Flood of bidders as six properties sell

Last updated 11:59 07/12/2013

HOTLY CONTESTED: The Midas Auto Services garage in Lower Hutt.

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Commercial Property

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As many as 10 bidders scrapped over a central Lower Hutt industrial property which sold for $912,000 at a Bayleys commercial auction this week.

The Midas Auto Services garage at 10 Pretoria St, on the corner opposite Les Mills Gym, was the most fiercely contest property at Thursday's auction.

It also fetched top price in the sale in which all but one of seven offerings were sold. The property is returning a net annual rent $67,746 and the sale price represented a passing yield of 7.4 per cent.

There was another protracted bidding war for a strip of six shops at 64 Kenmore St, Newlands. It went for $764,000 at a passing yield of 9.3 per cent.

A 270 square metre retail unit at Kapiti Lights, Paraparaumu, leased to the Public Trust went under the hammer for $760,000 at a passing yield of 7.8 per cent.

A well-leased retail property on a long-term lease to the BNZ at 193 Queen St, Masterton, sold quickly with the sole bidder securing it for $810,000. With the BNZ paying a net annual rent of $71,700 the sale indicated a passing yield of 8.8 per cent.

Bayleys director Mark Hourigan said the buyer secured the property after a "king hit" high opening bid of $800,000, which put off other would-be buyers.

After failing to draw any competing bids the auction was halted briefly for hurried negotiations during which the sole bidder was persuaded to lift the offer to $810,000.

A 2753 sqm property at 1 and 3 King Charles Dr, Upper Hutt - which is leased to seven industrial, commercial and residential tenants - fetched $455,000. With tenancies returning a net annual rent of approximately $50,000, the price reflected a yield of 11 per cent.

A small two-storey office unit at 5D 33 Kaiwharawhara Rd, Ngauranga, sold for $340,000. With the tenant, Sota Print Workshop, paying a net rental of $28,175, the sale price represented a yield of 8.3 per cent.

A warehouse and yard at 119A Port Rd, Seaview, leased to Bramco Granite and Marble, was passed in after failing to draw any bids.

Hourigan was pleased to see so much investor interest in the company's final commercial auction for the year. There was a buoyant mood and the auction proceeded swiftly, in contrast with some sales earlier where a lot of properties were passed in for lack of interest or where bids fell shy of vendors' reserve prices.

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- © Fairfax NZ News


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