City auction draws hot bidding action
Two vacant buildings and a car yard site attracted the strongest bidding at a Bayleys Total Property auction in Auckland, and several of the properties sold for well over their reserve.
Eleven commercial and industrial properties sold at, before or shortly after the auction at a total value of just under $14 million. Negotiations were continuing on other properties that were passed in.
Hottest competition of the day was for a 229sq m mixed use building on a 248sq m site at 6 Cargill St in Eden Tce which attracted more than 70 bids before selling with vacant possession for $1,220,000.
The building, which was marketed by Cameron Melhuish of Bayleys Auckland, has 160sq m of ground-floor warehouse and office space with an upstairs residence of 69sq m, including deck, upstairs.
Bidding on the property, which had a capital valuation of $580,000, started at $650,000 and with five bidders in the auction room and two on the phone rapidly progressed through to $870,000 when it was declared to be "on the market" by auctioneer Richard Valintine.
A sequence of mostly $5000 increases added a further $350,000 to the sale price before it was knocked down to a purchaser intending to occupy the premises.
Melhuish said good-quality vacant city fringe premises were in short supply and mixed use properties offering live and work opportunities were particularly sought.
"The property generated huge interest and most of the bidders were aspiring owner-occupiers looking to join an increasing trend towards living and working close to Auckland's central business district."
Attracting close to 60 bids was a 440sq m industrial building on an 814sq m site at 11 Parity Place, Wairau Valley, which sold with vacant possession for $810,000 through Alex Strever and Trevor Duffin of Bayleys North Shore Commercial.
Bidding started at $450,000 and bidders pushed the price up to $800,000. Five $1000 increases took the bidding to $805,000 before a final $5000 increase secured the property.
The highest price of the day was $2,250,000, paid for a 787sq m car yard site with a 205sq m showroom at 458 Great South Rd, Greenlane.
Winger Motors, which has been operating a Kia dealership on the site since 2011, had already renewed its lease for a further three years from next month.
The property was declared on the market at $2,110,000 and more than 20 further bids totalling $140,000 followed before it sold at a 5.3 per cent yield through Mike Adams, William Coates, Quinn Ngo and James Chan of Bayleys Auckland.
Other properties to sell included:
A retail building and a three-bedroom house on a 1540sq m site in two titles on State Highway 1 in central Warkworth sold for $1,270,000 at a 7.2 per cent yield through Damian Stephen and Michael Block of Bayleys North Shore Commercial and Duncan Napier of Bayleys Warkworth.. The premises at 199-201 Rodney St are occupied by a Four Square superette and a Kiwibank/NZ Post shop.
A 325sq m BNZ outlet opposite the LynnMall shopping centre at 3029A Great North Rd, New Lynn, fetched $1,950,000 at a 7.3 per cent yield through Jim McKinlay of Bayleys Tauranga and Mike Adams of Bayleys Auckland. BNZ has occupied the site since 2002 and signed a new eight-year lease in 2011.
A 452sq m mostly vacant two-level building on a 452sq m site on the corner of Dominion Rd and Mt Albert Rd sold for $1.4 million through Ranjan Unka of Bayleys North Shore Commercial and Scott Kirk and James Were, Bayleys Auckland.
A 344sq m two-level building, comprising a 233sq m workshop and 110sq m of office space, on a 304sq m site at 18 Newton Rd, Grey Lynn, sold for $1,002,000 at a 6 per cent yield through Cameron Melhuish and Alan Haydock of Bayleys Auckland. It has a new six-year lease to an automatic transmission service company with annual 3 per cent rental increases.
A 540sq m modern tilt slab industrial building with high stud warehouse and two levels of office at 30 Vestey Drive, Mt Wellington sold for $1,275,000 at a 7.2 per cent yield through James Hill, Sunil Bhana and Mike Houlker of Bayleys Auckland. Tronics NZ has occupied the site for six years and has renewed for another five.
A 916sq m second-hand car yard site at 2 Great South Rd, Papatoetoe, with the ground floor of a large two-level house converted to provide a mechanical workshop, sold with vacant possession for $790,000, or $862 a square metre, through Tony Chaudhary and Janak Darji, Bayleys Manukau.
Unit 8, 2 Bishop Dunn Place, Botany South, comprising a 210sq m commercial unit in Bishopsgate Business Centre sold for $670,000 at a 6.2 per cent yield also through Chaudhary and Darji. A veterinary nursing education centre renewed its lease in April for a further three years.
A 295sq m tilt slab warehouse and office unit with four car parks at 4 Kellow Place, Wiri, sold for $450,000 at an 8.4 per cent yield through Clint Barber, Bayleys Auckland, and Simon Andrews, Bayleys Manukau. It has a new three-year lease with three rights of renewal to Chivalry Training Providers.