Published 18 August 2011
Bob Dey Report
The first 2 properties offered at Bayleys’ commercial auction yesterday were sold on yields below 6% but the auction proved a mixture, with little interest in half the properties.
The highest offer for the day was $2.85 million for just under 60ha between State Highways 1 & 17 immediately south of Silverdale, taken to mortgagee auction by Hong Kong-based lender Asian Syndicate Finance Ltd after Auckland borrower Honk 2 Ltd (Andrew Tauber) defaulted. Hanover Finance Ltd (its loan book acquired in December 2009 by Allied Farmers Investments Ltd) sat behind Asian Syndicate Finance with a $23 million second mortgage [See link below to earlier story].
Not up for auction yesterday, but sold since it was taken to auction on 27 July, was the NZ Sports Complex property on Arrenway Drive, Albany.
Yesterday’s auction brought 4 sales under the hammer & 2 pre-auction. Another 5 properties were passed in and one, at Henderson, was withdrawn from sale. Auction results (plus Arrenway sale):
CBD – Queen St
239 Queen St, unit 2J, 43m² unit on Mid City shopping arcade level one, leased to fashion tenant with final expiry 2015, net rent $39,600/year, sold for $370,000 at a 10.7% yield (Millie Liang)
Royal Oak Mall, 691 Manukau Rd, unit K, freehold stratum foodcourt, passed on with no bid (Millie Liang)
Eden Quarter shopping centre, 292E Dominion Rd, 54m² Sharing Shed hairdressing salon,?6-year lease from 2007 with 1×6-year right of renewal, 2.5% rental increase every even year & review to market every odd year, current rent?$37,822/year, sold for $633,000 at a 5.98% yield (Nicolas Ching & Lisa Nielson)
Albany, 6 Arrenway Drive, 560m² NZ Sports Complex Ltd building on 1847m² site, part-tenanted, returning $41,000/year; ASB Bank Ltd, owed $2 million, appointed receivers to NZ Sports Complex in December 2009 and the company’s main tenant, North Shore Health Sauna, was wound up on 25 May after failing to pay the $80,000 it owed; passed in at $1.15 million at auction on 27 July, sold post-auction for $1.25 million (Mike Adams & Terry Kim)
Albany, 215 Rosedale Rd, unit 4, vacant 475m² warehouse & showroom, passed in (Nicolas Ching)
Silverdale, 1636 State Highway 17, 59.245ha adjoining Northern Motorway, passed in at $2.85 million (Robert Platt)
Henderson, 192 Universal Drive, unit 6B, 233m², Video Ezy on tenancy to 2015, rent $82,990 + gst/year, passed in at $1 million (Nicolas Ching)
Clendon,?439 Roscommon Rd, 2500m² business 5-zoned ex-service station site with about 840m² of buildings, in prime corner position next to Clendon shopping centre, sold pre-auction for $1.75 million or $700/m² (Katie Wu, John Bolton & Shane Snijder)
Howick, 87 Picton St, unit D, 285m² Malaysia Nyonya restaurant, 4-year lease with 4×4-year rights of renewal, rent $41,500 + gst/year, sold pre-auction for $450,000 at a 9.22% yield (Luke Carran, Mark Pittaway)
Manukau, 138 Plunket Drive, unit K, high-stud warehouse, office, dual access, rent $44,000/year to June 2012, passed in (Luke Carran & Peta Laery)
Manukau, 69 Wiri Station Rd, unit A, 92m² Wiri Station bakery & lunchbar, 4-year lease to 2014 with 2×4-year rights of renewal, rent $15,057 + gst/year, sold for $285,000 at a 5.28% yield (Nicolas Ching, Tony Chaudhary & Brice Clark)
Papatoetoe, 370 Great South Rd, 300m² building with 5 tenancies on a 481m² site at?‘School Corner’, a busy intersection at the southern end of Papatoetoe’s retail strip, rent for past year $71,866 + gst, tenants include VIP Curries, an Indian takeaway & restaurant on a 14-year lease expiring in 2020, a Chinese herbal clinic, a beauty therapy clinic, a hair salon and a kava store, sold for $950,000 at a 7.56% yield?(Brice Clark & Tony Chaudhary)