Bayleys auction attracts big bids

6:31 PM Friday September 22, 2017 True Commercial

The retail unit in The Grange centre, Warkworth. Photo / Supplied

Strong bidding across a wide range of properties at Bayleys’ latest Total Property auction in Auckland resulted in over $21m in sales, with an 80 per cent clearance rate under the hammer.

Prices ranged from $830,000 to $6,810,000 with the highest price achieved for an industrial property at 121 Morrin Rd, St Johns, which also generated the most bidding.

“This was one of the most heavily bid properties we’ve had up for auction in recent years and attracted a total of 125 bids from multiple parties before it eventually sold,” says Bayleys’ commercial auctioneer Richard Valintine.

Bidding started at $3.4m on the modern 2312sq m industrial building on a 4755sq m site in the St Johns/Glen Innes industrial precinct and the property was declared on the market at $5.3m by Valintine.

More than 100 additional bids followed before the hammer finally came down at $6,810,000 .

“We had two parties batting it from around the $6m mark in a very long sequence of mostly $10,000 increases before it eventually sold to a buyer that will occupy the property,” says Jamsheed Sidhwa, who marketed the property with Luke Carran and James Valintine.

The property has 1990sq m of high-stud warehousing with six roller doors, 262sq m of office and a large front yard and parking area.

It will provide the new owner with short term holding income of $265,000 per annum until January of next year.

Another heavily bid property was a bulk retail store on a large site at 303-305 Great South Rd, Papakura, which fetched the next highest price of $3,440,000.

Marketed by Quinn Ngo, Matt Lee and James Chan of Bayleys International division in conjunction with Piyush Kumar, Bayleys South Auckland, it comprised a 734sq m Asian supermarket located on a 2023sq m Mixed Use zoned site.

True Commercial - Lot 5%2c 20 Ra Ora Drive%2c East Tamaki .jpg

The yard at Ra Ora Drive, East Tamaki. Photo / Supplied

Bidding on this property started at $2m and it was declared on the market at $2.8m.

A flurry of further bids added another $640,000 to the final sale price which represented a yield of 4.73 per cent on its four-year lease from April 2017 to Saveway Supermarket which has been in occupation for a decade.

“One of the main attractions for the many bidders on this property was its significant under-utilised land component with the building taking up less than half of the site,” says Chan.

“The property has wide frontage and considerable exposure to a main arterial road and its flexible Business Mixed Use zoning means it has future commercial and/or residential development potential up to a maximum building height of 18m.”

Other properties to sell at the Auckland Total Property auction included:

  • A 119sq m retail unit in The Grange retail convenience centre on SH1 in Warkworth which sold for $830,000 at a 5.91 per cent yield through Matt Lee and James Chan and Henry Napier, Bayleys Warkworth. It has a new eight-year lease with annual rent increases of three per cent to Vivo Hair & Beauty, which has 50 salons.
  • A 481sq m commercial building on a 801sq m Town Centre zoned site (21m height allowance) at 49-55 Birkenhead Ave, Birkenhead sold for $1,867,000 at a 6 per cent yield through Michael Nees, David Huang, Bayleys North Shore Commercial, Oscar Kuang, Bayleys Auckland and Tony Chaudhary, Bayleys South Auckland. It has three commercial tenants and a basement 148sq m residential tenancy, with nine to 15 month demolition clauses in the majority of leases.
  • A 10-year-old, four-level standalone building on a 269sq m site with a Mixed Use zoning at 11 Farnham St, Parnell sold for $3,220,000 through Millie Liang of Bayleys’ International division. Its ground floor provides internal garaging for up to six cars, with partitioned offices and amenities on Level 1 and two apartment levels above.
  • A 515sq m recently refurbished industrial building on a 521sq m Mixed Use zoned site at 12 George Terrace, Onehunga sold with vacant possession for $1.4m through James Valintine and William Gubb, Bayleys Auckland. It was declared on the market at $1.28m.
  • A 4855sq m metalled, fully fenced yard area at 20 Ra Ora Drive, East Tamaki with a Light Industry zoning sold with vacant possession for $2m through John Bolton, Roy Rudolph and Katie Wu, Bayleys South Auckland.
  • A 448sq m warehouse building used for bulk retailing on a 990sq m site with two road frontages at 305 Great South Rd, Takanini sold with vacant possession for $1,520,000 through Shane Snijder and Peter Migounoff, Bayleys South Auckland.

Bayleys also sold a further $10m worth of property at other Total Property sales around the country, including two sales in Christchurch on behalf of NZ Post.

At a Hamilton auction, a 986sq m Farm Source rural supplies services store on a 3948sq m site at 1 Railway Rd, Taupiri sold for $2,250,000 at a 6.12 per cent yield through Josh Smith, Bayleys Waikato. The Fonterra subsidiary’s eight-year lease runs until 2023.

At the same auction, Smith and Belinda Sammons from Bayleys Whitianga also sold an 822sq m commercially zoned site at 148 Main Rd, Tairua (SH25) for $553,000 at a 5.39 per cent yield. The property has a single level street front building with an established bakery tenancy plus three storage sheds at rear.

At an auction in Tauranga, a 330sq m commercial building occupied by ANZ Bank since its construction in 1985 on a 413sq m CBD site at 108 Church St, Opotiki sold for $516,000 at a 9.44 per cent yield through Brendon and Lynn Bradley and Kim Williams, Bayleys Tauranga.

The bank is currently on a one-year lease from July with five one-year rights of renewal.