Taranaki property sets regional record price
241 Devon Street West, New Plymouth
- 619m² retail property on high profile corner site with dual street access
- 2,092m² land over two freehold titles
- leased to Lion Liquor Retail Limited on a 5-year lease with 5x3-years rights of renewal
- Returning $64,500 p.a. plus GST
- 20 car parks
- Business B zoning
- Recently strengthened to 67% NBS
- National Total Property marketing campaign with auction method of sale
- SOLD for $1,175,000 at a 5.5% yield
- More than 40 direct enquiries in response to the marketing campaign
- 8 known bidders in the room and a further 4 active on the telephone
- Purchased by a local investor who was out of the country at the time and had a representative bidding on the phone.
The 5.5% yield attained through the sale of this sought-after property is a record for the Bayleys Taranaki office – and is believed to have set a new record for the district as a whole.
Alan (AJ) Johnston and Iain Taylor of Bayleys Taranaki marketed the property by auction and say the nationwide Total Property campaign brought investors out of the woodwork.
“Out-of-town interest was very strong and showed that there is robust appeal for regional commercial property offerings,” says AJ.
“Bidding opened at $700,000 and quickly jumped to $900,000 which knocked a few contenders out.
“Investors from outside of Taranaki saw clear value in the property and its tenant covenant and it’s fair to say, this pushed local buyers to up their bids.”
The commercial property market in Taranaki is very positive and AJ says investors from all around the country are recognising that the returns in regional New Zealand are worth pursuing.
The sale of the property has cemented retirement plans for Taranaki farmers, Jack and Beth Martin.
When Jack and Beth Martin bought their Toko farm in the Taranaki district in 1960, they competed for it at auction – so the couple are no strangers to the auction process.
“Farmers understand auctions as it’s also how most of our livestock are bought and sold,” says Jack.
The Martins bought the Devon Street property 24 years ago to provide a passive income steam to supplement their on-farm activities and to set them up for retirement.
“The idea was that by the time we retired, the property would have paid for itself and that proved to be the case,” says Jack.
“While we did initially wonder if auction was the way to go when selling the Devon Street property, we were encouraged by the fact that the building was in a great location and had a solid tenant which is what investors want.
“A valuation we had done prior to the sale gave us confidence that our thoughts about price were on the money – but the auction result really exceeded our expectations.”
Beth and Jack praise the Bayleys team for their market knowledge and calm handling of the whole process.
“It was great to be in the hands of AJ and Iain who made everything easy for us.”
Now, the Martins are happily settled in their Taranaki retirement village and embarking on the next stage of their life having secured their dream unit thanks to the successful sale.
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