Bidders more cautious at Bayleys auction

5:00 AM Saturday April 22, 2017 True Commercial

Following spirited bidding the property at 91 College Hill Road sold for $2,577,500. Photo / Supplied

A total of 20 properties have so far sold from Bayleys’ second Total Property commercial and industrial portfolio auction for the year at a total value of over $31 million.

Bayleys’ national commercial auctioneer Richard Valintine says more than 70 per cent of 28 offerings in Auckland, Hamilton, Wellington and Christchurch have sold with more post auction sales expected.

“That was a very satisfactory outcome given the changing market we are currently operating in. Bidders are more cautious and agents are having to work harder to satisfy due diligence requirements.”

Valintine says there were some significant sales of residential and mixed use zoned land as well as vacant buildings at the Auckland auction, with investment offerings selling at yields of 5-5.7 per cent.

The highest price achieved under the hammer was $6.1m for 7493sq m of land zoned Mixed Housing Suburban at 286 Cascades Rd, Botany Downs.

This was sold at $814 per sq m by Dave Stanley and Graeme Sun, Bayleys South Auckland in conjunction with Harry Cheng, Bayleys Remuera. The site, opposite Pakuranga golf course, currently contains one substantial dwelling and has 70m of frontage to Cascades Road.

Valintine says properties with a flexible Mixed Use zoning under the Auckland Unitary Plan also attracted strong interest.

A 374sq m freehold site at 2 Atkin Avenue, Mission Bay, with a 18m development height limit under its Mixed Use zoning, sold for $1,955,000 at $5,227 per sq m through Phil Haydock, Bayleys Auckland, Tony Chaudhary, Bayleys South Auckland and Angela Yang, Bayleys Mt Albert.

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The highest price achieved under the hammer was $6.M for 7493sq m of land, at 286 Cascades Rd, Botany Downs. Photo / Supplied

The property was declared on the market by Valintine at $1,725,000 and $230,000 worth of further bids, including a number of $5000 increases, followed before the hammer finally came down.

The site has a three-bedroom brick and tile house currently leased on a periodic residential tenancy.

A 946sq m corner site next to an AUT campus at 44 Akoranga Drive, Northcote, also zoned Mixed Use (with a 16.5m height limit) sold for $2.5m at $2642.70 per sq m through Michael Nees, Simon Aldridge and Dean Gilbert-Smith, Bayleys North Shore Commercial.

It has a 130sq m building which has been occupied by a physiotherapy practice.

The combination of a Mixed Use zoned site (although with a lower height limit of 13m), a character building and a strong location at the Ponsonby Rd end of College Hill produced some of the heaviest competition at the Auckland auction from bidders both in the room and on the phone.

Bidding on the 275sq m two-level character building on 337sq m of land with five on-site car parks at 91 College Hill started at $1.5m. The property was declared on the market at $2,350,000 with further spirited bidding pushing the final price to $2,577,500.

Originally constructed around 1890 and extensively remodelled and rebuilt in 1999 to accommodate an office tenant, the offering was sold with vacant possession through Nigel McNeill and Meredith Graham, Bayleys Auckland.

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A site at 2 Atkin Avenue, Mission Bay, sold for $1,955,000. Photo / Supplied

A 336sq m freehold site zoned Business — Mixed Use at 12 Fleet St, Eden Terrace, sold prior to the auction for $1,250,000 at $3720 per sq m through James Were and Scott Kirk, Bayleys Auckland. Bordering Basque Park, the property has two residential tenancies returning $52,260 per annum.

The longest sequence of bidding at the auction was for a 305sq m vacant warehouse and office building on a 342sq m Mixed Use zoned site at 18 George Terrace, Onehunga marketed by James Valintine and William Gubb, Bayleys Auckland. Bidding started at $600,000 and more than 50 bids followed before it eventually sold for $1,072,000

A 303sq m warehouse and office unit with six car parks at 7/38 Eaglehurst Rd, Ellerslie, also generated strong interest with the auctioning of this property brought forward after the vendors received an offer they were prepared to accept.

Bidding commenced at a declared reserve of $600,000 and competition from other interested parties resulted in a final sale price of $800,000. Marketed by Andrew Wallace and Cameron Melhuish, Bayleys Auckland, the property will provide annual holding income of $29,588 until March 2018.

The lowest yielding fully leased Auckland investment offering to sell was a 153sq m two-level building on a 240sq m site at 513 Sandringham Rd, Sandringham, which sold for $1,750,000 at a 5 per cent yield through Scott Kirk and Damien Bullick, Bayleys Auckland.

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The property tenanted by Gisborne Super Cheap Auto sold for $1,520,000, at an 8 per cent yield. Photo / Supplied

The ground floor has a four-year lease to Bayleys Real Estate with a refurbished three-bedroom flat above.

Other investment properties to sell included two units in the Wairau Junction retail complex at 170 Wairau Rd, Wairau Valley. A 112sq m unit sold for $990,000 at a 5.45 per cent yield through Paul Dixon, Bayleys Auckland, Tony Chaudhary, Bayleys South Auckland and Adam Curtis, Bayleys North Shore Commercial.

A Hell Pizza franchisee has been in occupation since 2010 and has just renewed its lease for three years.

Dixon joined forces with Janak Darji, Bayleys South Auckland and Michael Nees, Bayleys North Shore Commercial in the sale prior to auction of a 54sq m unit, with a 10-year lease to an Indian takeaway tenant from September 2013, for $454,000 at a 5.5 per cent yield.

Further south, a 1095sq m office and warehouse building on a 2209sq m site at 292 Great South Rd, Takanini, sold for $2,680,000 at a 5.7 per cent yield through Sunil Bhana, James Hill, Bayleys Auckland and Peter Migounoff, Bayleys South Auckland.

There is a long-term office lease to Bayleys Real Estate plus two warehouse tenants.

In the south east, a 134sq m first-floor office unit, with two parking spaces plus storage, at 2 Bishop Dunn Place, Botany South sold with vacant possession for $465,000.

Located in the Bishopsgate business centre, it was marketed by Geoff Wyatt and Dave Stanley, Bayleys South Auckland.

A Gisborne property also sold shortly after the Auckland auction. Located at 412 Gladstone Rd, the 670sq m bulk retail outlet, constructed in 2005 with 100 per cent NBS seismic rating, sold for $1,520,000 at an 8 per cent yield through Paul Garland, Colin McNab, Bayleys Hawke’s Bay.

A six-year lease from March 2017 to Super Cheap Auto includes 16 car parks.