Firstly The Bad News

Published 18 April 2012

For an auction of new retail units, this one was unusual. Despite a quiet few years in the Auckland property market, retail offerings in small shopping centres have attracted strong bidding and sold at low yields.
But at Colliers International yesterday, the audience was small, bidding slow. 2 of the 6 freehold shops in the new Manurewa Retail Centre sold under the hammer after a struggle, 2 were passed in after getting top bids well short of the vendors’ expectations and the other 2 attracted no bids.

The 2 that did sell achieved yields of 7% & 7.4%. By comparison, the first 4 shops in the Merton East convenience centre in St Johns to go under the hammer at a Bayleys auction less than 3 weeks ago were sold at yields below 6% and another 2 went below 7%.

The Manurewa shops are in a development by Murdoch Newell Investments Ltd (John Murdoch father & son) and partners Roscommon Properties Ltd (Peter Walker), John Hooper (Lucina Investments Ltd), Mark Taylor (Karaka Accounting Services Ltd) & Gavin Webber (Webber Investments Ltd).

The property sits on a 3791m² site at 214 Great South Rd, Manurewa, and the shops range in size from just under 100m² up to 148m². 3 have 8-year leases, 2 have a 6-year lease and one shop is vacant. Agents were John Davies & Peter Kermode.

Auction results:

Unit 4, 148.1m², net rent $54,144/year, 8-year lease, no bids, passed in at vendor’s price of $675,000

Unit 6, El-Zed Halal Butchers, 104.2m², net rent $39,010, 8-year lease, top bid $350,000, passed in at vendor’s price of $500,000

Unit 6A, Tokyo Kitchen Sushi, 101.8m², net rent $38,160/year, 8-year lease, top bid $400,000, passed in at vendor’s price of $500,000

Unit 7, vacant, 96m², no bids, passed in at vendor’s price of $450,000

Unit 8, Chinese takeaways, 97.1m², net rent $38,610/year, 6-year lease, sold for $548,000 at 7% yield

Unit 9, Micro Computers & Electronics, 97.3m², next to new ASB Bank, net rent $37,620/year, 6-year lease, sold for $506,000 at 7.4% yield

Bob Dey report

Posted in News & Articles | 1 Reply

One thought on “Firstly The Bad News

  1. ‘Art’ is all very well, but it won’t pay the rent.There is a general beleif among many of theyounger people coming into the professionthat the secret of success is totally vested in thequality of their pictures.They look at the photographs applauded atthe National Print Awards and imagine theircreators make a living from them. But thosepictures are often ‘show’ rather than ‘dough’images. They are made to impress judges, otherphotographers and those few clients who arevisually sophisticated, and are not what thebusiness of people photography is all about.That business is predicated upon service.The person who realises this – who organiseshis procedures, himself and his time, andconducts his business efficiently and withgood humour – is the one who will survive.The product, provided it is reasonable andcompetitive in price, is largely irrelevant.Ian Hawthorne

Leave a Reply

Your email address will not be published. Required fields are marked *


You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>