City shopping centre sells for $4m

04:05, Dec 05 2012

A large piece of Palmerston North commercial property has sold well above its capital value.

The Midway Plaza complex, on the corner of Albert and Main streets, was sold at auction on Friday for $4.15 million.

Latest valuations  put the value of the 4046-square metre site at $3.7m.

Baileys Manawatu director Karl Cameron said there were five active bidders on the property, which made an 8.5 per cent return for the owner.

The complex is fully tenanted, with most of the businesses having long-term right of renewal agreements in place.

Cameron said the sale was encouraging given recent movement in the commercial market.

''The commercial market has been reasonably challenging this year, but for good property there are plenty of buyers.''

The new owner of the property was from Auckland, Cameron said.

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Manawatu Standard