Recent Deals for Wednesday June 20

8:25 PM Tuesday June 19, 2018 True Commercial’s Recent Deals

This Auckland high-rise office building at 22 Fanshawe St sold for $50m. Photo / Colin Taylor

GroupM Fanshawe St tower

The GroupM office building at 22 Fanshawe St, in the Auckland CBD, has been sold to Conrad Properties Group for $50m, in a deal brokered by Harold McCracken of Savills. 

The 12-level, 7796sq m building, was sold off-market by Fisher Funds Management Ltd. Conrad Properties intends to hold it as a long-term, flagship investment outside its residential development portfolio. 

The property has an A-grade seismic rating and zoning would permit addition of up to five levels, on top of the existing 12. 

In 2015, GroupM Ltd signed a five-year lease for 1200sq m of the building. The company also has naming and signage rights to the building, which was previously known as Tower House. 

Other tenants include Assurity, Equifax, Push Marketing, Robert Walters and a ground floor cafe. Three levels in the building are currently vacant.

The building also includes 51 basement car parks with a further 15 parks at ground level, representing a good car parking ratio which was a further attraction for the purchaser, says McCracken.

Eden Terrace Fresh sale  

A two-storey 882sq m 1980’s unit in uptown Eden Terrace at 6-10 Nikau St, has been sold by previous owners Fresh Communications to a new owner occupier for $4.28m. The deal was brokered by Kris Ongley and Jonathan Lynch of Colliers International Investment Sales division.

Papatoetoe Allenby Park hotel

The 68-unit Allenby Park hotel complex at 477 Great South Rd, Papatoetoe, with in-house restaurant, bar and a standalone two-level conference facility, has been sold as a freehold going concern for $16m by Paul Dixon, Bayleys’ business, tourism & leisure team leader, and Janak Darji and Tony Chaudhary, Bayleys South Auckland. The new owner has indicated an intention to continue operating the recently upgraded accommodation complex, though longer term the large 8345sq m site, zoned Mixed Housing Suburban and with only around 3500 sq m building coverage, may be further development.

Countdown Blockhouse Bay 

The Blockhouse Bay Countdown of 19-29 Donovan St has sold to a private investor by tender for $9.3m, representing a yield of 5.17 per cent. The property is a 7115sq m, high profile corner site and the building itself has a floor area of 2108sq m. The deal was brokered by Shoneet Chand, Josh Coburn, Matt Prentice and Matt Barnes of Colliers.

New Lynn car yard 

A narrow 956sq m car yard site close to Lynnmall shopping centre, at 3026 Great North Rd, New Lynn, with dual access from Veronica St, sold post-auction for $1,305,000 through Kate Kirby, Stephen Scott, Bayleys Auckland and Tony Chaudhary & Amy Weng, Bayleys South Auckland. Occupied by Just Prestige Cars, it is generating net annual holding income of $48,000.

Takanini workshop

An 184sq m workshop built in 2000 on a 1159sq m security fenced site zoned Light Industry at 22 Oakleigh Ave, Takanini, has sold with vacant possession at auction for $941,000. The property marketed by Rod Grieve and Peter Migounoff, Bayleys South Auckland generated 84 bids from seven bidders. It has a net rental estimate of $40,000-$48,000 per annum. 

Albany Bush Rd units

Two adjoining office units at 100 Bush Rd, Albany totalling 412sq m with 12 car parks have sold for $1.8m at a 5.9 per cent yield through Dean Gilbert-Smith & Laurie Burt, Bayleys North Shore Commercial. Engineering Design Consultants Limited, in occupation since 2011, has recently extended their lease over both units until 2023.

Two Penrose buildings

Two separate workshop buildings totalling 863sq m on a 1621sq m Light Industry zoned site at 176-178 Station Rd, Penrose, sold for $2m at a 4.9 per cent yield through William Gubb, James Hill, Greg Hall and Sunil Bhana, Bayleys Auckland. There was a lease to a panel beating business over both titles at $98,000 per annum net.