Sales flurry augers well for 2018
This 5210sq m development site at 136-142 Fanshawe St sold for $30,739,000. Photo / Supplied
A burst of sales since the new coalition government was formed, indicates commercial property investors are comfortable with the political and economic outlook for 2018, says a senior Bayleys commercial broker.
Alan Haydock, leader of Bayleys’ Auckland City & Fringe division, says his team has concluded over $100 million of unconditional sales since late October with a further $50m worth of sales due to go unconditional in the coming few weeks.
“There was a noticeable slowdown in sales activity in the lead up to the September election and in the month-long hiatus which followed while coalition negotiations continued. But once the Government was finalised, and investors realised that its impact on the market was likely to be relatively neutral, activity got moving again. We had a very busy lead up to Christmas and into the New Year.”
Larger sales concluded in the past few months by the Bayleys City & Fringe team include:
- A 5210sq m development site at 136-142 Fanshawe St in Auckland’s CBD was sold in a mortgagee tender to Mansons TCLM for $30,739,000 at $5900 per sqm by Haydock and Damien Bullick. Located near the intersection with Halsey St and opposite the KPMG and former Vodafone buildings, the site is north facing with potential harbour, Victoria Park and CBD views. The site has resource consent in place for a three-stage apartment and car parking development but is likely to be redeveloped into an office building says Mansons TCLM director Culum Manson.
- A total of 250 car parks, all on individual titles, in a substantial carparking complex at 2-4 York St, Newmarket, sold for $16.39m at a 5.1 per cent yield through Haydock and Cameron Melhuish to an Auckland investor. Part of a six-level building on the corner with Khyber Pass, the car parks have long-term leases running until October 2029, to Wilson Parking Limited which also has a management contract over the building.
- A 3358sq m office building on a 1016sq m site at 9 City Rd in Auckland’s CBD sold for $12m at a 6.6 per cent passing yield through Haydock and Bullick to an Auckland-based investor. The six-level, 1980s’ building has multiple tenants including some education providers. It has a Weighted Average Lease Term (WALT) of 5.5 years, plus basement carparking and a further 58 parks in a neighbouring building.
- An 8945sq m development site at 14-22 & 28, 30 Waimarie St, St Heliers, was sold by Mike Adams and Melhuish to an aged care provider for a confidential price.
A carparking complex at 2-4 York St, Newmarket, sold for $16.39m. Photo / Supplied
Bayleys’ Auckland City & Fringe team has also concluded a variety of unconditional sales under $10m in the past three months with a total value of close to $30m.
“It’s business as usual as far as we are concerned, and all the signs are there for another strong year for the commercial property market,” says Haydock.
“Commercial property still provides an attractive home for investment money, with income streams superior to what banks or bonds can provide as well as the prospect of continuing capital growth from the rental increases that are occurring across most sectors of the market.”
For further sales see Around the Block.
Alan Haydock, Bayleys.