Strong competition brought some good prices and yields at Bayleys’ auctions.
Retail properties were again flavour of the day at Bayleys’ Total Property offering which saw eight of the 12 properties sold under the hammer for a total of just over $10 million.
Most attracted strong bidding competition with the tenanted investment properties selling at a wide range of yields from 5 per cent to nearly 12 per cent.
First up were two adjoining Ponsonby retail units totalling 122sq m in the Three Lamps shopping centre, occupied by New Zealand’s largest specialist children’s footwear store, which sold as one for $1,483,000.
Bidding on the property, Units J & K at 1 Jervois Rd, started at $850,000, with multiple parties competing vigorously before it was declared on the market by auctioneer Richard Valintine at $1,380,000.
More than $100,000 of further bids followed, with two investors fighting it out at the end in $1000 increments before the property was eventually sold at a 5.05 per cent yield.
It was marketed by James Chan and Quinn Ngo of Bayleys Auckland in conjunction with Tony Chaudhary of Bayleys Manukau.
The premises were sold with an eight-year lease from February 2012 to Future Feet, which has been based there since 1993. the present net annual rental is $75,000 with annual rental increases of 3 per cent. Chan says the units’ location in a prime corner position at the intersection of Ponsonby Rd, College Hill Rd, St Marys Rd and Jervois Rd was a major factor in the strong interest in the property
The Future Feet shop is part of a three-level commercial area that includes a basement car park, ground-level retail and first-floor offices.
Another retail unit, occupied by the Dorothy Butler Children’s Bookshop in the same area but further along Jervois Rd sold at a Bayleys’ auction earlier this year for $1,080,000 at a 6.6 per cent yield.
The highest price achieved at the latest Bayleys’ Total Property auction was $3,750,000 for a 4730sq m car yard site at 579 Great South Rd, Manukau, with 1326sq m of showroom and service buildings, sold by Shane Snijder of Bayleys Counties and John Bolton and Tony Chaudhary of Bayleys Manukau.
It attracted strong interest and was declared on the market at $3.6 million before eventually selling at a 7.2 per cent yield. The property has a 10-year lease from April 2012 to Manukau Toyota Commercial.
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