The auction started strongly and 10 of the first 11 land-and-building properties sold under the hammer. Headlining the day was a block of six retail tenancies on a high-profile corner at 66-88 Vincent St, Howick. The 571 sq m building on 660 sq m returned a combined annual income of $121,749 plus GST and sold for $2.4 million at a yield of 5.06 per cent.
The tenancy spread incorporates a dairy/Lotto shop, florist, cafe, butchery, pharmacy, hair salon and doctor's studio. The listing was marketed by Shane Snijder and Tony Chaudhary of Bayleys Manukau.
The demand for retail premises continued over to North Shore listings, where units at the Wairau Junction retail hub sold under the hammer.
A 98 sq m unit with fast food outlets Nando's and Pita Pit as tenants and returning an annual income of $73,000 sold for $1.05 million at a yield of 6.95 per cent. Nearby in the same hub, the 330 sq m Produce Planet food and grocery mini-market building returning $85,000 in annual rent sold for $1.26 million at a yield of 6.74 per cent.
The Wairau Junction portfolio was jointly marketed by James Chan and Matt Lee of Bayleys Central Auckland, and Damian Stephen of Bayleys North Shore.
The trend gained momentum through the sale of a retail unit in Epsom, where a high profile 228 sq m property, Unit F at 395 Manukau Rd, with a Bottle O liquor store as the sole tenant and returning annual income of $55,825 plus GST, was sold for $768,000. The property was marketed by Mark Pittaway of Bayleys Central Auckland and delivered a yield of 7.26 per cent.
A Mad Butcher outlet in Triangle Rd, Massey, returning $96,080 per annum plus GST was passed in at $1.050 million but sold hours later through post-auction negotiations. The 527 sq m building and four car parks is leased to the Mad Butcher chain until 2016 and was marketed by Damien Bullick of Bayleys Central Auckland.
Although single and dual tenancy retail offerings in Wairau Rd sold after strong bidding, a bigger retail block just a short distance away in Archers Rd reflected the market's appetite for stand-alone strata-title units.
The 774 sq m retail premises on 2030 sq m in Archers Rd contains a Japanese food outlet, Jetts Fitness gym, a bridal wear shop, and pet food retailer. The property was passed in after an opening vendor bid of $3 million.
And just a few hundred metres away in the opposite direction, a substantial 1680 sq m building with a variety of independent tenants returning an annual income of $187,775 plus GST was passed in after an opening vendor bid of $2.250 million.
The front portion of the building is occupied by bedroom furnishing retailer Bedstop, and six smaller retail and office spaces of 22-103 sq m are tenanted by a range of service and consultancy businesses.
A similar property in the heart of the South Auckland rural township of Tuakau mirrored those urban results. The 1615 sq m structure housing six independent tenancies and generating a total of $89,980 plus GST of rental income a year was passed in at $917,500.
Elsewhere in the sectors covered in the Greater Auckland auction, the land and buildings housing an ANZ branch in Great South Rd, Papatoetoe, and returning $140,483 plus GST a year, sold for $2.255 million. The property was marketed by Nick Bayley and Ben Bayley of the Bayleys Manukau office for a yield of 6.22 per cent.
ANZ has just signed a new six-year lease, with two further three-year rights of renewal. The building has a seismic assessment of 80 per cent of New Building Standard (NBS).
A 134 sq m home and work building with commercial use rights in Jervois Rd, Ponsonby, sold for $830,000. The vacant, rustic barn-style property clad in corrugated iron has a half-share of 511 sq m, and was sold by James Were and Scott Kirk of Bayleys Central Auckland.
Meanwhile, a vacant 645 sq m commercial premises with high-stud warehousing space in Archers Rd, Glenfield, sold for $1.130 million. The property, which requires modernising and refurbishing, was marketed by Trevor Duffin and Alex Strever of Bayleys North Shore.
Two industrial-class properties sold under the hammer. A 1913 sq m group of buildings on 1606 sq m in Dominion Rd, Mt Roskill, sold for $2.47 million at a yield of 4.53 per cent after marketing by Mike Adams and William Coates of Bayleys Central Auckland.
One of the tenants is a sheet metal firm with a light industry manufacturing operation.
Further south, land and buildings housing two automotive panel beating and paint businesses in Great South Rd, Manurewa, sold for $871,000 for a yield of 6.93 per cent. The two tenancies within the 490 sq m building on 1467 sq m of land generates a net rental return of $60,375 per annum and were marketed by Peter Migounoff and Shane Snijder of Bayleys Manukau.
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