Paraparaumu building attracts top auction price of $1.7 million
THE building housing Paraparaumu’s Lewis’s Home Fabrics store fetched top price at a Bayleys commercial auction.
One of 10 properties offered in Thursday’s auction, the property which had a 2011 rating value of $1,575,000, sold for $1,722,500.
The 1100 square metre retail block, owned by a company associated with Lewis’s and partly tenanted by Hardgrave Flooring, returns a net annual rent of $143,000. The sale price represented a passing yield of 8.2 per cent.
The former Hutt Pet Centre premises in Pretoria St, Lower Hutt, attracted 31 bids before finally selling for $705,000.
The property, being sold by the estate of former owner Graeme Forster, has been used as a furniture shop since the Hutt Pet Cen- tre business moved into the nearby Harvey Norman building.
Although it sold below its outdated rating value of $1.4m, the price was in line with pre-auction estimates based on a calculation that it could return a net income of $72,000 a year. The notional yield on investment was 10.2 per cent.
The top priced of four Petone properties was a 251sqm warehouse at 47 Hutt Rd leased to Partmaster. Returning an annual net rent of $52,150 its sale price of $535,000 represented a passing yield of 9.7 per cent.
The neighbouring NZ Window Shades premises at 49 Hutt Rd was passed in at $550,000.
Kensington & Associates’ small warehouse and office at 41 Scholes Ln, which returns a net income of $23,000 a year, sold for $280,000 – a yield of 8.2 per cent.
A four-unit corner property at 132 Nelson St, leased by A & P Panelbeaters and Udy St Takeways, sold for $270,500, a passing yield of 10.4 per cent.
Two modern office and showroom units leased by Aqui-S at 6 Aglionby St, Lower Hutt sold for $480,000 at a yield of 9.3 per cent.
Three other properties failed to sell under the hammer. The Hell’s Pizza shop at 120 The Parade in Island Bay was passed in at $400,000. A multi-unit complex at 2 Centennial Highway, Ngauranga, leased to Protein Baker, Auto IT and Recreation & Canoe & Kayak passed in at $820,000, although it reportedly sold after the auction. A liquor store and a unit at 154 The Terrace passed in at $159,000.
The Ninness Funeral Home property in Porirua’s Kenepuru Dr was withdrawn from sale.