Tenanted Investment Sale in Porirua

Tenanted Investment Sale in Porirua

1C, 1D and 1E Hagley Street, Porirua. Sold on 9th May 2017.

The Property
- Three fully-tenanted hospitality ground floor units in a retail strip on Hagley Street, in the main CBD area of Porirua City, with tenant car parking to the rear
- The larger offering is 603m2 (two units combined into one) and one smaller unit, 109m2
- Above 80% seismic rating
- Leases expire in 2020 and 2018 with further rights of renewal

Quick Look
- National Total Property marketing campaign with auction method of sale
- SOLD under the hammer as two separate lots for $920,000 and $325,000 representing yields of 7.9% and 5.6% respectively
- Buyers are NZ-based Chinese immigrants who purchased through a buyer’s agent

With all available vacant commercial land having been snapped up in Porirua, tenanted investment properties are highly sought-after by investors looking for opportunities in the buoyant greater Wellington market.

Three unit-titled retail units (configured into one larger tenancy and one smaller) in a popular Porirua precinct received good attention at a Bayleys Wellington auction with the same buyer ultimately securing both lots under the hammer.

The properties had been in the same family ownership for more than 25 years.

Both properties are leased to hospitality businesses, with the long-running Dynasty Chinese Restaurant having a lease over the larger tenancy, and the Chef’s Palette noodle bar in the smaller unit.

The new owner purchased the units as a hands-off investment proposition.

Vendor Comment
Vendors’ representative Jim Chin, is a first-time Bayleys’ client.

Our parents were in the restaurant business for many years and bought these properties at a time when Porirua didn’t have a large format Chinese restaurant. Their Dynasty Chinese Restaurant was a successful enterprise offering Chinese cuisine through buffet and a la carte dining, with patrons coming from all over the Wellington and Kapiti Coast region.

The business was sold some years ago when our parents retired, with the freehold properties retained as an investment. After some time, with the current beneficial owners moving on in years, the decision was made to sell. Jon Pottinger of Bayleys Wellington was recommended to us as proficient at selling property in the Porirua area and his advice on the current commercial property market was invaluable.

We very much appreciated the guidance and “hand-holding” Jon provided to us. Jon invited us to come and observe some auctions a couple of months prior to the sale of our Hagley Street properties and that helped us to understand the process as we hadn’t bought or sold at auction before.

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