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While the sale of land and redevelopment sites has been significantly affected by a tighter funding market, there are still good land sales being made says Chris Bayley, Bayleys Real Estate's commercial and industrial general manager.
Bayley says while most investors are predominantly focused on cash flow and "land banking" activity has declined, it is still encouraging to see some development companies and businesses positioning themselves for the long term.
John Halstead of Bayleys Auckland and Marty Roestenburg of Bayleys Manukau have recently been involved in the sale of two development sites in Great South Rd, Takanini, to the same purchaser for close to $10 million.
One Takanini property containing 1.1296ha of land in six titles sold for $5.3 million. Comprising five separate buildings totalling 1831sq m with a large amount of yard space, it has holding income of close to $280,000 per annum through to December 2009.
Halstead then negotiated with the owners of an adjoining property on behalf of the purchaser. This property, comprising 8744sq m of land with around 3870sq m of buildings and a peppercorn rental, sold for $4.69 million.
Halstead says the purchaser is a well-established player in the property market and bought the sites with a view to redeveloping them.
Other recent sales to developers included a 1214sq m under-utilised commercially zoned site in Turua St, St Heliers, for $3.35 million at $2759 per square metre through Richard White of Bayleys Auckland.
In Maui St, Te Rapa, Hamilton, a 6675sq m industrial site sold for $1.54 million at $232 per square metre through Andrew Shaw, of Bayleys Waikato.
Owner occupiers also recently bought two development sites in West Auckland.
A 7006sq m block of land in Great North Rd, Henderson has been purchased for redevelopment once existing leases expire. The property contains 1762sq m of commercial buildings housing retail tenants producing net annual rental income of $223,535 and was sold for $2.88 million by Chris Upright and Craig Smith, of Bayleys Auckland.
Upright also sold a subdivided rear lot of 3510sq m in Rosebank Rd, Avondale, for $1 million at $285 per square metre. The site with views of the inner harbour has been purchased by a sail-making company expanding its home-based business.
In Lady Ruby Drive, East Tamaki, a level 2153sq m industrial site has sold for $900,000 at $418 per square metre through John Bolton and Katie Wu, Bayleys Manukau. An importing business intends to build new premises.
In Tauranga, 13 land sales have settled in Tauriko Business Park, being developed on the outskirts of the city. The industrial lots totalling 3.6ha sold to 12 parties at a total value of $9.2 million. Bayleys' Jim McKinlay says the average sale price was $260 per square metre, with purchasers a mixture of local business and investors.
