This two-building bulk retail complex at 2 & 6 Railway St West, Papakura sold for $6,175,000.
This two-building bulk retail complex at 2 & 6 Railway St West, Papakura sold for $6,175,000.
A Papakura bulk retail property selling for over $6 million and two suburban retail premises purchased at yields of less than five per cent were features of Bayleys' latest Total Property auction where 13 of 16 properties offered sold for a total of over $22 million.
John Church, Bayleys nationalcommercial director, says most of the properties put up for sale were either fully or partially leased. "The high clearance rate reflects the strong level of current demand for well tenanted properties as well as semi-vacant premises in good locations which offer the next owner some cash flow plus the potential to add value by leasing up untenanted space," Church says.
In one of the highest sale prices achieved in recent years at a Bayleys auction, a 3118 sq m, two-building bulk retail complex on a 6319 sq m site at 2 & 6 Railway St West, Papakura, was sold for $6,175,000 by Piyush Kumar and Peter Migounoff of Bayleys South Auckland.
Bidding on the property, which was put up for sale by a syndicate of investors, initially reached $5.4 million before it paused. After further discussions with the highest bidder, the offer was raised a further $775,000 and the property sold under the hammer at an 8.05 per cent yield. The retail complex, in two titles, was developed in the mid 2000s and is fully leased to seven tenants including Noel Leeming and a number of other national retailers. "In my view, it's the best, most modern retail complex in Papakura and is in a very strong central location with a Countdown Supermarket on one side and one of the Auckland's busiest train stations on the other," says Migounoff.
All three properties in Papakura put up for auction sold under the hammer.
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A character building in this retail strip at 352-354 Remuera Rd sold for $2,860,000.
Attracting close to 30 bids and selling for well over reserve for $1,815,000 was a 1123 sq m building at 79-85 Great South Rd, Papakura, on a 2185 sq m site with redevelopment potential under its Proposed Auckland Unitary Plan zoning of Metropolitan Centre.
The property, sold by Tony Chaudhary, Shane Snijder, Janak Darji and Kumar has been occupied as a medical centre by Counties Accident & Medical for nearly 20 years.. However its lease, currently producing net annual rental income of $196,577, is expiring next year with no right of renewal.
Also selling in central Papakura for $725,000 was a single level retail building on a 382 sq m corner site at 32 Broadway. It was sold by Chaudhary and Darji at a 9.1 per cent yield with three established tenancies encompassing two food businesses and a hairdresser.
Kumar says Papakura's strong projected future growth is attracting property investors. "The surrounding residential catchment area is a growing one which will expand even further as Papakura benefits from the Auckland Housing Accord's Special Housing Areas. There are thousands of residential sections planned all around Papakura and new dwellings are already underway. There are also large blocks of land with a Future Urban zoning under the Proposed Auckland Unitary Plan that are likely to be developed for residential use longer term which will further expand the customer base for Papakura retailers."
Two suburban retail properties sold at the Total Property auction for yields of less than five per cent. A two storey character building on a 339 sq m site at 352-354 Remuera Rd sold for $2,860,000 at a 4.6 per cent yield through Quinn Ngo, Owen Ding and James Chan of Bayleys international division.. It is occupied by the Phoenix Tree Garden Restaurant, a clothing store and travel agency.
A retail property at 404-406 Titirangi Rd, Titirangi, sold for well above capital valuation at $3.9 million.
Multiple bidders on the property started at $1..7 million and it was declared to be on the market by auctioneer Richard Valintine at $2.7 million with a further $160,000 added to the purchase price before it was eventually sold. Ngo says buyers were prepared to pay a premium for the property's very strong location near the corner with Victoria Avenue in a tightly held and sought after part of Remuera's main shopping strip. "Close by are a busy New World supermarket, 215 public car parks, five banks, a post office with over 1000 postal boxes and the Remuera library."
At the smaller end of the market, a 71 sq m dairy in a Mt Albert retail strip sold for $340,000 at a 4.9 per cent yield through James Appleby and William Coates of Bayleys West Auckland division. Located on a 307 sq m corner site at 88 Hendon Avenue, the dairy has a three year lease from April 2013 with one three-year right of renewal. Appleby says standalone properties in this price bracket are few and far between which was reflected in the very low yield.
Further west, a partially leased commercial property comprising two adjoining buildings in the heart of Titirangi Village attracted strong interest before being sold by Bayleys West Auckland commercial and industrial manager Mike Adams for $3.9 million - well in excess of a capital valuation of $3.4 million.. The combined 575 sq m premises on a high profile 2664 sq m site at 404-406 Titirangi Road has fourtenants producing net income of $133,570 plus 237 sq m of recently vacated ground floor space which was formerly occupied by a bank.
"The vacant tenancy is among the best located retail space in Titirangi Village and the property attracted strong interest from both investors looking for an add value opportunity and owner occupiers seeking a strong presence in the Titirangi town centre," says Adams.
This industrial property at 2 Crum Rd, New Lynn attracted 50 bids and sold for $1,275,000.
Adams, Coates and Appleby, in conjunction with Cameron Melhuish, were also involved in the sale of the most heavily bid property at the auction, a 400 sq m warehouse, showroom and office building on a 696 sq m corner site at 2 Crum Avenue, New Lynn which sold for $1,275,000. It is mostly vacant apart from a short term lease on first floor offices returning $14,000 net per annum. Bidding started at $800,000 and over 50 bids followed. It was declared on the market at $1,140,000 and 20 further increments of $10,000 and $5,000 took it through to its final selling price.
Other properties to sell at the Total Property auction included:
• A 450 sq m two-level building with an A Grade seismic rating, on a 303 sq m Mixed Use site at 20 Newton Road, Grey Lynn, sold for $1,375,000 through James Were and Scott Kirk. The ground floor workshop and showroom is leased to an auto interior business on a short term lease returning $33,642 net per annum. The vacant 225 sq m upper level is fitted out to high standard offering Residential use options. • A 556 sq mcorner site at 1 Shakespeare Rd, Milford on a high profile intersection, with a 290 sq m vacant building formerly used as fitness complex, sold for $1.3 million through Simon Aldridge and Michael Nees. • A 584 sq m warehouse, showroom and office building, split into two tenancies, on an 825 sq m corner site at 10 Walls Rd, Penrose,sold for $1,150,000 through James Valintine and James Hill. One occupied tenancy is producing $36,000 net per annum. • A 529 sq m industrial unit at 333East Tamaki Rd, East Tamaki, with a 362 sq m warehouse, 90 sq m office and 76 sq m mezzanine plus eight car parks, was sold vacant for $650,000 by Clint Barber and John Bolton. • An 87 sq m retail premises in Pacific Square retail complex at 792 Great South Rd, Manukau, with a 10 year lease to Vista Cafe from May 2006, was sold for $580,000 at an 8.4 per cent yield by Chaudhary, Darji and Amy Weng. • A 160 sq m two storey retail and office building on a 152 sq m site in an established shopping strip at 3102 Great North Rd, New Lynn, sold for $450,000 through Ngo and Katie Wu.
