Small retail sites in demand

By Colin Taylor

Among the properties to sell was the Swimgym in Howick.
Among the properties to sell was the Swimgym in Howick.

Keen interest from investors prompted early sales in Bayleys Greater Auckland auction.

A variety of commercial and industrial property, offered within Bayleys Real Estate's most recent Greater Auckland portfolio, attracted strong interest, with 11 properties selling before the auction, under the hammer, or post-auction, for a total of $9.2 million.

The highest price achieved was $1,750,000 for a 1980s industrial complex at 186 James Fletcher Drive, Otahuhu comprising 1630sq m of warehousing and 254sq m of offices on a 3146sq m site.

The property was sold to the Steam Brewing Company before auction by Geoff Graham and Don Partington of Bayleys Auckland, at a 9.1 per cent yield.

Also selling early was a 460sq m unit in The Terraces commercial and residential complex in Fencible Rd, Howick. The unit, which has a pool overlooked by a glassed-in observation area, was sold by Geoff Wyatt of Bayleys Manukau for $1,560,000 at an 8 per cent yield.

Swimgym Howick has an eight-year lease plus two four-year rights of renewal.

A third property to go before the auction was a 384sq m licensed sports bar and restaurant with 18 gaming machines in the Clyde shopping complex, in East Hamilton. It was sold for $1,060,800 at a 7.8 per cent yield through James Chan and Nicolas Ching of Bayleys Auckland. The tenant has been there since 1993 and has already exercised a right of renewal for a further 20 years.

Two other properties sold for exactly $1 million each, one of them a land-banking opportunity comprising 7.151ha of land at 195 Quarry Rd, Drury. The site has huge exposure to the Southern Motorway and attracted multiple bids from several parties before selling under the hammer through Mike Ashton and Peter Migounoff of Bayleys Counties.

At present a lifestyle property with a three-bedroom home, it is located in an area with a proposed zoning change from rural 1B to industrial to accommodate a business park.

Also selling for the same amount was a 141sq m villa on a 499sq m corner site at 201 Mt Eden Rd, which has existing rights for use as medical rooms. It sold post-auction through Clint Barber and Katrina Riedel, of Bayleys Auckland, at a 4.5 per cent yield.

Bayleys' commercial and industrial property auctioneer Richard Valintine says a feature of the auction was the strong interest being shown in smaller retail offerings.

Attracting particularly strong bidding was a 72sq m retail unit occupied by The Great Cafe in a high-profile corner position in the Sunnynook shopping centre. It sold for $570,000 at a 6.3 per cent yield, through Nicolas Ching and James Chan of Bayleys Auckland. Ching also sold a 83.5sq m unit in a retail convenience centre at 15 Karepiro Drive, Whangaparaoa, for $507,000 at a 7.8 per cent yield. It has been occupied by the Noodle Canteen since the complex was opened in 2007, with its eight-year lease running until November 2015.

A 192sq m retail building occupied by a pharmacy and restaurant on a 477sq m site in three titles at 713-717 Richardson Rd, Mount Roskill, sold for $579,000 at a 7.3 per cent yield, following marketing by Ching and Tony Chaudhary of Bayleys Manukau.

Chaudhary also joined forces with Geoff Wyatt in the sale with vacant possession of a 274sq m shop in heart of the Hunter's Corner shopping precinct in Papatoetoe for $695,000.

The premises at 161 Great South Rd underwent an extensive upgrade in 2009.

Selling before the Greater Auckland auction, for $145,000, was a 133sq m warehouse office unit with roller-door access.

It was marketed by James Valintine and Sunil Bhana, of Bayleys Auckland. Built in the 1990s, it comprises 51sq m of office, 34sq m mezzanine and 47sq m of warehousing.

In contrast, selling post-auction after being passed in at $375,000 was a 256sq m vacant office unit with three parking spaces and residential conversion potential on level six at 126 Vincent St, in Auckland's CBD. It was marketed by Rosemary Wakeman of Bayleys North Shore Commercial and Rachael Pittaway of Bayleys Auckland.

- NZ Herald

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