$13m worth of property sold at auction

There was plenty of demand from investors in Fraser Cove Shopping Centre in Tauranga. Photo / Supplied

Just under $13 million worth of property was sold at Bayleys' auction of retail outlets in the Westgate Shopping Centre in West Auckland and Fraser Cove Shopping Centre in Tauranga.

Chris Bayley, Bayleys commercial and industrial general manager, said there was good bidding across a range of offerings, 10 of which sold at or before auction at an average yield of 7 per cent. Negotiations are continuing on a number of the other properties that were passed in at the auction and the tendering of some larger ones has also attracted good interest.

The properties were offered by the New Zealand Retail Property Group (NZRFPG) which will continue to manage them on behalf of the buyers as well as retaining the majority of the premises at both centres.

A guarantee was offered for those which had leases expiring before March 2013, whereby if the tenant did not renew the leases or exercise a right of renewal, NZRFPG would pay the contract rental for the next three years or until a tenant was obtained at not less than the present contract rental.

Auction results:

* Westgate Medical Centre, Westgate: 396sq m, lease expiring April 30, 2017, sold for $2,140,000 at a 7.5 per cent yield by James Chan and Stuart Bode, Bayleys Auckland.

* Michael Hill/Telecom, Westgate: 121sq m Telecom outlet, lease expiring December 2, 2011, plus 113sq m Michael Hill store, lease expiring March 21, 2013, both with three-year vendor guarantees - sold as one lot for $1.9 million at a 7.55 per cent yield by Stuart Bode and James Chan, Bayleys Auckland, and Tony Chaudhary, Bayleys Manukau.

* TAB, Westgate: 179sq m, lease expiring September 16, 2011, with one four-year right of renewal and three-year vendor guarantee - sold for $1,266,353 at a 6.8 per cent yield by James Chan and Stuart Bode, Bayleys Auckland.

* Pizza Hutt, Westgate: 121sq m, lease expiring September 17, 2010, with a three-year right of renewal and three-year vendor guarantee - sold for $915,559 at a 6.8 per cent yield by James Chan and Stuart Bode.

* Starbucks, Westgate: 71.5sq m, lease expiring November 25, 2011, with two six-year rights of renewal and three-year vendor guarantee - sold for $910,000 at a 7.5 per cent yield by James Chan, Stuart Bode, and Richard Yang, Bayleys Auckland.

* Labtests at Westgate: 100sq m, lease expiring September 6, 2017 - sold for $540,000 at a 6 per cent yield by Chan, Bode and Ben Sue, Bayleys Auckland.

* Repco, Fraser Cover: 545sq m, lease expiring November 30, 2013, with one six-year right of renewal - sold for $2,010,000 at a 7.3 per cent yield by Kevin Wehipeihana and Dave Robins, Bayleys Tauranga.

* Burger King, Fraser Cover: 212sq m, lease expiring September 5, 2014, with two five-year rights of renewal - sold for $1,875,000 at a 6.8 per cent yield by Kevin Wehipeihana and Dave Robins, Bayleys Tauranga.

* Big Bake Bakery, Fraser Cover: 124sq m, lease expiring December 9, 2014, with one five-year right of renewal - sold for $645,000 at a 6.8 per cent yield by Kevin Wehipeihana, Dave Robins and Brendon Bradley, Bayleys Tauranga.

* St Pierres, Fraser Cover: 99sq m, lease expiring December 7, 2014, with two six-year rights of renewal - sold for $555,000 at a 6.6 per cent yield by Kevin Wehipeihana, Dave Robins and Duncan Dysart, Bayleys Tauranga.