The commercial and industrial property market has entered 2019 on the back of a strong finish to 2018.
A total of 38 properties around the North Island sold at a total value of $56,374,000 at Bayleys’ final Total Property portfolio auctions for 2018.
The auctions held in Auckland, Hamilton, Tauranga, Taupo, New Plymouth and Wellington in December achieved an overall clearance rate of 76 percent on the 50 properties offered for sale.
One hundred per cent clearance rates were obtained on auctions in Tauranga, Taupo and Wellington, with all 15 properties put up for sale in Wellington selling.
Bayleys commercial auctioneer Richard Valintine says the December Total Property auctions capped off one of the best years ever for vendors who utilised the auction process to sell their properties.
The highest volume of sales were concluded at Auckland and Wellington auctions where a total of 146 commercial auctions were called in 2018 and 113 properties were sold at a total sales value of over $150 million.
“While the number of auctions was down a little last year on 2017, the clearance rate of 77 percent achieved in these two locations was up from 73 percent the year before,” says Valintine. “This is a very good result in what is generally considered to be a more challenging market and demonstrates that auctions continue to be a very effective method of sale in all market conditions.”
Properties to sell included:
Unit 1, 28 Anvil Road, Silverdale: 246m² industrial unit, recently repainted and refreshed, with five car parks sold with vacant possession for $750,000. (Rosemary Wakeman, Matt Mimmack, Bayleys North Shore)
Unit 2, 96 Rosedale Rd, Albany: 90m² unit in Rosedale Retail Centre sold for $900,000 at a 5.22% yield. Lease to established tenant renewed to May 2022 with further three-year right of renewal. (Eddie Zhong, Steven Liu, Meng He, Bayleys North Shore)
6C Wingate Street, Avondale: 80m² middle unit in modern retail block in town centre with access also from Great North Road sold for $960,000 at a 4.9% yield. New fitout for Domino’s Pizza NZ on nine-year lease from October 2018 with 2x5yrRoR. (Tony Chaudhary Janak Darji, Bayleys South Auckland; Mike Bradshaw, Bayleys Auckland)
Unit 4, 3 Margaret Street, Freemans Bay: 53m² ground level commercial unit with two car parks leased to legal firm sold for $620,000 at a 4.35% yield. Approximately 100m from Ponsonby Road and Jervois Road. (Stuart Bode, Mike Bradshaw, Mike Adams Bayleys Auckland)
27 Hargreaves Street, Auckland Central: Renovated 318m² character office building plus 30m2 deck on 304m2 rectangular site with Mixed Use zoning sold for $3,250,000 at a 5.27% yield. Six-year lease from March 2018 with 2x3yrRoR to Studio South Ltd. (Damien Bullick, Alan Haydock, Mike Adams Bayleys Auckland)
371-373 Remuera Road, Remuera: 598m² three-level 1970s’ building on 229 m² site zoned Town Centre sold for $4,325,000 at a 4.66% yield. Remuera Local café and bar lease of 319m² of ground floor and basement space runs until mid-2023, with 2x6yrRoR, with balance of retail space and upper level office premises occupied by two other tenants. (Alan Haydock, Damien Bullick, Andrew Wallace, Quinn Ngo, Bayleys Auckland)
155 Neilson Street, Onehunga: Recently refurbished 625m² warehouse, office and showroom building on 980m² site zoned Heavy Industry sold for $1,750,000 at a 5.24% yield. Two tenants with varied lease terms. (James Hill, James Valintine, Sunil Bhana, Bayleys Auckland; Tony Chaudhary, Amy Weng, Bayleys South Auckland)
3 Pukemiro Street, Onehunga: Functional, standalone 390m² industrial building comprising clear span warehouse, office and amenities on 556m² Heavy Industry site sold with vacant possession for $1,150,000. (William Gubb, James Valintine, Bayleys Auckland)
413 Tamaki Drive, St Heliers: 288m² two-level building on Local Centre zoned 235m² opposite St Heliers beach and close to intersection with St Heliers Bay Road sold for $4,325,000 at a 3.59% yield. Two tenants on 10-year leases which both run until 2022 with no rights of renewal. (Cameron Melhuish, Andrew Wallace, James Chan, Bayleys Auckland)
Unit 1, 5 Aviemore Drive, Highland Park, Pakuranga: 135m² retail unit in 10-unit development completed in 2006 sold for $1,305,000 at a 4.85% yield. Ten-year lease from December 2016 to Domino’s Pizza NZ. (Tony Chaudhary, Janak Darji, Amy Weng, Bayleys South Auckland)
33A Springs Rd, East Tamaki: 897m² mid-1980s industrial unit sold vacant for $2,300,000. 647m² warehouse, with 6.5m stud, two roller doors and 3 tonne gantry, plus two levels of office and showroom space. (John Bolton, Katie Wu, Roy Rudolph, Bayleys South Auckland)
Unit 5, 22 Polaris Place, East Tamaki: 208m² high stud warehouse and office unit plus four parking spaces in new industrial complex sold for $800,000 at a 4.87% yield. Three-year lease to BRP Electrical with one five-year right of renewal. (Jarrod Qin, Nicolas Ching, Bayleys Auckland; Ben Bayley, Bayleys South Auckland)
39B Holmes Rd, Manurewa: 382m2 modern industrial workshop on half share of 1,182m2 site with good yard area and off street parking sold for $771,000 at a 5.41%. Electric fencing occupant of 15 years now on monthly lease. (Peter Migounoff, Piyush Kumar, Bayleys South Auckland)
44-48 King Street, Pukekohe: 381m² building on 841m² site with 12 car parks at rear in main retail location sold for $2,005,000 at a 5.55% yield. Long standing pharmacy plus Dollar World shop are on three and four year leases. (Shane Snijder, Graeme Moore, Mark Fourie Bayleys South Auckland)
96 Ulster Street, Hamilton Central: 685m² two-level building (pictured above) purpose built as Bayleys Waikato’s regional headquarters in 2011 on 1,766m² corner site with 25 parking spaces sold for $4,630,000 at a 4.84% yield. Refurbished and modernised in 2015, it has a 10-year lease until 2025 with 2x6yrRoR. (Mike Swanson, Alex ten Hove, Bayleys Waikato)
1100 Victoria Street, Hamilton Central: 160m² single-level building in main street fringe CBD location sold for $895,000 at a 5.25% yield. Three-year lease from 2016 to dental practice plus 2x3yrRoR. (Rebecca Bruce, David Cashmore, Bayleys Waikato)
56 Sunshine Avenue, Te Rapa, Hamilton: 1012m² industrial zoned site sold with vacant possession for $630,000. Existing residential use rights with a three-bedroom house at front and warehouse at rear. (Jordan Metcalfe, Rebecca Bruce, Bayleys Waikato)
60 Sunshine Avenue, Te Rapa, Hamilton: 1012m² industrial site sold with vacant possession for $607,500. 432m² of warehousing with 6 roller doors with original 69m2 residential structure in front most recently used as office space. (Jordan Metcalfe, Rebecca Bruce, Bayleys Waikato)
BAY OF PLENTY/TAUPO
2 Jude Place, Bethlehem, Tauranga: Four-year-old 953m² Ridge Plaza retail complex on 2,088m² corner site with 21 car parks sold for $3,050,000 at a 5.10% yield. Fully leased to six tenants. (Brendon, Lynn and Ryan Bradley, Bayleys Tauranga)
2 Roxanne Place, Poike, Tauranga: modern 848m² building with high stud warehousing and air-conditioned office on a 1,794m² site with large sealed yard providing 24 car parks sold for $1.65 million at a 6.06% yield. Five-year lease from September 2018 to Skatescool Tauranga. (Jo Stewart, Lloyd Davidson, Bayleys Tauranga)
4 Roberts Street, Taupo: 471m² bar and restaurant plus substantial cobbled outdoor area overlooking lake on 372m² site on corner with Lake Terrace sold for $2,050,000 at a 4.88% yield. Five-year lease to Pub N Grub from April 2015 plus 2x5yrRoR. (Brendan Gallagher, Bayleys Taupo)
1 Tongariro Street, Taupo: single-level 441m² building on 362m² prime corner site with future development potential, at intersection with Lake Terrace opposite lakefront,sold for $1,810,00 at a 5.45% yield. Fully leased to anchor tenant Waterside Restaurant and Taupo Rod & Tackle. (Brendan Gallagher, Bayleys Taupo)
LOWER NORTH ISLAND
50 Sackville St, Fitzroy, New Plymouth: 209m² single-level commercial building on 809m² site with parking at rear sold for $780,000 at a 6.15% yield. Long standing tenant Sporty’s Café & Bar has a nine-year lease from September 2016 plus 2x9yrRoR. (Iain Taylor, Alan Johnston, Bayleys Taranaki)
44 Riverbank Road, Otaki: Recently refurbished and painted 730m² warehouse on 1,540m² site with six car parks sold for $510,000 at a 7.17% yield. Leased to rubber and plastic recycler Matta Products, which has made a considerable investment in plant, for seven years from November 2012 with 2x2yrRoR. (Paul Adams, Stephen Lange, Bayleys Wellington)
21 Main Street, Otaki: 226m² former bank premises, with seismic assessmen tof 70% of NBS, on 574m² site sold for $355,000. Rental of $6,000 pa from ATM leased to ANZ, otherwise vacant. (Steven Firth, Fraser Press, Bayleys Wellington)
10 Wall Place, Kenepuru, Porirua: Fully leased, 810m² industrial building with four tenants on 1,634m² site sold for $1,215,000 at a 6.42% yield. The two largest tenancies are due for rent reviews and renewals over the next 12 months. (Mark Walker, Jon Pottinger, Bayleys Wellington)
222-228 Main Street, Upper Hutt: Two-level 810m² commercial building on prominent 452m² corner site sold with vacant possession for $420,000. (Ethan Hourigan, James Higgie, Bayleys Wellington)
Unit 19, 80-82 Eastern Hutt Road, Wingate, Lower Hutt: 180m² warehouse/ workshop with mezzanine offices and four car parks sold for $220,000 at a 5.95% yield. In a 20-unit business park, it is leased to Underwater Solutions Ltd for two years from April 2018 with 2x2yrRoR. (Bhakti Mistry, Ethan Hourigan, Bayleys Wellington)
53-55 Treadwell Street, Naenae, Lower Hutt: 470m² two-level commercial premises on 298m² corner site in Naenae shopping centre sold with vacant possession for $325,000. Opportunity to add value through building strengthening. (Jon Pottinger, Ethan Hourigan, Bayleys Wellington)
407-409 Hutt Road, Alicetown, Lower Hutt: 709m² industrial building on 1,024m² site adjacent to motorway with dual access sold fully leased until late 2019 for $2,000,000 at a 6.86% yield. 480m² trade showroom/office at front and 229m² rear workshop. (Andrew Smith, Paul Cudby, Bayleys Wellington)
39 Seaview Road, Seaview, Lower Hutt: 640m² vehicle testing station on 1,330m² site with dual access off two main roads sold for $2,250,000 at a 7.01% yield. Eleven year lease to VTNZ from April 2011, with no renewal right. (Fraser Press, Bayleys Wellington)
53 Port Road, Seaview: 926m² engineering workshop with multiple roller doors on 1,158m² site with 40m road frontage sold with vacant possession from March 2019 for $1,100,000. Six off-street parking spaces plus occupation licence for 108m2 fenced yard on southern boundary. (Andrew Smith, Paul Cudby, Bayleys Wellington)
284 Jackson Street, Petone: 297m² bank building strengthened to over 67% of NBS on 304m² corner site sold with vacant possession from January for $1,300,000. (Andrew Smith, Paul Cudby, Bayleys Wellington)
23 Gear Street, Petone: Comprehensively refurbished property with A grade fit-out comprising 120m² showroom, 110m² office/apartment and 161m² workshop sold with vacant possession for $1,100,000. Estimated potential net annual rental income of $75,000pa. (Fraser Press, Bayleys Wellington)
47 Hutt Road, Petone: 251m² showroom/warehouse building on 369m² site sold with vacant possession for $750,000. Estimated potential net annual rental income $55,000pa. (Andrew Smith, Paul Cudby, Bayleys Wellington)
Unit 2, 12 Cornish Street, Petone: 183m² clear span warehouse with high stud roller door plus 87m2 office/ amenities and two car parks close to SH2 sold with vacant possession for $390,000. (Richard Faisandier, Bayleys Wellington)
Unit 13, 5-7 Lower Tyers Road, Ngauranga, Wellington: 955m² industrial building with 80% of NBS seismic assessment plus five car parks sold with vacant possession for $900,000. (Fraser Press, Ethan Hourigan, Bayleys Wellington)
219 Onepu Road, Lyall Bay Road, Wellington: Two-level, recently refurbished 170m² character timber building on 491m² corner site sold for $1,910,000. Botanist Café & Restaurant occupies ground floor with nine years to run on lease with two two-bedroom apartments above. (Richard Faisandier, Mark Walker, Bayleys Wellington)