developed in terms of both of its utilisation and return, with its City Centre zoning allowing for a wider range of commercial and or residential uses up to a height of 19m.”
Bayleys Tauranga commercial sales manager Mark Walton said about 70 to 80 people, including key developers, attended the auction which saw all three Tauranga commercial properties that were auctioned selling under the hammer. "That demonstrates a strong interest in commercial property and development sites in rapidly growing Tauranga.”
Further north, one of Whangarei’s largest commercial auction transactions was also concluded with the sale of the Otaika Shopping Centre in Raumanga for $3.8 million.
The well-known property located on a 2799 sq m site on SH1 at southern entranceway to the city was sold at a 6.84% yield by Bayleys Whangarei agents John Haselden and Neil Campbell. The 1270m² fully leased convenience retail complex with 60 parking spaces was built in the 1960s and expanded in the 1970s. It has eight tenancies, with five 10-year leases running until 2027-2028.
In Auckland, the highest price fetched was $3.93 million for a 756 sq m corner store in the Lincoln North Shopping Centre at 192 Universal Drive, Henderson.
The store, which underwent a major renovation earlier this year, was sold at a 5.73% yield on its current lease to Super Cheap Auto NZ until July 2023 with annual fixed three per cent rental increases. The deal was brokered by Matt Lee, James Chan and Quinn Ngo of Bayleys Auckland international division in conjunction with Terry Kim and David Han, Bayleys North Shore
Two properties in Pt Chevalier’s town centre were also sold at the Auckland auction. An underutilised 696 sq m site with redevelopment potential zoned Business-Neighbourhood Centre at 350 Point Chevalier Rd sold with vacant possession for $1.87 million at a land value $2,686per sq m through John Procter and Alan Elliott. It previously housed a greengrocer’s store on its road frontage for over 50 years.
A long standing fruit and vegetable shop of 345 sq m in a retail complex with plenty of onsite car parks at 1110 Great North Rd sold for $1.55 million. Leased to PTC Fresh NZ for five years from December 2016, with two five-year rights of renewal, it sold for $1.55 million at a 6.99% yield through Nicolas Ching, Quinn Ngo and James Chan of Bayleys’ international division.
Attracting the strongest bidding competition in Auckland was a small unit opposite the anchor Tai Ping supermarket tenancy in the Rosedale Retail Centre which sold for $890,000 at a 4.22% yield through Eddie Zhong, Steven Liu and Meng He, Bayleys North Shore Commercial.
The auction of the 73 sq m shop, with just under 13 months to run on its lease to a health supplements and souvenir retailer, was brought forward a week after the vendor accepted a pre-auction offer of $750,000 which became the declared reserve. Strong bidding from six parties then pushed the final sale price up a further $140,000 before the hammer finally came down.
Elsewhere in the country, both properties put up for auction in Rotorua sold, all three Wellington industrial offerings went under the hammer and six out of seven properties in an industrial development in Sockburn, Chrsitchurch also sold individually at a total value of $6.355 million. https://www.bayleys.co.nz/news/commercial/strong-response-to-christchurch-portfolio-auction
Other properties to sell in the North Island included:
Unit 7, 162 -178 Wairau Road, Wairau Valley: A 45 sq m unit at the rear of Wairau Junction retail complex sold for $550,000 at a 5.56% yield through Andrew Lin, Bayleys South Auckland and Ranjan Unka, Bayleys North Shore. It has a four-year lease to Persia Kebabs from July 2017.
Unit D, 18 Ashfield Road, Wairau Valley: An industrial unit comprising a 110 sq m ground floor and 30 sq m storage/mezzanine area, with a month-by-month tenancy, sold for $440,000 at $4000 per sq m through Trevor Duffin, James Yu and Matt Mimmack, Bayleys North Shore.
A206/44 Courthouse Lane, Auckland CBD: A 45 sq m unit in Chancery Square leased to a property management company sold for $380,000 at an 8.82% yield through Mike Adams and Jean-Paul Smit, Bayleys Auckland
272A State Highway 2, Bethlehem, Tauranga: A 305 sq m two-level commercial building on an 809 sq m site with a high profile SH2 frontage sold for $1.26 million at a 4.98% yield through Myles Addington, Bayleys Tauranga. A pharmacy is the anchor ground floor tenancy with a smaller dental tenancy above, both on renewed leases until 2021.
66 Koromiko St, Judea, Tauranga: A 1519 sq m standalone warehouse/workshop building on a 2,536 sq m industrial site sold for $1.8 million at a 6.78% yield through Graeme Coleman, Bayleys Tauranga. Paramount Stainless has recently renewed its lease for three years.
40-42 White St, Fenton Park, Rotorua: a 746 sq m 1980s’ industrial building on a 1370 sq m site sold for $865,000 at a 6.32% yield through Mark Slade and Brei Gudsell, Bayleys Rotorua. It has three leases, with an anchor auto tenancy on a new five-year term.
192 Stokes Valley Road, Lower Hutt: 320m² of retail space on 322m2 Suburban Commercial zoned corner site sold for $280,000 at a 5.6% yield on current rental (13.9% on estimated potential rent). Currently configured as four shops, two with longstanding tenants, two vacant. (Paul Cudby, Andrew Smith, Bayleys Wellington)
12 Sydney Street, Petone: 300m² of predominantly warehouse/workshop accommodation on 455m2 site zoned Petone Commercial 2, plus 8 car parks, sold vacant for $760,000 at land and building rate of $2,533/m². (Richard Faisandier, Bayleys Wellington)
75 Sydney Street, Petone: 369m² modern tilt-slab warehouse, constructed in 2000 with seismic assessment of 70% of NBS on 498m2 site with 10 parking spaces, sold vacant for $900,000 at a land and building rate of $2,439/m². (Fraser Press, Paul Cudby, Bayleys Wellington)