Mixed Bag For Commercial

A very mixed bag of results at this auction, but understandable as the offering were mediocre  to say the least.  At least 9 sold and some more will no doubt sell soon.

I think that good commercial properties are still tightly held, or sell quietly. All the more reason why investors have to be up to date as well as clued up.


Published 4 May 2012
Bayleys’ Great Auckland commercial auction went in fits & starts on Wednesday, ending with 4 sales under the hammer and another 5 sold leading up to auction day. Auction results:

Opposite Quay Park, 121 Beach Rd, full-floor penthouse:
Features: 136m², 2 secure & covered parking spaces, mixed-use zoning
Outcome: passed in at $475,000

Otahuhu, 20 Weka St:
Features: 5214m², 3 separate buildings, 10 tenants, dual access
Income: $341,398 + gst/year
Outcome: Top independent bid $2 million, passed in at vendor’s bid of $2.7 million

Parnell, 1 Tika St:
Features: 247m² floor, 4 secure parking spaces, zoned mixed use
Income: vacant possession
Outcome: no bid
Grey Lynn, 422 Richmond Rd, unit A:
Features: 179m², ground-floor retail, first-floor office or apartment with separate access in new building in West Lynn shops
Income: retail rent $57,459 + gst/year, first floor vacant
Outcome: passed in at $950,000

Mt Eden, 201 Mt Eden Rd:
Features: 499m² freehold land, corner villa with existing-use rights for use as medical rooms
Outcome: passed in at $990,000
Mt Roskill, 713-717 Richardson Rd:
Features: 192m² on 477m² site in 3 titles, retail premises occupied by a pharmacy & restaurant on leases expiring in 2012 & 2013
Income: net $42,460/year
Outcome: sold just before auction for $579,000 at a 7.3% yield

Otahuhu, 186 James Fletcher Drive:
Features: 1630m² warehouse, 254m² office on 3146m² 1980s-built industrial complex occupied by Steam Brewing Co Ltd for 15 years, halfway through 6-year lease with next review March 2013,
Income: $160,000 + gst/year
Outcome: sold prior for $1.75 million at a 9.1% yield

Ponsonby, 68C & D Ponsonby Rd:
Features: 132m², next to the proposed Contdown supermarket on the ex-Soho Square site
Income: net rent $78,653 + gst/year from 6-year lease to March 2016, 2 unit titles could be leased separately
Outcome: passed in at $950,000

Sunnynook, 120 Sunnynook Rd, unit G:
Features: 72m², in high-profile corner position in the Sunnynook Shopping Centre, occupied by The Great Café, which has been in the centre since 2002
Income: net rent $36,000/year, current lease runs until 2015 with 1×6-year right of renewal, and 2-yearly rent reviews
Outcome: sold for $570,000 at a 6.3% yield

Drury, 195 Quarry Rd:
Features: 7.151ha site between Southern Motorway & Quarry Rd, and between Ramarama & Drury; currently a lifestyle property with 3-bedroom home but located in an area with a proposed change from a rural 1B zoning to industrial; Quarry Rd is one of the preferred roads that would serve the proposed Stevenson’s Quarry Drury South business park
Outcome: sold for $1 million

Papatoetoe, 161 Great South Rd:
Features: 274m² retail premises in heart of Hunter’s Corner shopping precinct, underwent extensive upgrade in 2009 including new shop frontages, new roof, internal walls, wiring, ceiling & lighting
Outcome: sold with vacant possession for $695,000

Papatoetoe, 503 Great South Rd:
Features: 360m² building on 809m² site, occupied by South Auckland Physio Sports & Rehab for 25 years
Income: $65,000/year + opex + gst on new 6-year lease with rights of renewal
Outcome: no bid

126 Vincent St, unit 6A:
Features: 256m² office, storage room, 3 parking spaces
Outcome: passed in at $375,000, sold post-auction
Bob Dey report

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