Year ends on high note at Bayleys auction

5:00 AM Saturday December 12, 2015 Colin Taylor

This childcare centre at 116-120 Surrey Crescent, Grey Lynn, sold for the highest price at the auction of $4,155,000.

Bayleys reports a strong finish to its auction programme for 2015 with 23 commercial and industrial properties selling at its final Auckland Total Property portfolio auction for the year at a total value of over $30 million.  

“There was a big crowd in attendance, which is traditionally the case for our early December Total Property auction, and there was good solid bidding across most offerings,” says John Church, Bayleys national commercial director.

A total of 20 properties were sold under the hammer, with three so far sold after the auction and a number of others under negotiation. Church says low yields were again a feature of the auction with 11 out of 14 tenanted investment offerings selling at yields of between 4.2 per cent and 6 per cent.

“Despite the fact we didn’t think they could be squeezed much tighter, yields have been trending down all year in line with interest rates,” says Church. “Indications from this auction are that investors are already factoring in further interest rate reductions next year on the back of predictions from economists that the Official Cash Rate could go as low as two per cent.”

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The New Brew bar and restaurant at 49A William Pickering Drive, Albany fetched the second highest price of $2,265,000.

Church says the strongest bidding at the auction was on the two properties that fetched the highest price. Three former residential dwellings converted to a childcare centre on a large 1515 sq m site at 116-120 Surrey Crescent, Grey Lynn attracted close to 60 bids from seven parties on the floor and two on the phone. The property was declared on the market by auctioneer Richard Valintine at $4 million and over 30 $5000 increases followed before it eventually went for $4,155,000 at a 4.6 per cent yield through Mark Pittaway and James Chan of Bayleys Auckland.

Currently zoned Residential 6A, the property has a Mixed Use zoning under the Proposed Auckland Unitary Plan (PAUP) and a 10 year lease to NZX listed Evolve Group from July 2012 with two three-year rights of renewal.

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A 317.5 sq m two level architecturally designed building at 8 Newton Rd, Grey Lynn sold for $1.6 million

The New Brew bar and restaurant at 49A William Pickering Drive, Albany attracted close to 50 bids. It was declared on the market at $1.9 million and also generated over 30 more bids before eventually selling several hundred thousand dollars later for $2,265,000 at a 5.4 per cent yield through Ashton Geissler, Ranjan Unka and Damian Stephen of Bayleys North Shore Commercial in conjunction with Tony Chaudhary of Bayleys South Auckland.

The New Brew has been in occupation since the building was constructed in 2001 with a current nine-year lease from September 2014. 

Further north two units in a new retail convenience centre called The Grange nearing completion at 67 Auckland Rd (doubling as State Highway One) on the outskirts of Warkworth also attracted good bidding interest before selling through James Chan and Matt Lee of Bayleys Auckland.

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Two units leased to a Bottle-O outlet and the Coffee Club sold in this new retail convenience centre called The Grange on the outskirts of Warkworth.

A 210 sq m unit, including a 50 sq m covered all-weather deck and courtyard area, sold for $1,550,000 at a 5.z3 per cent yield. It has a 10 year lease to the Coffee Club and one 10 year right of renewal.

A neighbouring 200 sq m unit sold for $1,160,000 at a six per cent yield, with an eight year lease to independently owned and operated retail liquor store Bottle-O that has two four-year rights of renewal.

A 317.5 sq m two level architecturally designed building on a 304 s q m Mixed Use site at 8 Newton Rd, Grey Lynn that sold with vacant possession for $1.6 million through Cameron Melhuish and Andrew Wallace, of Bayleys Auckland. The building has been refurbished to a high standard with character ground floor space and loft styled apartment above

Raglan’s only service station, plus workshop, on a 1167 sq m site at 2 Main Rd was sold post auction for $2,115,000 at a 5.4 per cent yield by Chaudhary. The BP branded service station has a 20 year head lease from July 2014 to a wholly owned subsidiary of No. 8 Retail Group, with four per cent rental increases every two years.

Other properties to sell at the auction included:

  •          Unit M, 52 Oteha Valley Rd, Albany – this 278 sq mstandalone retail building occupied by the Meat King for the past 14 years sold for $2,050,000 at a 5.6 per cent yield through Adam Curtis and Adam Watton of Bayleys North Shore Commercial.
  •          Unit C, 2 Kerwyn Avenue, East Tamaki – comprising a 1149 sq mindustrial unit which sold to an owner occupier for $1.7 million through Tony Chaudhary, John Bolton and Janak Darji of Bayleys South Auckland.
  •          5A Nandina Avenue, East Tamaki – an 806 sq mroad front industrial unit, occupied by gym tenancy for over 25 years, that sold for $1.5 million at a 5.9 per cent yield through Dave Stanley, Mike Marinkovich and Tony Chaudhary, of Bayleys South Auckland.
  •          165 Great South Rd, Manurewa  – this 350 sq m retail block with three tenants – a dairy, hair salon and butcher – on a 455 sq m site sold for $1,550,000 at a 5.85 per cent yield through Tony Chaudhary and Piyush Kumar of Bayleys South Auckland.
  •          7D France St, Eden Terrace - a339 sq m split-level high stud commercial unit with high quality architecturally designed open plan space plus six carparks that sold post auction with vacant possession for $1,250,000throughBen Wallace, Matt Gordon and Cameron Melhuish of Bayleys Auckland.
  •          Unit 2, Shed 19, 137 Quay St, in the Auckland CBD – comprising the mortgagee sale of 482 sq m leasehold commercial unit plus 63.5 sq m outdoor seating area on Princes Wharf with ground rent prepaid unit 2095 for $1,150,000 through Tony Bayley of Bayleys Auckland.
  •          103 Lincoln Rd, Henderson - an809 sq msite with 110 sq m residential dwelling converted for office use and selling with vacant possession for $1 million through Tony Chaudhary of Bayleys South Auckland.
  •          1104 Great North Road, Pt Chevalier – a 255 sq m retail unit in block of shops, occupied by Video Ezy on monthly lease until end of year plus ASB ATM lease, that sold for $1,050,000 at an 8.4 per cent yield through Quinn Ngo and Matt Lee of Bayleys Auckland.
  •          Unit G, 168 Aviemore Drive, Highland Park, Pakuranga – the 314 sq m upper level of a two level commercial building, with a new four year lease to Creative Dental Ltd, sold for $1 million at a 7.9 per cent yield through Geoff Wyatt and Nick Bayley of Bayleys South Auckland.
  •          24 Atkinson Avenue, Otahuhu – a two level 548 sq m building with three ground floor retail outlets and two residential upstairs flats on a Mixed Use 385 sq m corner site with a PAUP height limit of 20.5 metres sold for $985,000 through Piyush Kumar, Shane Snijder and Tony Chaudhary of Bayleys South Auckland.
  •          Unit 7, 17 Airpark Drive, Mangere – this 450 sq m modern, high-stud, tilt slab warehouse in Airport Oaks precinct sold with vacant possession for $870,000 through Nick Bayley and Dave Stanley of Bayleys South Auckland.
  •          29 Neil Avenue, Te Atatu Peninsula - encompassing three retail tenancies - a hairdresser, dairy and chocolate maker - plus a three bedroom flat on 819 sq mcorner sitesold for $880,000 at a 5.4 per cent yield through Tony Chaudhary of Bayleys South Auckland.
  •          9B Victoria Street East, Auckland CBD – a 48 sq m  retail unit with a lease to a convenience store for three years from June 2015 sold for $820,000 at a 5.85 per cent yield through Quinn Ngo and Owen Ding of Bayleys Auckland.
  •          89B Great South Road, Epsom – this two level 111 sq m live and work character unit on 167 sq m site in heart of Epsom town centre, occupied by tailoring business on short term lease, sold for $675,000 at a 4.2 per cent yield through Oscar Kuang and James Chan of Bayleys Auckland and Terry Kim of Bayleys North Shore Commercial.
  •          1977 Great North Road, Avondale – a 265 sq m building occupied by a fruit and vegetable retailer on 202 sq m  of land in a block of shops was sold for $530,000 at a 5 per cent yield through Mike Adams, James Appleby and Quinn Ngo, of Bayleys Auckland.
  •          8/10 Wellington St, Howicka 85 sq m retail unit with a short term lease to a clothing store in The Terraces retail and residential complex was sold for $470,000 at a 7.1 per cent yield through Quinn Ngo of Bayleys Auckland and Geoff Wyatt of Bayleys South Auckland.

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John Church, Bayleys.