The sale of two buildings housing retail banks – one on the corner of a busy central Auckland intersection, and the other in a Northland service town – headlined Bayleys’ latest Total Property auctions in Auckland last week.
The ANZ Bank’s branch on the corner of Karangahape Rd and Upper Queen St in central Auckland sold for $4,005,000 after receiving a phenomenal 377 bids over a 40 minute auction. With an annual rental income of $164,958, the sale figure delivered a yield of 4.1 percent.
The ANZ Bank Karangahape Road land and buildings were marketed by Matt Lee, Quinn Ngo and James Chan of Bayleys' Auckland-based international division.
The three-level building was originally home to the National Bank when it was completed in 1992. Following its acquisition of National Bank, ANZ relocated from another location on Karangahape Rd and took over the lease on the property.
ANZ Bank occupies the whole premises - which has an Initial Evaluation Procedure (IEP) seismic assessment of 100 per cent of New Building Standards (NBS). The building comprises a ground floor area of 292sq m containing teller stations, a strong room and separate offices, with a mezzanine floor area above of 65sq m containing staff amenities including a staff room. A basement area accessed off Upper Queen St, contains six car parks for customers and staff.
Meanwhile, the Kaikohe branch of the ASB in the Northland town’s main retail street, Broadway, sold for $437,000 after receiving 16 bids. With an annual rental income of $33,000, the property’s sale figure delivered a yield of 7.5 percent – reflecting the property’s provincial location compared to the ANZ Bank’s position close to the heart of New Zealand’s biggest city.
The 230 square metre ASB building sitting on 459 square metres of freehold land has been the bank’s presence in Kaikohe for 26-years. The property was marketed by Nicolas Ching of Bayleys Auckland and Neil Campbell from Bayleys Whangarei.
Internally, the bank premises consists of approximately 142 square metres of public customer floor space, sustained by two offices and modern staff amenities – including a kitchenette/lunchroom, storage rooms, and bathrooms. Outside the rear of the building, the property had sealed parking for eight vehicles with a driveway entry off Dickeson Street.
Elsewhere in Bayleys’ Total Property auctions, two adjoining retail sites at 2 – 4 Dorchester Street in the Auckland suburb of Meadowbank sold as one lot for $2,250,000.
The pair of 90 square metre shops sitting on 339 square metres of land have a liquor store and superette as tenants – generating a combined net rental of $64,496 plus GST – with current leases running through until 2024. The property was marketed by James Were and Scott Kirk of Bayleys Auckland Central.
The high-profile corner site overlooking St Johns Road and close to the Meadowbank train station is zoned business – neighbourhood centre, which allows for potential future construction of mixed use retail and residential premises up to three storeys high.
Investors’ appetites for suburban retail property were also reflected in three other sales successfully brokered during Bayleys’ Total Property portfolio auctions.
A retail unit at 7/55 Sainsbury Road in Mount Albert containing a 104 square metre premises within the St Lukes Business Park sold for $715,000.
The unit is leased to the St Lukes Food Market superette and generates a net rental of $45,000 plus GST per annum. The site is currently leased through until 2022. The property was jointly marketed through Janak Darji and Amy Weng from Bayleys Manukau and Nicolas Ching of Bayleys Central Auckland and sold by Phil Haydock of Bayleys Central.
Meanwhile, A unit at 1/55 Sainsbury Road in Mount Albert containing a 174 square metre premises within the St Lukes Business Park sold for $1,114,000.
The unit is leased to a café tenant and generates a net rental of $52,000 plus GST per annum. The site is currently leased through until 2023. The property was jointly marketed through Phil Haydock, and Ken Hu of Bayleys Central Auckland.
Rounding out the auction sales on the day was the transaction of four street-facing units at 45 St George Street in the South Auckland suburb of Papatoetoe – occupied by two retailers paying a combined net rental of $44,869 plus GST per annum.
The 200 square metre premises on 228 square metres of land sold under the auction hammer for $745,000. The property was marketed by Quinn Ngo, Matt Lee and Janak Darji. Tenants within the block are convenience food retailer Papatoetoe Roast and money-lending business Pasifika Pawnbroker – both on new three-year and two-year leases respectively.