Air of optimism in Opotiki helps generate good result
108 Church Street, Opotiki. Sold on 11th October 2017
- 330m² two level high-profile property
- Well-maintained with quality fit-out
- 5 onsite car parks
- 413m² land
- A-grade seismic rating at 100% NBS
- Annual net rental $48,685 + GST
- Long-standing tenant, ANZ Bank
- Capital Value - $390,000
- National Total Property marketing campaign with auction method of sale
- Sold under the hammer for $516,000 at a 9.44% yield
- 27 registrations of interest with agents
- 2 active bidders in the auction room and 2 on the phone
- Sold to an Auckland-based investor
Provincial New Zealand can offer commercial property investors some viable and interesting alternatives to big city assets – and naturally, they come at a far more palatable price.
The eastern Bay of Plenty town of Opotiki is on the verge of some interesting times. A report titled Opotiki District Population and Rateable Assessment Projections’ which was presented at the Opotiki District Council early in November, points to broad potential for economic growth and a significant rise in population in the coming decade.
The aquaculture industry, incorporating offshore marine farms, is burgeoning off the Opotiki coast and kiwifruit and Manuka are also showing great promise in the district.
This positive economic backdrop underpinned the recent marketing and sale of the ANZ Bank premises in Opotiki’s main street, with Bayleys Tauranga agent Brendon Bradley calling the town “a little gem”.
“It’s a great little town that’s starting to bat above its weight and I wasn’t surprised to see the buyer come out of Auckland,” he says.
“The property has excellent seismic credentials, is well-maintained and presented and has a proven, long-standing tenant – just what savvy investors like.”
One of the vendors Phillip Buckthought, explains how this sale signals the end of an era for his family.
More than 30 years ago, Phillip’s parents and business partners purpose-built the property for the ANZ bank and held it as a commercial leased investment. Ownership of the property was subsequently passed down to siblings within Phillip’s family.
With several people now involved, a unanimous decision was made to sell and release capital for other purposes.
“Brendon from Bayleys came well-recommended for the job of marketing the property and we were keen on auction as we think it’s a good way to go when the market is buoyant,” says Phillip.
“We were happy with the way the process panned out and things happened as they were supposed to happen.”
Phillip says the regular weekly updates from Brendon and his team meant that all parties were kept up-to-date with feedback and he describes the whole process as “hassle-free”.
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