Henderson and North Shore sales at Bayleys auction

5:00 AM Saturday May 27, 2017 True Commercial

A property at 373 Great North Rd, housing a BNZ in Henderson’s commercial precinct, sold for $4m. Photo / Supplied

Two Henderson properties sold for $4 million each at Bayleys’ latest Total Property commercial and industrial portfolio auction which has so far produced 19 sales around the North Island at a total value of close to $35m.

A 755sq m retail unit in the Lincoln North Shopping Centre, with a recently renewed seven-year lease to Supercheap Auto NZ, was one of the two Henderson $4m sales.

Bidding started at $2.8m and 22 further bids followed before it eventually sold under the hammer at 5.3 per cent yield through Matt Lee and Nelson Patchett from Bayleys Auckland office, with Tony Chaudhary, Bayleys South Auckland.

It is one of the largest units in the Lincoln North centre, located on the corner of Lincoln and Universal Drive. Supercheap, which has more than 200 Australasian stores, has occupied the unit since 2009 and in July last year signed a new lease for seven years with one further five-year right of renewal. Its lease has fixed annual increases of 3 per cent.

Also selling for $4m was a prominent 808sq m corner site occupied by the BNZ in the heart of Henderson’s commercial precinct.

The property at 373 Great North Rd encompasses a 914sq m building which accommodates the BNZ’s main central Henderson retail branch as well as a BNZ Partners Centre offering business and commercial banking facilities for the West Auckland region. The bank has been a long-established occupant of the property with its current 12-year lease running until December 2020, plus two further three-year rights of renewal.

The property was declared “on the market”, meaning it had passed its reserve price, by auctioneer Richard Valintine at $3,650,000 and a long sequence of further bidding involving three parties pushed the price up a further $350,000 before it finally sold at a 5.5 per cent yield through Laurie Burt and David Han, Bayleys North Shore; and Mike Adams of Bayleys West Auckland division.

It was one of two bank premises to sell at the auction. A smaller property in Mangere Bridge town centre, occupied by the ASB since 1991, was sold for $973,000 at a 3.5 per cent yield by Nicolas Ching and Beterly Pan, Bayleys Auckland.

The 160sq m single level building, seismically strengthened to 67 per cent of New Building Standard, on a high profile 273sq m corner site at 19 Coronation Rd, is leased to ASB Bank until October 2018, with one six-year right of renewal.

Three phone bidders competed with bidders on the floor for the offering which was declared on the market at $855,000. A further 28 bids followed with two bidders battling it out at the end with a sequence of seven $1000 increases occurring before the hammer came down.

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This unit in Lincoln North Shopping centre leased to Supercheap Auto also sold for $4m. Photo / Supplied

North Shore sales

Six North Shore offerings also sold at the Total Property auction. Bayleys North Shore Commercial director Nick Howe-Smith says the properties generated strong bidding with three of five tenanted offerings selling at yields of under, and the other two at just over 5 per cent.

“Vacancy is very low on the Shore and well located and leased properties are keenly sought after by investors. This is enabling us to get some great results for our vendors through the auction method of sale.”

A 1184sq m site at 107 Wairau Rd sold by Brian Caldwell and Ranjan Unka of Bayleys North Shore Commercial for $2.8m at a land value of $2365 per sq m and a 2.27 per cent yield. It is leased, until March 2018, to Car7, which established a car dealership business on the site in 2003 and has one further two-year right of renewal.

The property, which generated more than 30 bids, is located in the Wairau Valley’s Identified Growth Corridor under the Auckland Unitary Plan (part operative).

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Another bank building in Mangere Bridge town centre at 19 Coronation Rd sold for $973,000. Photo / Supplied

“The purpose of the corridor zoning overlay is to provide additional opportunity for retail activities, predominantly large format retail, and could enable more intensive development of this site up to a maximum height of 20m, subject to obtaining resource consent.”

Selling shortly after auction for $2.7m at 100 Hinemoa St, Birkenhead, was a 424sq m character building on a 757sq m corner site with rental and development upside. It has six commercial, hospitality, residential and retail tenancies and sold at a 3.84 per cent yield through Simon Aldridge, Michael Nees and David Huang of Bayleys North Shore Commercial.

One of Takapuna’s smaller CBD properties at 424 Lake Rd attracted big bidding before selling for $1.5m at a 4.1 per cent yield also through Huang, Nees and Aldridge. The 167sq m two-level building on a 235sq m site with a Metropolitan Centre zoning has three separate tenancies, with two street-level retail tenants and an office tenancy above.

The property attracted multiple bidders, including three telephone bidders, and was declared “on the market” at $1,320,000. An additional 20 bids followed which added a further $180,000 to the sale price.

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Located on a corner site 100 Hinemoa St, Birkenhead, this character building sold for $2.7m. Photo / Supplied

Other North Shore and Auckland properties to sell at the auction were:

  • A 175sq m office unit in a multi-unit office, retail and residential building at 75 Corinthian Drive, Albany, sold for $1,095,000 at a 5.4 per cent yield through Jane Sims and Tonia Robertson, Bayleys North Shore Commercial. A family law practice has a new six-year lease over the upper level premises plus six exterior car parks.
  • A 273sq m roadfront warehouse, recently refurbished office and showroom unit at 7 Vega Place, Albany sold for $980,000 at a 5.3 per cent yield through Bayleys North Shore Commercial’s James Kidd and Matt Mimmack. Two established tenants have exercised rights of renewal.
  • A vacant 80sq m Art Deco style building at 225 Onewa Rd, Birkenhead, sold for $650,000 by Oscar Kuang and Owen Ding and James Chan, Bayleys Auckland. Encompassing a third share of 913sq m of roadfront land, the building was until recently used as medical premises.
  • A character villa with an established tenant on a 389sq m site at 44 College Hill, Ponsonby, sold post auction for $1.5m at a 2.9 per cent yield through James Were and Scott Kirk, Bayleys Auckland.
  • A 199sq m recently refurbished two-level CBD Category B historic building at 166 Hobson St, on the corner with Cook St, sold for $1,920,000 at a 5.7 per cent yield. It was sold by Sarah Boles and Nelson Patchett, Bayleys Auckland and Terry Kim, Bayleys North Shore with a new six-year lease to Global Visas Ltd.
  • A 54sq m retail unit at 385 Parnell Rd, Parnell, with two secure basement carparks, went for $505,000 at a 6.5 per cent yield. It was sold with a monthly lease to women’s clothing retailer N to U Ltd, in occupation for close to 17 years, through Andrew Wallace and Cameron Melhuish, Bayleys Auckland.
  • A 144.5sq m character building at 563 Remuera Rd on a high profile 175sq m corner site in Upland Village sold for $1.6m at a 4.75 per cent yield through Wallace and Melhuish. It has a longstanding tenancy to Upland Cafe.
  • A 400sq m industrial unit at 44D Andromeda Cres, East Tamaki with 300sq m of high stud, clear span warehousing sold vacant for $735,000 through Nelson Raines and Karl Price, Bayleys South Auckland.