Wanganui AA office sale may set new yield record
Wanganui’s new AA office has set a new yield record.
The sale of Wanganui’s newly-built Automobile Association office is believed to have set a new yield record for commercial property in the city.
The 195 sq m single storey building on a 367 sq m site at 202 Victoria Ave on the corner with Ingrestre St in the CBD sold for $970,000 at a Bayleys’ auction representing a yield of 6.6 per cent.
Karl Cameron of Bayleys said the average yield rates for commercial and industrial properties in Wanganui were around the 10 to 12 per cent mark.
He said the listing generated 37 inquiries from potential buyers in Auckland, Cambridge, Taranaki, Wanganui, Manawatu, the Wairarapa, Wellington, Nelson, Christchurch and even as far away as Canada.
The Bayleys’ auction room attracted 11 bidders on the AA site, as well as three telephone bidders with bidding opening at $600,000. The AA has a nine year lease on the property with two further four-year rights of renewal and pays annual rental of $64,250 plus GST.
The successful bidder was a Christchurch investor who bought the property while competing in a charity golf tournament. The bidding spanned three holes of the tournament – which the buyer went on to win.
Cameron said it was heartening to see such investor confidence for commercial premises in Wanganui city and it could well spearhead more new builds and refurbishments of other buildings in the central business district.