Hammer runs hot at Colliers’ auction
Seven modern units in this complex at 175 Millwater Parkway between Silverdale and Orewa sold for a total of $6,793,000.
Eleven of 12 properties were sold under the hammer at Colliers International’s latest auction with the twelfth property currently under contract and likely to be finalised this week.
“A combination of quality tenanted retail units plus five commercial office and warehouse investment properties contributed to the strong clearance rate that generated a sales total of nearly $11.5 million,” says John Bowring, Colliers’ national auction manager.
“The results prove that, with the market as hot as it is, auctions are the best option for most vendors,” Bowring says.
The auction list was anchored by seven retail properties at the new Millwater development between Silverdale and Orewa to the north of Auckland.
The modern units with established tenants fetched between $775,000 and $1.4 million, for a total of $6,793,000 achieving yields between 4.9 per cent and 6.2 per cent.
Bowring says the agency’s strategy with the majority of its auction listings is to market the property to as wide a group of buyers as possible and then use the most effective media channels to produce a very diverse group at auction on the day.
“I think the only way to generate the prices that are being achieved is by getting a large number of unconditional buyers in the same room at the same time. It really is the best method to value properties in this sort of market,” Bowring says.
This large indoor sports venue at 577 Great South Rd in Manukau sold for $2.75 million – the highest individual price of the auction.
The tenanted Millwater complex shops included Mike Pero Real Estate and Bruce Lee Sushi outlets, a superette, a pet shop and a Jetts Gym.
The latter 321 sq mdouble unit with a net annual rental income of $86,921 on a new eight year lease and a further right of renewal of seven years, secured $1.4 million at auction representing a yield of 6.2 per cent.
Euan Stratton who, with colleagues Matt prentice and Shoneet Chand, sold the Millwater properties says the seven investments represented ideal, passive opportunities with set rent review mechanisms securing good future growth for the buyers..
Stratton says the new, two-level complex within the Millwater precinct is well placed as a central hub for the area.
“A 3500 section residential development in Millwater will eventually house over 10,000 people who can be expected to support the local shops,” he says.
The biggest sale of the day was a large indoor sports venue in Manukau which sold for $2.75 million by Ash Vincent, Peter Kermode and Jimmy O’Brien.
The price for the 2095 sq m building on 4775 sqm of land at 577 Great South Road represented a net rental yield of 7.56 per cent.
In action John Bowring, national auction manager for Colliers International.
Vincent says the sale demonstrates that demand is still strong for investments in the higher value ranges.
“The property, that has housed an indoor sports facility since being built, still attracted multiple unconditional bidders despite its larger scale.”
Investors didn’t shy away from ‘empty’ space either, with several vacant premises selling for between $365,000 and $1.2 million.
The latter was achieved for a 400 sq m, Mt Eden warehouse and office property sold by Kermode and John Davies on Mixed Use zoned city fringe land at 12 Akepiro St, Grey Lynn..
Kermode described it as “a hidden gem” with its added bonus of flexible zoning offering a number of future options.
“We received multiple inquiries from small business owners looking for former warehouse or industrial spaces to develop into apartment and studio configurations. This building was a perfect fit for many of these potential buyers.
“Purchasers with residential motivations lost out on this occasion to an owner occupier looking for functional, secure, city fringe warehousing with future development potential,” says Kermode.
Two other properties sold at the Colliers’ auction were vacant, 143 sq m units at 71 Symonds St, Auckland City, which were sold by Jonathan Lynch and Kris Ongley for $365,000 and $370,000.
From left to right; Euan Stratton, Ash Vincent & Peter Kermode of Colliers international.