Investment units star at auctions

Interest in Auckland’s investment property market remains strong, the results of Bayleys’ first Total Property portfolio auctions of 2018 show. Ten investment properties were sold under the hammer at Bayleys House, including two that were sold prior to the official auction date of Wednesday, March 6.

Bayleys commercial auctioneer Richard Valintine says the market has shifted.

“While there is had a thinner pool of bidders on some of the properties than would have been the case last year, we still achieved good results for our vendors,” he says.

Demand for tenanted commercial units has remained at high levels. There was strong competition for well-located properties that offered owners solid revenue streams.”

Four neighbouring freehold unit title properties in South Auckland, offered by Bayleys agents Stuart Bode, Mike Bradshaw and Tony Chaudhary, started the auction on a high note, with the properties attracting attention from many of the same bidders.

The opening bid of the auction, for Unit H, 132 Cavendish Drive, Manukau, was a bold $1 million, and the property eventually sold for $1.1 million at a yield of 4.22 per cent.

The 282sq m unit, which is occupied by auto-parts supplier Partmaster and comes with seven car parks, currently returns $46,500 a year in net rental income.

The three other units in the highprofile automotive business hub yielded similarly strong results:

● Unit A sold for $2 million after bidding started at $1.75 million at a yield of 6.25 percent. The 612sq m property, which has 14 car parks and is leased to vehicle inspection firm VTNZ until 2024, with two three-year rights of renewal, generates an annual net rental income $125,107.

● Unit C, also occupied by VTNZ, sold for $1.101 million at a yield of 5.57 percent, with the under bidder the owner of Unit A.

The 391sq m property, which has 11 car parks, is leased until 2024, with two three-year rights of renewal, and generates an annual net rental income of $61,400.

● Unit B, which is occupied by tyre-seller Cooper Tyres, sold for $1.215 million at a yield of 4.83 percent, with the under bidder the owner of Unit H. The 353sq m property, which has seven car parks, is leased until 2020, with one three-year right of renewal, and generates an annual net rental income of $58,727.

Other tenanted commercial units that attracted investor attention included:

● Unit 7A, 21 Corinthian Drive, Albany, which was offered by Eddie Zhong and Steven Liu, of Bayleys North Shore Commercial sold for $1.2 million at a yield of 4.47 percent. The

87sq m retail unit in Orchard Park Retail Hub, which is leased to Double Happy Chinese Restaurant, returns $53,672pa.

● Unit 7B, 21 Corinthian Drive, Albany, also offered by Mr Zhong and Mr Liu, sold for $910,000 at a yield of

4.94 percent. The 76sq m retail unit is leased to Smile Desserts and returns $45,000pa.

Valintine says interest in development properties has slowed and that was reflected in the bidding on many of the larger offerings at the auction.

“That said, the highest sale achieved on the floor was for a 3277sq m property in Mangere that lent itself to development.

Bidding for 22-26 Rosella Rd, Mangere, offered by Ben Bayley and Karl Price, of Bayleys South Auckland, started at $1.2 million but spirited competition quickly pushed the price up to $2.013 million.

“The property, which offers 793sq m of buildings, is close to major arterial routes and a wide range of amenities, including Auckland Airport and Middlemore Hospital.

“With a Residential-Single House zone, it would provide the new owner an attractive opportunity to develop.”

Other properties that sold under the hammer were:

● 32 Dominion R d, Kaitaia sold through Shane Snjider, of Bayleys Auckland, and Steven McNally, of Bayleys Kerikeri, for $680,000 at a yield of 7.05 per cent. The 1190sq m property is leased to a wellestablished childcare centre until

2027, with two five-year rights of renewal, and returns $48,000pa.

● 23 Belgium Street, Waiheke, sold through Clive Lonergan and Lisa Hopewell, Bayleys Waiheke, for $1.86 million at a yield of 5.05 percent. The

1618sq m multi-tenanted property currently returns $94,000pa.

● 7/25 Ashfield Road, Wairau Valley, sold as a vacant possession through Trevor Duffin, of Bayleys North Shore, for $370,000. Clockwise from top: properties at Corinthian Drive, Cavendish Drive and Rosella Rd. Dilworth School’s 2017 deputy head boy Joel Ibbs, 18, has been awarded a Staples Education Foundation (SEF) Scholarship for Outstanding Academic Excellence.

SEF Scholarships are awarded to financially challenged but academically talented students and Colliers International capital markets director Blair Peterken says the company is proud sponsor this one.

The $15,000 scholarship, handed to Joel last year, is now funding a Bachelor of Commerce degree majoring in Management at the University of Auckland.

Joel hopes to achieve his goal of one day owning a performance motorsport business or managing a motorsport team.

Colliers International capital markets director Blair Peterken is thrilled to be able to help Joel work towards achieving his dreams.

“Last year Joel achieved Excellence in Level 2 NCEA, despite extended absence from school to undergo two corrective spinal fusion operations,” says Peterken.

“Joel returned to school for one or two days a week to sit, in agony, some additional papers to help him get over the line.”

Joel says following such a lengthy period away from school last year, it was a really proud moment to be selected as one of the senior prefects to lead and represent the school.

“And to be awarded a Staples Education Foundation Scholarship on top of this is truly humbling.”