Shops at Rialto go for $10m

Rialto Centre on Broadway. Photo / Supplied

Seven Newmarket shops sold at a Bayleys' auction last week fetched more than $10 million.

Ladstone Developments, owned by Ross and Dallas Prendergrast, bought the Rialto cinema and shopping centre from NZX-listed National Property Trust a year ago. They have now realised money from the property, selling the seven shops to investors.

Scott Cordes of Bayleys said that despite publicity about the poor state of Newmarket's retail market, the shop auction was successful.

The shops on Broadway fetched $10.1 million and Cordes said there was no heat on the vendor to quit them.

"Bayleys' commercial auctions sold Rialto properties at 163 Broadway for reserves in excess of the vendor's expectations and the vendor was selling for healthy commercial gain, not because of any forced pressure to sell," he said.

The sales were:

* Unit 2C, Pyjama Co, sold for $366,000, 5.2 per cent yield. Net rental $18,983.03.

* Unit 1D, Specsavers, sold for $2,230,000, 5.3 per cent yield. Net rental $117,582.91

* Unit 1C, Brave, sold for $2,050,000, 6.1 per cent yield. Net rental $124,572.46.

* Unit 1B, Cue, sold for $2,418,000, 7.6 per cent yield. Net rental $184,142.43.

* Unit 2F, Starfish, sold for $700,000, 6.6 per cent yield. Net rental $46,092.48.

* Unit 2B, Kooky, sold $935,000, 6.5 per cent yield. Net rental $60,399.87.

* Unit 2G, RobynMathieson/JenniferJohns, sold for $1,450,000, 7.1 per cent yield. Net rental $102,274.31.

Last year, National Property Trust sold two of its Newmarket assets for $49 million to repay debt.

It quit the Rialto Centre and Carlton DFK Tower.