Big crowds and low yields feature at auction
This century-old retail building at 293-297 Ponsonby Rd, Ponsonby, fetched the highest price of the auction at $2,820,000.
Ten properties sold at Bayleys’ latest Total Property auction in Auckland fetching a total value of $13.792 million with low yields once again being the order of the day for the most sought after offerings.
A large crowd, in attendance for the start of the auction, saw the first property, a 70 sq m century-old retail building on a 366 sq m site at 293-297 Ponsonby Rd, Ponsonby, sell for the highest price of the day of $2,820,000. Bidding started at $1.75 million and it was sold at a 5.3 per cent yield by Cameron Melhuish, Sunil Bhana and James Chan of Bayleys Auckland on behalf of a vendor who had owned it for nearly half a century.
Originally built around 1913, the building has undergone various renovations and additions over the years and currently provides three single-level retail tenancies at popular College Hill end of Ponsonby Rd. It is occupied by Price Wise, Sierra Café and Harvey World Travel with two of the tenants on final renewals of leases that started in 1997 and 2002.
Next under the hammer was a much smaller property 3140 Great North Rd, New Lynn which attracted the strongest bidding of the day. Comprising a 80 sq m retail outlet on a 150 sq m site, next to a large site on which a new Bunnings hardware store is being developed, it sold for $393,500 at a 4 per cent yield on its $15,800 per annum lease to Instant Cash in a Flash which has a final expiry of May 2018.
Marketed by Mike Adams and Paul Dixon of Bayleys Auckland, the property attracted over 70 bids starting at $150,000. It was declared “on the market” at $310,000 followed by 52 bids with a long series of $1000 and $500 increases before finally selling.
Two other properties which sold for over $2 million also attracted solid bidding. The Howick Motor Lodge comprising 10 units plus a four bedroom manager’s home and office on a 1677 sq m site at 682 Pakuranga Rd, Howick, sold as freehold going concern for $2,350,000 through Shiona Dyer and Paul Dixon of Bayleys Auckland; and Kevin Barber of Bayleys Howick. In Auckland’s CBD, a 250 sq m penthouse floor, with live and work options, at 152 Quay St sold for $2,060,000 through Gary and Ben Wallace of Bayleys Auckland.
Other properties to sell at the Auckland Total Property auction included:
- Two retail units in high profile position on opposite sides of the entrance to the Royal Oak shopping mall sold as one lot for $750,000 at a 7.2 per cent yield through Matt Lee, James Chan and Owen Ding of Bayleys Auckland. A 56 sq m café is leased for four years from September 2013 and a 41 sq m unit occupied by a mobile phone accessories outlet is on a four year lease form March 2014.
- A 700 sq m two-level office and warehouse unit with 14 car parks at 49 Sainsbury St, Auckland sold for $1,888,000 at a 7.4 per cent yield through Clint Barber and Andrew Beacham of Bayleys Auckland. It is leased to multinational Wika Instruments for six years from June 2014, with annual Consumer Price Index rent increases.
- A 734 sq m industrial building used as food production facility on 809 sq m corner site at 49 Carr Rd, Three Kings sold for $1,210,000 at a 7.4 per cent yield through Mike Adams and James Appleby of Bayleys Auckland. Leased to Lincoln Bakery for one year from February 2014 with a one month termination clause, it attracted close to 40 bids and was declared on the market at $1,110,000.
- A purpose built 772 sq m food grade manufacturing building on a 1750 sq m site at 30 Anvil Rd, Silverdale and occupied by pie maker Jesters Manufacturing Ltd on a four -year lease from June 2014, was sold for $1,180,000 at a 9.7 per cent yield by Rosemary Wakeman of Bayleys North Shore Commercial.
- A 510 sq m warehouse and office unit at 84-89 Hillside Avenue, Wairau Valley, with existing use rights for a fitness centre, sold with vacant possession for $581,000 through Trevor Duffin of Bayleys North Shore Commercial and John Algie of Bayleys Auckland.
- A 140 sq m takeaway and dairy premises producing $20,800 per annum net along with a 140 sq m vacant villa on a 1105 sq m underdeveloped commercially zoned site at 322 Hingaia Road, Karaka, was sold for $560,000throughMarty Roestenburg, Peter Migounoff and Tony Chaudhary of Bayleys Manukau Counties
A further eight properties were sold at Bayleys’ Total Property auctions in the lower North Island at a total value of $6.13 million.
This 80 sq m retail outlet at 3140 Great North Road, New Lynn, attracted the strongest bidding of the day to sell for $393,500.
The Howick Motor Lodge at 682 Pakuranga Rd, Howick was sold as freehold going concern for $2,350,000.
Two retail outlets in high profile position on either side of the entrance of the Royal Oak shopping mall sold as one lot for $750,000.