Fierce bids for sites in prime locations

This building at 370 Great South Rd, Papatoetoe fetched the highest auction price. Photo / Supplied

Continuing strong demand for well-located retail properties selling at less than $1 million was reflected in fierce bidding competition for a number of properties at Bayleys' Greater Auckland auction, with two selling at yields of less than 6 per cent.

The highest price fetched under the hammer was $950,000 for a 300sq m building with five tenancies at 370 Great South Rd, Papatoetoe, sold by Brice Clark and Tony Chaudhary of Bayleys Manukau.

Located on a 481sq m site at "School Corner" on a busy intersection at the southern end of Papatoetoe's retail strip, it generated spirited bidding on the auction floor.

Bayleys auctioneer Richard Valintine declared the property "on the market" at $720,000 and the momentum continued to build from there, with two bidders fighting it out. The property was eventually sold at a 7.56 per cent yield.

The occupants include VIP Curries - an Indian takeaway and restaurant on a 14-year lease expiring in 2020 - a Chinese herbal clinic, a beauty-therapy clinic, a hair salon and kava store.

Also attracting strong bidding was a 54sq m hairdressing outlet, part of the Sharing Shed chain, in the Eden Quarter retail complex at 292 Dominion Rd, Mt Eden, which sold for $633,000 at a 5.98 per cent yield through Nicolas Ching and Lisa Nielson of Bayleys Auckland.

It was declared on the market at $620,000, with bidding increasing in $2000 and $1000 increments.

The property has a six-year lease from 2007, with a six-year right of renewal, and Ching says one of its attractions is its built-in rental growth, with a 2.5 per cent rental increase every even year and a review to market every odd year.

Also going at a low yield was a 92sq m unit at 69 Wiri Station Rd, occupied by the Manukau Wiri Station Bakery and Lunchbar, which sold for $285,000 at a 5.28 per cent yield through Nicolas Ching of Bayleys Auckland and Tony Chaudhary and Brice Clark of Bayleys Manukau.

The unit was pronounced "on the market" at $225,000 and strong bidding competition took it well beyond this, with a $1000 final bid increase eventually securing the property.

The unit, one of 20 in a single-level retail complex, has a four-year lease to 2014 with rights of renewal for a further eight years.

Also selling under the hammer was a 43sq m unit on level one of the Mid City Shopping Arcade at 239 Queen St, which went for $370,000 at a 10.7 per cent yield through Millie Liang of Bayleys Auckland.

The unit is occupied by a fashion tenant who recently renewed the lease for three years.

A 233sq m freehold unit title on the corner of Lincoln Rd and Universal Drive in Henderson, one of 23 units which form part of the Lincoln North Shopping Centre, sold after the auction for $1.05 million at a 7.9 per cent yield through Nicolas Ching and James Chan of Bayleys Auckland. It is tenanted by a Video Ezy outlet on a six-year lease until 2015.

Sold before the Greater Auckland auction was a 2500sq m Business 5-zoned site at 439 Roscommon Rd, Clendon, which was acquired for $1.75 million.

The former service-station site has about 840sq m of vacant buildings in the prime corner position next to Clendon Shopping Centre.

It sold at $700 a sq m through Katie Wu and John Bolton of Bayleys Manukau and Shane Snijder of Bayleys Counties.

Another property to sell prior to auction was a 285sq m restaurant occupied by Malaysia Nyonya at 87 Picton St, Howick, which went for $450,000 at a 9.22 per cent yield through Luke Carran and Mark Pittaway of Bayleys Manukau. It has a four-year lease with four four-year rights of renewal.