Bayleys auction attracts big bids
wo NZ Post owned properties were among four commercial and industrial offerings to sell at yields of under 5 per cent at Bayleys’ latest Total Property auction.
A property at 371 Dominion Rd, Mt Eden, in which NZ Post/ Kiwibank is one of three occupants, generated the strongest bidding and the highest price at the auction.
Marketed by Cameron Melhuish and Alan Haydock, Bayleys Auckland, the fully occupied 581sq m two- level building on a 974sq m corner site attracted over 70 bids before selling for $ 3,850,000 at a 3.6 per cent yield.
Bidding began at $ 2,000,000 and in just 12 bids advanced to $ 3,100,000, when it was declared on the market by auctioneer Richard Valintine, meaning it had met its reserve price. A further 63 bids followed, adding $ 750,000 to the eventual sale price.
A Post Shop/ Kiwibank franchisee plus a copy centre lease the ground floor with an office tenant above, on three to six- year terms. Melhuish says vacant land to the rear, accessed off King Edward St, used for casual parking, offers an immediate development opportunity. The Local Centre zoning allows buildings up to three storeys, incorporating upperfloor residential.
Haydock says though the property sold at a very low yield, on a land value basis its price i s in line with other recent Bayleys’ Mt Eden transactions with larger landholdings on Dominion or Mt Eden Roads which have sold at between $ 3800-$ 4000 per sq m.
Mellhuish and Haydock sold another NZ Post property, on a corner of the Royal Oak roundabout, for $ 2,070,000 at a 4.97 per cent yield.
The single- level, 277sq m building on a 581sq m site at 794 Manukau Rd has another Post Shop/ Kiwibank franchisee sharing the premises with a liquor store. Its Town Centre zoning has a 27m height overlay with the building occupying only around half of the site. A separate land- only title is used for casual parking and has immediate development potential.
Selling at a 3.38 per cent yield through Quinn Ngo, Owen Ding and James Chan of Bayleys’ international division was a 220sq mtwo- level character building with ground floor retail and offices upstairs on a 531sq m site at 551- 553 Remuera Rd, Remuera. The property, with rear access off Upland Rd, sold for $ 1,690,000. It has a threeyear lease from May 2016, with two three- year rights of renewal, to the School Uniform Centre, which has occupied the building since 1998.
There was also big bidding on two East Tamaki properties, with a high profile industrial unit in Kerwyn Road, East Tamaki, marketed by Jamsheed Sidhwa and Luke Carran, Bayleys South Auckland, attracting over 60 bids. It was declared on the market at $ 1,550,000 after 16 bids and sold for $ 1,825,000. The 765sq m premises, with a medium stud 587sq m factory/ workshop with four roller doors on a high visibility corner site with dual street access, sold at a 4.48 per cent yield on its longstanding monthly tenancy.
A 170sq m industrial unit at 11 Stonedon Drive, East Tamaki with two roller doors and three car parks sold for $ 720,000 ( inclusive of $ 93,913 gst) at a 5.17 per cent yield through Nelson Raines, Bayleys South Auckland. The tenant of 12 years, United Industries, has signed for an additional five years from May 2016 with five five- year rights of renewal.
A brand new radiology facility in Whangarei attracted multiple bidders before selling for $ 3,115,000 at a 6.16 per cent yield, after being declared on the market at $ 2,980,000, through Ranjan Unka, Bayleys North Shore Commercial, and Ross Blomfield, Bayleys Whangarei.
On a 2300 sq m site at 11 Kensington Ave, Whangarei among other healthcare complexes, the 650sq m state- of- the- art facility has a nine- year lease to TRG Imaging, NZ’s largest radiology group, with one six- year right of renewal. Unka says a number of the bidders were Auckland- based investors looking for an opportunity to secure a higher income yield than would be available on a property of similar quality in Auckland. Other properties to sell at the auction included:
A 70 sq m retail unit occupied by liquor store at 52 Oteha Valley Rd, Albany, with a lease recently renewed for three years, sold for $ 585,000 at a 5.14 per cent yield through Matt Mimmack and Alex Strever of Bayleys North Shore Commercial.
A multi- tenanted 980sq m building on a 50 sq m site at 19 Fair Mall Place in the heart of Otara’s town centre, sold by Oscar Kuang and James Chan of Bayleys’ international division for $ 1,760,000 The ground floor is fully leased on three to six year terms to a butcher, TAB, pizza outlet and discount store producing net annual rental income of $ 174,702pa. The 485sq m upstairs floor is vacant.
Two adjoining retail and office buildings totalling 569sq m on 488sq m of land in t wo titles at 28- 30 Broadway, Papakura were sold with vacant possession for $ 545,000 by Kuang and Chan in conjunction with Tony Chaudhary, Bayleys South Auckland.
The property’s Metropolitan Centre zoning has a height allowance of 40.5 m.