Lloyd Budd, Bayleys Auckland commercial and industrial director, says a total of 23 out of 27 properties auctioned in Auckland, Tauranga, Hamilton, Napier and Wellington sold at a total value of $45.3 million and a clearance rate of 85 per cent.
“This is one of the most successful first-up Total Property auctions we’ve staged in recent years and has confirmed what has been evident since the start of the year – that there continues to be very strong demand for a broad spectrum of commercial and industrial properties. Auctions remain a very effective way of ensuring you obtain maximum value in the current buoyant market.”
Budd says development sites are particularly sought after, owner occupiers and investors are competing vigorously for vacant industrial premises and yields continue to edge down for investment properties.
A substantial land holding with development potential in Karaka was one of two properties to sell for over $6 million at Auckland auctions. Bidding on the 2.4696-hectare freehold site with approximately 337 sq m of buildings at 6 Dyke Rd started at $3 million and over 30 bids later the hammer came down at $6.125 million.
The property currently accommodates the St Margarets café, bistro and events centre which is a popular wedding venue because of the site’s extensive manicured gardens, walkways and large pond. A lease which runs until 2023 is generating $61,000 gross a year with the next rent review due in April this year.
However, Bayleys Pukekohe agent Shane Snijder, who marketed the offering with Stefni Baigent, says the property’s real value lies in underlying land zonings which allow for future more intensive commercial and residential development.
“The site forms a central part of the Karaka North precinct earmarked for a new rural village. A portion of the property at the intersection with Linwood Rd is part of an area zoned Business - Local Centre which will provide for the local retail convenience and commercial services needs of the residential areas that will surround the village centre. The balance of the site is zoned Mixed Housing Suburban.”
Snjider says the purchaser intends to keep the property as it as it is for the time being.
A vacant 734sqm site at 14 and 18 McColl St, Newmarket was sold for $6.188 million, at $8,4130 per sq m, by Sarah Liu and Owen Ding.
Located on two freehold titles of 367 sq m each, the level site has a Metropolitan Centre zoning. This is the Auckland Unitary Plan’s most intensive zoning outside of the city centre and allows for high density commercial and/or residential development.
The property has a resource consent for 43 apartment units, two retail shops and 10 car parks. A terrace house concept development plan has also been drawn up for the site.
The mostly fiercely contested auction offering was an industrial property at 5 Parkhead Place, Albany which also provides a development opportunity. The 2,505 sq m site with a 649 sq m tenanted warehouse/showroom building was sold by Lauire Burt, Matt Mimmack and Mark Preston for $3.69 million at a 2.43 per cent yield.
The property attracted nearly 100 further bids from multiple parties after being declared on the market by auctioneer George Yeoman which added another $290,000 to the final sale price.
The building is currently leased to Cool Drive Ltd for six years with a three-year right of renewal. Burt says approximately 1,200 sq m of surplus land at the rear of the site zoned Light Industry is not part of this lease and provides the opportunity for the investor who purchased the offering to add considerable further value and income. “The property is situated in the heart of the North Harbour Industrial Estate which is a highly sought-after, low vacancy location with virtually no land available for development.”
Mimmack and Bayleys Commercial North Shore colleague Trevor Duffin also sold a 843 sq m warehouse building on a 1,011 sqm site at 16 Kaimahi Rd, Wairau Valley with vacant possession for $2.812 million. It was declared on the market at $2.660 million. Mimmack says the current occupiers have outgrown the premises and are relocating in August, with the investor purchaser looking to replace them with a new tenant
Three vacant East Tamaki industrial properties also attracted spirited bidding before selling under the hammer. Two adjoining units in a three-unit industrial complex at 59 Allens Rd, marketed by Nelson Raines and Tim Bull, sold to separate purchasers at a total value of $3.92 million. The site features drive around access and drive-through warehouses with a roller door at each end.
A 588 sq m end-unit with 468 sq m of clearspan warehousing and 120 sq m of office accommodation over two levels sold for $1,985,500. The neighbouring 579 sq m middle unit, with 476 sq m of warehousing and 103 sq m of offices, sold for $1.96 million.
A 300sqm industrial unit at 1 Lorien Place, East Tamaki with a high-profile street frontage and a large, secure yard was sold for $1.385 million by Nelson Raine, Tim Bull and George Hyslop. It comprises 240 sq m of clear span, high stud warehousing plus 60 sq m of refurbished, air-conditioned offices.
Four retail properties with food and beverage tenancies also sold, three at yields of below five per cent.
• A 141 sq m unit in the Cortinthian Retail Centre in Albany marketed by Seven Liu, Jane McKee and Eddie Zhong sold for $1,.336 million at a 4.19 per cent yield. Occupied by a Taiwanese Restaurant and milk tea bar on an eight-year lease, the auction of the unit was brought forward with a declared reserve of $1.19 million. A further 40 bids followed adding $146,000 to the final sale price.
• A 158 sq m restaurant plus 42sqm balcony in the Rosedale Retail Centre, Albany marketed by Steven Liu, Eddie Zhong and Terry Kim sold for $1.735 million at a 4.89 per cent yield. Trading as Fresh Bite, the tenant has been in operation since the opening of the second stage of the centre in 2016 and is on an eight-year lease
• A 229 sq m two storey building on a 124 sq m town centre site at 943 New North Rd, Mt Albert marketed by Ken Hu, Matt Lee and Oscar Kuang sold for $1.2 million at a 4.58 per cent yield The ground floor is occupied by Pizza Hut with a construction company occupying a basement level accessed off a rear lane.
• A 90 sq m unit in the recently completed Takanini Gateway retail centre at108 Great South Rd, marketed by Seven Liu, Piyush Kumar and Eddie Zhong sold for $880,000 at a 5.81 per cent yield. It has a new six-year lease to boutique cake shop Fale De Keke.