Commercial Auction Results

Published 23 February 2012

An auction room battle between 2 of Auckland’s larger industrial land developers for a rare large site in Penrose ended yesterday with victory for James Kirkpatrick over John Sax.

Mr Kirkpatrick’s James Kirkpatrick bought the 6.2ha from Fulton Hogan Ltd for $6.6 million, at $106/m². The predominantly flat rectangular site in central Penrose has dual access via Harrison Rd, which links with the Ellerslie Panmure Highway & Leon Leicester Rd, a cul de sac extension of Leonard Rd, which runs off Penrose Rd. The property was formerly part of a quarry, but earthworks to fill the site were completed in 2006.

Bayleys Auckland’s James Hill, who marketed the property with Mike Houlker & David Gubb, said the business 4 zoning was designed for industrial locations which also abut residential areas and permitted a wide range of medium intensity, light industrial & commercial uses. Given the site has high-density housing on 3 sides, residential redevelopment might also be a possibility, though Mr Hill said this would require further investigation.

Mr Hill says Bayleys Research’s recently completed inaugural survey of greater Auckland’s main industrial areas showed Penrose had the region’s lowest vacancy rate, at just over 3%: “This augurs well for future demand for business premises in a suburb which has always been popular with tenants because of its central location.”

Auction results:

CBD, Victoria Quarter

15 Graham St, 322m² of premium character office space with high standard of fitout over 2 levels, plus 15m² private outdoor courtyard & 4 parking spaces, part of a complex  of 3 of a similar size & style and has a third share of 1045m² of land, sold vacant for $1.25 million (Lisa Nielson & Mike Adams)

Isthmus east

Newmarket, 3D Short St, unit A, 90m² unit among a variety of retail premises on the ground floor of the Quest serviced apartment building, occupied by Heizo Japanese tepanyaki restaurant on a lease to March 2017 with 2-yearly rent reviews & a 6-year right of renewal, sold for $600,000 at a 7.6% yield on net rent of $45,329/year (Henry Thompson, Stuart  Bode & Clint Barber)

Penrose, 129 Leonard Rd, undeveloped 6.203ha zoned business 4, formerly part of a quarry with earthworks to fill the site completed in 2006, with resource consent for subdivision into 7 industrial lots, subdivision plans are for lots ranging from 5280m²-1.0147ha, sold for $6.6 million or $106/m² (Mike Houlker, James Hill & David Gubb)

Isthmus west

Mt Eden, 879-881 Mt Eden Rd, 2 separate shops with residential accommodation at the rear, 280m² of buildings dating back to the 1920s on a 539m² site, net rent $59,183/year, sold for $800,000 at a 7.4% yield (Nicolas Ching, Bayleys Auckland)

Onehunga, 185 Onehunga Mall, 400m²  character building on 347m² site with 7 parking spaces, opposite the Dressmart shopping centre, 2 ground-floor retail tenancies occupied by Urban Clothing and Roast Dinners with an office tenancy upstairs, net rent $77,750/year, sold for $950,000 at an 8.2% yield (Scott Kirk, Cameron Melhuish & Tony Chaudhary)

Onehunga, 11 Mountjoy Place, 1010m² industrial complex built in the 1970s on a 1304m² site with secure yard,  It comprises 719m² of clearspan warehousing with a seven metre stud, 184m² of office, showroom and amenities space over two levels and 107m² of mezzanine storage, sold vacant for $830,000 (Lisa Nielson, James Hill, Bayleys Auckland)

North-west

New Lynn, 3029 Great North Rd, 200m² retail outlet occupied by The Homes Essential store, part of a modern 4-unit complex opposite Lynmall Shopping Centre, producing net rent of $80,867/year with a 6-year lease in place from July 2008, with one 6-year right of renewal, sold for $900,000 at a 9% yield (Nicolas Ching & James Chan)

South

Highland Park, 10 Dun Robin Place, 100m² Pizza Hut outlet in the Highland Park Shopping Centre, longstanding tenant Restaurant Brands Properties Ltd exercised a 3-year right of renewal in 2010, with further rights of renewal until 2021, net rent $40,000/year, sold for $530,000 at a 7.5% yield (Tony Chaudhary, Bayleys Manukau)

Manukau, 53 Cavendish Drive, unit 7, 512m² 2-level unit in 3 separate tenancies on 3-to-6-year leases each returning $25,000/year – a liquor store and a pre-packed food preparation tenancy on the ground floor, with an Indian restaurant above – sold for $845,000 at an 8.9% yield (Tony Chaudhary, Bayleys Manukau)

Pakuranga, 30A Ben Lomond Crescent, 935m² warehouse; Action Indoor Sports Stadium, which operates 2 playing courts for indoor cricket & netball, has occupied the building for 14 years and last year exercised a 4-year right of renewal with one further  4-year right to renew; net rent $79,830, sold for $805,000 at a 9.9 % yield (Shane Snijder, Bayleys Counties; John Bolton, Katie Wu, Bayleys Manukau)

Papakura, 205-207 Great South Rd, 627m² building on 329m² site, with the recently completed  Papakura library & museum on one side and the ANZ Bank on the other; anchor tenant Urban Pharmacy has been an occupant since the building was constructed in 1968; another long-established occupant, law firm Rice Craig, is the next largest tenant and there are 3 smaller tenants plus a vacant 90m² office tenancy; net rent $75,827/year, sold for $955,000 at a 7.9% yield (Cameron Melhuish, Alan Haydock & Shane Snijder)

Papakura, 69-71 O’Shannessey St, 348m² Papakura Family Store on a 460m² site in 2 titles, the Salvation Army has been a longstanding tenant in the building and recently renewed its lease, which is returning $58,000/year, for another 3 years, with 3 further 3-year rights of renewal , sold for $725,000 at an 8% yield (Dave Stanley & Mike Ashton).

Bob Dey Report

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