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.
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