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High clearance at Bayleys Auctions

116 Ocean View Road, Oneroa

Ten out of 11 Auckland properties showcased in Bayleys second Total Property portfolio for the year sold under the hammer. The highest price achieved was $5,810,000 for a property in Oneroa Village, Waiheke Island.

Located on a 1480 sq m site at 116 Ocean View Rd with a 441 sq m building, its largest tenant is Work and Income New Zealand with three street front retail tenants. There is a substantial amount of undeveloped land at the rear of the building that links to a rear service lane and provides 16 car parks.

The property attracted 26 bids before it was declared on the market by auctioneer George Yeoman at $5,000,000. Further bidding added another $810,000 to the final sale price which equated to a 3.46% yield.

Bayleys Waiheke agent Mana Tahapehi, who sold the property in conjunction with Mike Adams of Bayleys Auckland office, says it was purchased by an Auckland-based investor with Waiheke connections. “The property is very well located close to the centre of Oneroa village with a high exposure street front retail presence complemented by the office space behind it. The under-utilised rear part of the site adjoins a substantial public car park and has development potential.”

Also selling under the hammer for over $5 million at a low yield, in a Bayleys Tauranga auction, was a 1,670 sq m corner site at 145 Newton St, Mt Maunganui which houses a 302 sq m KFC restaurant and drive-through. It sold for $5,200,000 at a 3.50% yield, with a 12-year lease to NZX-listed Restaurant Brands until 2026 plus six six-rear rights of renewal.

“Strategically positioned on a high-profile roundabout intersection with multiple road frontages, this was a trophy investment offering in a tightly-held commercial precinct,” says Brendon Bradley who marketed the property with Lynn and Ryan Bradley. “It generated a high level of interest and competition which was reflected in the yield that was achieved.”

Low yields were also recorded on two North Shore retail properties marketed by Michael Nees, Ranjan Unka and Daniel Henderson.

A single-level 101 sq m premises on a 315 sq m under utilised site at 188 Kitchener Rd, Milford sold for $1,795,000 at a 1.94% yield. Located in the middle of a retail strip in Milford’s town centre opposite a new New World supermarket and the Milford Mall, it is occupied by two takeaway food businesses which have exercised the first of two two-year rights of renewal.

Another retail building with a floor area of 265 sq m located on a 541 sq m site at 43-47 Birkenhead Ave, Birkenhead sold for $1,300,000 at a 3.77% yield after being declared on the market at $1,150,000. It is occupied on varying lease terms by a superette and café at street level as well as a basement studio tenancy.

Michael Nees says both properties come with future development options with their Town Centre zoning permitting buildings up to 18m for the Milford property and 21 metres for the Birkenhead offering.

“Their rental rates are a little below market levels which means they also offer future income upside. The spirited bidding on both offerings reflects the investor confidence and demand that exists for smaller, add value retail properties which are on their own freehold land title.”

A 170sqm retail building, encompassing two unit titles, in a high-profile position in the Kumeu town centre was sold by Jarrod Qin, Beterly Pan and Tony Chaudhary for $1,201,000 at a 4.14% yield. The property was declared on the market at $1,050,000 and a further 35 bids added another $151,000 to the final sale price.

Its long-standing pharmacy tenant, in occupation since 2007, has signed a new five-year lease with further rights of renewal until 2037. Located next to Kumeu’s medical centre, the premises form part of a substantial strip shopping complex with plenty of customer parking and significant exposure to Main Rd.

Two other smaller retail units which had their auctions bought forward sold:

• A 78 sq m unit in the Corinthian Retail Centre in Albany with a new six-year lease to a food beverage tenant was sold by Steven Liu, Jane McKee and Eddie Zhong for $1,080,000 at a 4.44% yield.

• A 154 sq unit at 75 Porana Rd in the Wairau Valley marketed by Owen Ding, James Chan and Michael Nees sold for $900,000 at a 6.67% yield with a lease until April 2025 to a Chinese restaurant.

Three development sites also sold under the hammer:

• 6,124 sq m of Light Industry zoned land at 85 Tegal Rd, Drury marketed by Shane Snijder and James Hill sold for $3,450,000 inclusive of GST after being declared on the market at $2,650,000. The site has significant exposure to the State Highway 1 motorway.

• A 1,691 sq m rectangular shaped site, zoned Town Centre, at 10-16 King St Otahuhu with a 630 sq m commercial building was sold for $3,100,000 by Oscar Kuang and James Chan. The property is currently occupied by Westpac Bank with a final expiry on its lease of July this year.

• A 971sqm site zoned Neighbourhood Centre at 38 Red Beach Rd, Red Beach market by Steven Liu, Adam Cutis and Chris Blair was sold for $1,800,000 inclusive of GST. Resource consent has been granted for 13 apartments and one commercial unit to be developed.

Click here to see more Total Property sales snapshots.

145 Newton Street, Mt Maunganui

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