1970s car yard tops bidding
Close to $33 million worth of commercial property has for sold from Bayleys’ latest round of Total Property auctions around New Zealand. A total of 22 properties were sold at auctions in Auckland, Tauranga, Rotorua, Wellington and Christchurch.
In one of the highest priced underthe-hammer sales of the year, a large commercial site on the fringe of Tauranga’s CBD was sold for $6.25 million by Lloyd Davidson of Bayleys’ Tauranga office.
At 199, 207 & 213 Cameron Rd, the 2192sq m City Centre-zoned freehold redevelopment site — in three titles — sold at a land value of $2851 persquare-metre, and at a 3.05 per cent yield on its two tenancies.
It is fully leased to a car dealership and a dive training and retail business which have leases running until August 2020. Located beside Tauranga Central Fire Station, it is on the main arterial route into and out of the city centre.
“Car dealerships have been operating from parts of the site since the early 1970s, not surprisingly given its huge frontage to such a busy arterial road,” says Davidson. “But this is unlikely to be the case for much longer with increasing land values resulting in more intensive mixed use development around the CBD.
“The property is now under developed in terms of both of its utilisation and return, with its City Centre zoning allowing for a wider range of commercial and or residential uses up to a height of 19m.”
Bayleys Tauranga commercial sales manager Mark Walton says about 70-80 people, including key developers, attended the auction. And each of three commercial Tauranga commercial properties advertised, sold under the hammer.
Henderson
In Auckland, the highest price fetched was $3.93 million for a 756 sq m corner store in the Lincoln North Shopping Centre at 192 Universal Drive, Henderson.
The store, which underwent a major renovation earlier this year, was sold at a 5.73 per cent yield on its current lease to Super Cheap Auto NZ until July 2023 with annual fixed three per cent rental increases. The deal was brokered by Matt Lee, James Chan and Quinn Ngo of Bayleys Auckland international division in conjunction with Terry Kim and David Han, Bayleys North Shore.
Two properties in Pt Chevalier’s town centre were also sold at the Auckland auction. An underutilised 696 sq m site with redevelopment potential zoned Business Neighbourhood Centre at 350 Point Chevalier Rd sold with vacant possession for $1.87m at a land value $2,686per sq m through John Procter and Alan Elliott. It previously housed a greengrocer’s store on its road frontage for over 50 years.
Point Chev
A long standing fruit and vegetable shop of 345sq m in a retail complex with plenty of onsite car parks at 1110 Great North Rd sold for $1.55 million. Leased to PTC Fresh NZ for five years from December 2016, with two fiveyear rights of renewal, it sold for $1.55 million at a 6.99 per cent yield through Nicolas Ching, Quinn Ngo and James Chan of Bayleys’ international division.
Attracting the strongest bidding competition in Auckland was a small unit opposite the anchor Tai Ping supermarket tenancy in the Rosedale Retail Centre which sold for $890,000 at a 4.22 per cent yield through Eddie Zhong, Steven Liu and Meng He, Bayleys North Shore Commercial.
The auction of the 73sq m shop, with just under 13 months to run on its lease to a health supplements and souvenir retailer, was brought forward a week after the vendor accepted a pre-auction offer of $750,000 which became the declared reserve. Strong bidding from six parties then pushed the final sale price up a further $140,000 before the hammer finally came down.
Across the North Island
Elsewhere in the country, both properties put up for auction in Rotorua sold, all three Wellington industrial offerings went under the hammer and six out of seven properties in an industrial development in Sockburn, Chrsitchurch also sold individually at a total value of $6.355 million. Meanwhile, other properties to sell in the northern North Island included:
● Unit 7, 162-178 Wairau Rd, Wairau Valley: A 45 sq m unit at the rear of Wairau Junction retail complex sold for $550,000 at a 5.56 per cent yield through Andrew Lin, Bayleys South Auckland and Ranjan Unka, Bayleys North Shore. It has a four-year lease to Persia Kebabs from July 2017.
● Unit D, 18 Ashfield Road, Wairau Valley: An industrial unit comprising a 110 sq m ground floor and 30 sq m storage/mezzanine area, with a month-by-month tenancy, sold for $440,000 at $4000 per sq m through Trevor Duffin, James Yu and Matt Mimmack, Bayleys North Shore.
● A206/44 Courthouse Lane, Auckland CBD: A 45 sq m unit in Chancery Square leased to a property management company sold for $380,000 at an 8.82 per cent yield through Mike Adams and Jean-Paul
Smit, Bayleys Auckland
● 272A State Highway 2, Bethlehem, Tauranga: A 305 sq m two-level commercial building on an 809 sq m site with a high profile SH2 frontage sold for $1.26 million at a 4.98 per cent yield through Myles Addington, Bayleys Tauranga. A pharmacy is the anchor ground floor tenancy with a smaller dental tenancy above, both on renewed leases until 2021.
● 66 Koromiko St, Judea, Tauranga: A 1519 sq m standalone warehouse/workshop building on a 2,536 sq m industrial site sold for $1.8 million at a 6.78 per cent yield through Graeme Coleman, Bayleys Tauranga. Paramount Stainless has renewed its lease for three years.
● 40-42 White St, Fenton Park, Rotorua: a 746 sq m 1980s industrial building on a 1370sq m site sold for $865,000 at a 6.32 per cent yield through Mark Slade and Brei Gudsell, Bayleys Rotorua. It has three leases, with an anchor auto tenancy on a new five-year term.