Sales of the century

Sales of the century

Total Property - Issue 6 2019

The sale of the freehold ground lease interest in the 2.9139-hectare former Auckland City Council works depot attracted what was hailed as a record price for a single property auction in December 2008.

One of the CBD’s largest underdeveloped commercial land holdings, the Cook Street property sold by mortgagee sale for $43.5 million.

Total Property’s summer 2009 edition recorded the fierce action at the sale, which attracted 300 people to Bayleys’ auction room.

The sale was conducted by Bayleys Auckland senior commercial broker (now director investment sales) Robert Platt and executive director David Bayley. Bidding opened at $25 million and progressed in $1 million and $500,000 lots to $40 million. After further negotiations the property came back on the market at $43.5 million and sold under the hammer.

This stands out not only as one of the top transactions in 20 years of Total Property, but as an economic landmark at the tail end of the global financial crisis (GFC).

David Bayley later said: “Despite the challenges the property market is currently facing, we had widespread interest in the site and most of New Zealand’s most prominent property players were at the auction.” The sale represented “a big vote of confidence in the long-term future of Auckland’s CBD”.

The 125 commercial and industrial properties and businesses listed in the first Total Property portfolio of 2010 was promoted as the biggest-ever for the time of year.

Bayleys Real Estate managing director Mike Bayley wrote that “a realigning of business activities means 'fringe' properties not essential to core business will continue to be sold off as part of corporate rationalisation”.

The sale of New Zealand Retail Property Group's holdings of multiple shops in the Westgate Shopping Centre in Massey, Auckland, and Tauranga’s Fraser Cove Shopping Centre, was one of this country’s biggest sell-downs of retail property.

Some 20 sales, totalling $64 million, were completed to investors, with tenants reading like a ‘Who’s Who’ of retail.

Four industrial properties owned by Bell Tea were listed for sale by international tender in June 2014. The four-page Total Property spread and marketing saw 99 parties register their interest within five days.

The properties, including two plants which produced three million tea bags a day, were sold to different purchasers for a total of $18.65 million.

The largest sale of $10.8 million was achieved for Bell’s main plant and head office, one of three portfolio properties in Auckland’s East Tamaki. All were sold with 12-year leases plus rights of renewal extending into the 2030s.

Also included was a 95-year-old, 2,623-square metre processing and warehouse facility in Dunedin. An “iconic building with development potential”, it was designed and built for Bell in 1924 and added to in the 1950s and 1980s. The four-level property, which required seismic strengthening, sold with vacant possession for $335,000.

A KFC outlet in Porirua had everyone wanting a piece with arguably the most fiercely-contested of all Total Property auctions in April last year. This was the Dominion Post’s most-read property story and Trade Me’s ninth most-viewed listing of the year.

The 230-square metre KFC on a 1,855-square metre corner site beside North City Shopping Centre came with a six-year lease to Restaurant Brands, plus a 12-year right of renewal.

The auction ran for 45 minutes with 168 bids before the restaurant was sold to a local investor by Mark Sherlock of Bayleys Wellington for $2.75 million, well above its $1.57 million rateable value, at a 4.91 percent yield.

Auctioneer Richard Valintine says the price vindicated the sales method. “If we were selling this by private treaty, the vendor might have been comfortable to accept a lesser price, thinking that’s an acceptable yield. But an auction is about letting the market speak, and that’s where the market saw the value.”

Another flurry of interest greeted the former Turakina Māori Girls’ College, near Marton, which became the year’s top listing on Trade Me with 81,000 views, after appearing in Total Property in February 2018.

Twelve buildings totalling some 3,000 square metres on 5.16 hectares of freehold land included classrooms, dormitories, a hall and gymnasium, a commercial kitchen, swimming pool, chapel, playing fields and netball/tennis courts.

It was sold by tender to Rangitīkei iwi Ngāti Apa to relocate its headquarters and health services, and the iwi later announced plans for an education, training and employment centre. Property records show it changed hands for $450,000.

One quirky listing saw the sale of landmark sheep- and ram-shaped buildings in Tirau.

Located on a 2,103-square metre corner site on State Highway 1, the corrugated-iron buildings were sold by tender for an undisclosed sum in late 2016. The capital value was $1.16 million.

The buildings helped spark Tirau’s claim as “corrugated-iron capital of the world”.

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