Big bidding at latest Bayleys auction
The corner property at 371 Dominion Road, Mt Eden, attracted more than 70 bids.
Two NZ Post owned properties were among four commercial and industrial offerings to sell at yields of under five percent at Bayleys’ latest Total Property auction.
A property at 371 Dominion Road, 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 eventually selling for $3,850,000 at a 3.6 per cent yield.
Bidding began at $2,000,000 and in just 12 bids quickly advanced to $3,100,000, at which point it was declared on the market by auctioneer Richard Valintine, meaning it had met its reserve price.
Another 63 bids then followed, which added a further $750,000 to the eventual sale price.
The building at 794 Manukau Rd, where a Post Shop/Kiwibank franchisee shares the premises with a liquor store.
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 of the building, accessed off King Edward Street and currently used for casual parking, offers an immediate development opportunity.
The property’s Local Centre zoning allows buildings up to three-storeys incorporating upper-floor residential.
Haydock says while the property sold at a very low yield, on a land value basis its price is in line with other recent Bayleys’ Mt Eden transactions encompassing larger land holdings on Dominion or Mt Eden Roads which have sold at between $3800-$4000 per sq m.
The other NZ Post owned property put up for sale at the auction by Mellhuish and Haydock, one located on a corner of the Royal Oak roundabout, sold 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.
An industrial unit in Kerwyn Road, East Tamaki, attracted more than 60 bids.
The property’s 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 also 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 220 sq m two-level character building with ground floor retail and offices upstairs on a 531sq m site at 551-553 Remuera Road, Remuera.
The property, which has rear access off Upland Road, sold for $1,690,000.
It has a three-year lease from May 2016, with two three-year rights of renewal, to long established tenant School Uniform Centrewhich 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 765 sq m premises, with a medium stud 587 sq 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.
There was keen interest as well in a smaller 170sq m industrial unit at 11 Stonedon Drive, East Tamaki with two roller doors and three car parks which sold for $720,000 (inclusive of $93,913 GST) at a 5.17 er 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.
The two-level character building with ground floor retail and offices upstairs at 551-553 Remuera Road.
A brand new radiology facility in Whangarei also 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.
Located on a 2,300 sq m site at 11 Kensington Avenue, Whangarei amongst other health care complexes, the 650 sq 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, including the purchaser, 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% yield through Matt Mimmack and Alex Strever of Bayleys North Shore Commercial.
- A multi-tenanted 980 sq m building on a 501 sq m site at 19 Fair Mall Place in the heart of Otara’s town centre was 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 485 sq m upstairs floor, until recently occupied by a nightclub, is vacant.
- Two adjoining retail and office buildings totalling 569 sq m on 488 sq m of land in two 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 under the new Auckland Unitary Plan has a height allowance of 40.5 m.