Big crowds and low yields at auction

Two retail outlets in a high-profile position on either side of the entrance of the Royal Oak shopping mall sold as one lot for $750,000.

A variety of commercial offerings went under the hammer at the Total Property sale in Auckland

Ten properties sold at Bayleys' latest Total Property auction in Auckland fetched a total value of $13.792 million, with low yields once again being the order of the day for the most sought-after offerings.

A large crowd in attendance for the start of the auction saw the first property, a 70sq m century-old retail building on a 366sq m site at 293-297 Ponsonby Rd, Ponsonby, sell for the highest price of the day of $2.82 million. Bidding started at $1.75 million and it was sold at a 5.3 per cent yield by Cameron Melhuish, Sunil Bhana and James Chan of Bayleys Auckland on behalf of a vendor who had owned it for nearly half a century.

Originally built about 1913, the building has undergone various renovations and additions over the years and currently provides three single-level retail tenancies at the popular College Hill end of Ponsonby Rd. It is occupied by Price Wise, Sierra Cafe and Harvey World Travel with two of the tenants on final renewals of leases that started in 1997 and 2002.

Next under the hammer was a much smaller property, 3140 Great North Rd, New Lynn, which attracted the strongest bidding of the day. Comprising a 80sq m retail outlet on a 150sq m site, next to a large site on which a new Bunnings hardware store is being developed, it sold for $393,500 at a 4 per cent yield on its $15,800 per annum lease to Instant Cash in a Flash, which has a final expiry of May 2018.

Marketed by Mike Adams and Paul Dixon of Bayleys Auckland, the property attracted more than 70 bids, starting at $150,000. It was declared "on the market" at $310,000 followed by 52 bids before finally selling.

Two other properties that sold for over $2 million also attracted solid bidding. The Howick Motor Lodge, comprising 10 units plus a four-bedroom manager's home and office on a 1677sq m site at 682 Pakuranga Rd, Howick, sold as a freehold going concern for $2.35 million through Shiona Dyer and Paul Dixon, of Bayleys Auckland, and Kevin Barber of Bayleys Howick. In Auckland's CBD, a 250sq m penthouse floor, with live-and-work options, at 152 Quay St, sold for $2.06 million through Gary and Ben Wallace of Bayleys Auckland.

Other properties to sell at the auction included:

Two retail units in a high-profile position on opposite sides of the entrance to the Royal Oak shopping mall sold as one lot for $750,000 at a 7.2 per cent yield through Matt Lee, James Chan and Owen Ding of Bayleys Auckland. A 56sq m cafe is leased for four years from September 2013 and a 41sq m unit occupied by a cellphone accessories outlet is on a four-year lease from last March.

A 700sq m two-level office and warehouse unit with 14 car parks at 49 Sainsbury St, Auckland sold for $1.89 million at a 7.4 per cent yield through Clint Barber and Andrew Beacham of Bayleys Auckland. It is leased to multinational Wika Instruments for six years from last June, with annual CPI rent rises.

A 734sq m industrial building used as food production facility on 809sq m corner site at 49 Carr Rd, Three Kings, sold for $1.21 million at a 7.4 per cent yield through Mike Adams and James Appleby of Bayleys Auckland. Leased to Lincoln Bakery for one year from last February with a one-month termination clause, it drew close to 40 bids and was declared on the market at $1,110,000.

A purpose-built 772sq m food grade manufacturing building on a 1750sq m site at 30 Anvil Rd, Silverdale, and occupied by pie-maker Jesters Manufacturing on a four-year lease from last June was sold for $1.18 million at a 9.7 per cent yield by Rosemary Wakeman of Bayleys North Shore Commercial.

A 510sq m warehouse and office unit at 84-89 Hillside Ave, Wairau Valley, with existing-use rights for a fitness centre, sold with vacant possession for $581,000 through Trevor Duffin of Bayleys North Shore Commercial and John Algie of Bayleys Auckland.

A 140sq m takeaway and dairy premises producing $20,800 per annum net along with a 140sq m vacant villa on a 1105sq m underdeveloped commercially zoned site at 322 Hingaia Road, Karaka, was sold for $560,000 through Marty Roestenburg, Peter Migounoff and Tony Chaudhary of Bayleys Manukau Counties.A further eight properties were sold at Bayleys' Total Property auctions in the lower North Island at a total value of $6.13 million.