Auction hammer falls on Hammer Hardware premises
38-42 Princes Street, Putaruru, South Waikato
- 1960s’ building added to in 2007, with around 1,092m² warehouse/retail space plus covered loading bay and mezzanine staff and storage area
- Sited on 1,204m² commercially-zoned freehold land in the centre of Putaruru
- Leased to Hammer Hardware
- three-year lease expiring in 2020 with five further 3yr-rights of renewal
- 3-yearly rent reviews
- net annual rental of $60,000.00 +GST+OPEX
- National Total Property marketing campaign with auction method of sale
- SOLD for $776,000 at a 7.7% yield
- Strong levels of enquiry boosted by a Bayleys PR campaign
- 2 bidders in the auction room and one on the telephone on auction day
- Sold to an Auckland-based businessman with a varied property portfolio, including other provincial stock
The Kiwi-owned and operated franchise chain Hammer Hardware supplies the building and landscaping trade, and DIY shoppers and, as in other provincial areas, the Putaruru store plays an important role in the small service town.
Mike Swanson and Alex ten Hove of Bayleys Waikato were called in to market the Princes Street property which houses the Hammer Hardware outlet and in true Bayleys style, left no stone unturned in the quest to find a new owner.
“The Total Property campaign and the associated media coverage resonated with investors from both within and outside the Waikato region,” says Mike.
“There’s an appetite for high yields and only provincial stock can really offer that in today’s market,” says Mike.
“I’d classify the bidders that we had on auction day as A-grade in terms of their capacity and the eventual buyer – out of Auckland – was very pleased with the yield which was just shy of 8 percent.”
Putaruru locals Paul and Christine Strange, sold the property after more than a decade of ownership.
Paul and Christine were the founding operators of the Putaruru Hammer Hardware store and were at the helm for 26 years before selling the business.
They’d owned the building itself for 11½ years and when they decided to sell that, too, they enlisted the help of Bayleys Waikato on the recommendation of a friend.
“We found the auction process to be really good both in the lead up to the auction and on the actual day,” says Christine.
“The property had a great marketing programme and the meetings and communications in the weeks prior to auction day were very informative.
“It gave us a good insight into the current market and relevant feedback from prospective purchasers.”
Christine says the pre-auction advisory meeting was really helpful and auction day went extremely well.
“The sale price was a bit above our expectations, and we are very happy with Bayleys Hamilton and their agents we dealt with.”
Read more customer stories
Subscribe to receive the latest commercial news and insights from Bayleys Total Property