Eight properties were sold in the Wairau Junction retail complex.
Eight properties in the Wairau Junction retail complex on Auckland's North Shore were among more than $23 million of sales made at Bayleys' last Total Property auction in Auckland for this year.
The units, in the renovated suburban retail complex on the corner of Wairau and View roads, in the Wairau Valley, were sold individually at prices varying from $360,000 to just over $3 million.
Wairau Junction was purchased by Midpoint Investments last year and has since undergone significant refurbishment, including the installation of new sprinkler systems and facades on all tenancies as well as some interior renovations.
The redevelopment has attracted a number of new tenants and has also enabled long-term leases to be renegotiated with existing tenants.
The units put up for sale all had new five- to 12-year leases with rights of renewal, and were marketed by James Chan and Clint Barber of Bayleys Auckland along with Damian Stephen of Bayleys North Shore Commercial.
Seven of the units sold at yields of 6 to 6.8 per cent, with the reconfigured and renovated 810sq m premises of longstanding anchor tenant Valentines Restaurant selling shortly after auction for $3,008,880 at a 7.6 per cent yield. The buffet restaurant has a 12-year lease with three-yearly rent reviews to the consumer price index (CPI).
Other Wairau Junction units sold at auction were:
Unit 2 - occupied by The Coffee Club, a 175sq m cafe with a 10-year lease and two-yearly rent reviews to CPI plus 2 per cent, that sold for $1.28 million at a 6.6 per cent yield.
Unit 4 - 115sq m leased to a Pita Pit food outlet with a 10-year lease and annual rent reviews to CPI plus 1 per cent, which sold for $850,000 at a 6.8 per cent yield.
Unit 6 - rented by the Sushi Factory with a 96sq m shop, with a six-year lease and two-yearly rent reviews to CPI plus 2 per cent, that sold for $500,000 at a 6 per cent yield.
Unit 10 - a 59sq m outlet leased by Motor Trade Finance, a national vehicle financing company, that sold for $555,000 at a 6.8 per cent yield on a five-year lease with two-yearly rent reviews to market or CPI.
Unit 11 - a 98sq m outlet leased to Pizza Hut, which sold for $690,000 at a 6.2 per cent yield on a six-year lease to Restaurant Brands, with three-yearly rent reviews to market.
Unit 20 - a 35sq m property rented to computer, printer and accessories shop City Wide Tech that sold for $360,000 at a 6.5 per cent yield on a 10-year lease, with two-yearly rent reviews to market or CPI.
Unit 21 - of 107sq m occupied by a 60-store Australasian pool and spa specialist, Swimart, which sold for $735,000 at a 6.75 per cent yield on a five-year lease with two-yearly rent reviews to CPI.
The Wairau Junction units were among 17 properties that sold at the Auckland Total Property auction.
"A number of other shops are still available for purchase at Wairau Junction at prices from around $400,000 upwards," Chan says. "These include units occupied by well-known national and international brands like Nando's, Hell Pizza and Jesters Pies."
The most sought-after property of the day was a 315sq m retail building on an 832sq m site at 113 Favona Rd, Mangere, that attracted a phenomenal 118 bids before it was sold for $1.615 million at a 3.2 per cent yield by John Bolton, Katie Wu and Tony Chaudhary of Bayleys Manukau.
The property was declared "on the market" by auctioneer Richard Valintine at just over $1 million but fierce bidding pushed the price up a further $600,000 before the hammer finally came down.
The building has three tenancies comprising a superette, a takeaway outlet and a liquor shop with combined net income of $52,064 per annum. It was the first time the property had been put up for sale since it was built more than 40 years ago, with undeveloped land at the rear.
Other sites to sell at the Auckland Total Property auction were:
Two adjoining buildings on the corner of Walton and Robert Sts, Whangarei, comprising a 1005sq m recently refurbished ASB regional banking centre and a 275sq m workshop that sold for $2.6 million at an 8.1 per cent yield through Ross Blomfield of Bayleys Whangarei. The ASB has been in occupation since 1988 and provides the bulk of the property's total rental income of $210,000 per annum.
A 581sq m former Bond & Bond bulk-retail unit, refurbished and reconfigured for a Jetts Fitness 24-hour centre in the Lincoln Centre at 111-115 Lincoln Rd, Henderson, which sold for $1.55 million at an 8.1 per cent yield through Chan, Matthew Lee and Quinn Ngo of Bayleys Auckland.
A two-level, mixed-use building at 132 West Tamaki Rd, Glen Innes, comprising a long-established 73sq m doctor's surgery and two recently refurbished vacant flats on a 791sq m Residential 6A-zoned site, that sold for $1.5 million through Cameron Melhuish of Bayleys Auckland. The doctor's surgery is producing $38,922 per annum net with total estimated potential income of $80,000 to $85,000 per annum.
A 494sq m mixed-use unit at 49 Sainsbury Rd, St Lukes, sold for $1.2 million at an 8.75 per cent yield through Clint Barber and Andrew Beacham of Bayleys Auckland. The unit, which has two levels of showroom and office space plus a high-stud warehouse with roller-door access, has an eight-year lease from 2009 to Signature Marketing.
A 689sq m standalone renovated industrial building on a 809sq m Business 4 site at 273 Mt Smart Rd, Penrose, leased until February 2014, sold for $980,000 at a 6.7 per cent yield through Valintine and James Hill of Bayleys Auckland.
A 133sq m ground-floor unit leased to a long-established chiropractor tenant in a medical-orientated complex at 301 Botany Rd, Botany, sold for $410,000 at a 7.8 per cent yield through Michael Block of Bayleys North Shore Commercial and Geoff Wyatt of Bayleys Manukau.
A 75sq m unit with two carparks at 1484 Dominion Rd in the Mt Roskill Shopping Centre, which sold for $360,000 at a 5.6 per cent yield through Ed Donald of Bayleys Auckland and Tony Chaudhary of Bayleys Manukau. It has a lease to an LJ Hooker franchisee, recently renewed for six years, with vacant storage area at rear.