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PROPERTIES AND BUSINESSES FOR SALE FROM

AROUND NEW ZEALAND

ISSUE 5 – 2017

Case Studies

TOTAL PROPERTY CASE STUDY

Sold by Auction2nd August 2017Bayleys House, 30 Gaunt Street,Auckland Central, New Zealand

Sale price$2,380,000

Yield5.63%

Source of purchaserReferral

Purchaser profilePassive investor

Laurie Burt+64 27 413 [email protected] Howe-Smith Realty Ltd, Bayleys,Licensed under the REA Act 2008

Matt Mimmack+64 21 229 [email protected] Howe-Smith Realty Ltd, Bayleys,Licensed under the REA Act 2008

Property Details

• A highly desirable property on a prominent corner site• Established and reputable tenancy in place• Ample car parks available with dual site access• Functional split of warehousing, showroom and offices

This investment ticks a lot of boxes. Leased to one of Australia’s largest listed companies, the property offers exposure, a functional configuration for a number of business users and ample car parking spaces. Located centrally in the North Harbour Industrial Estate, allows for easy motorway access - north, south and west.

Tenancy Details

Tenanted to New Zealand Safety Blackwoods for a term of four years with a net rental of $134,000pa + GST and outgoings.

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Total Floor Area 668m² (approximately)______________________________________________________________________________________________________

Car Parks 15______________________________________________________________________________________________________

Marketed nationally in Total Property and received 45 enquiries from advertising and direct contact through our database. Came down to 2 bidders in the auction room with the owner of the neighbouring property and the subsequent purchaser fighting it out to the conclusion.

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Sale Summary


Boundary lines are indicative only

Sold by Post-auction13th September 2017Bayleys House, 30 Gaunt Street,Auckland Central, New Zealand


Yield3.97%

Source of purchaserEstablished Client

Purchaser profileActive add value investor

Brian Caldwell+64 27 481 5505Devereux Howe-Smith Realty Ltd, Bayleys, Licensed under the REA Act 2008

Ashton Geissler+64 21 252 9277Devereux Howe-Smith Realty Ltd, Bayleys, Licensed under the REA Act 2008

Damian Stephen+64 21 808 092Devereux Howe-Smith Realty Ltd, Bayleys, Licensed under the REA Act 2008

Property Details

• Situated on the restaurant golden mile of Takapuna• A pivotal link in the development of the immediate surroundings • Will appeal to a developer with flair and vision

The property comprises of three ground floor retail premises, a first floor restaurant and hairdressing salon, being a total floor area of 995m² (approximately). With frontage to Killarney Street and Hurstmere Road this building is a landmark of Takapuna and offers the market a rare opportunity to purchase a substantial landholding with income and considerable upside potential under the AUP (OP).

The Auckland Unitary Plan (Operative in Part) provides opportunities for the savvy forward thinking developer/investor.

Tenancy Details

The property is currently returning $269,117.76pa + GST and outgoings from four separate tenancies.

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Floor Area 995m² (approximately)______________________________________________________________________________________________________

Land Area 567m² (more or less)______________________________________________________________________________________________________

Marketed through Total Property nationwide. Enquiries came from Auckland wide buyers. Sold by post auction negotiations to the second highest bidder - an existing client of Bayleys.

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Sale Summary



Sale price$3,075,000 + GST (if any)

Yield4.92%

Source of purchaserTrademe.co.nz


Cameron Melhuish+64 21 479 [email protected]

Genevieve Thompson-Ford+64 21 022 [email protected]

Andrew Wallace+64 21 148 [email protected] Real Estate Ltd,Licensed under the REA Act 2008

Property Details

• High-profile freehold standalone investment in sought after Freemans Bay• Fully leased with attractive long-term leases and built in annual rental growth• Currently returns $140,377 + GST p.a. increasing to $149,000 + GST p.a. in November 2017

Investment opportunities in Freemans Bay, particularly ones of this calibre, are tightly held. Its high-profile ground floor is home to a well-established retail tenant with its current lease expiry in November 2023. Upstairs, which is fully leased until August 2024, is a beautifully presented office complete with polished wooden floors, an impressive stud height with skylights throughout. All leases feature personal guarantees plus built in annual fixed rental increases.

Tenancy Details

The property is fully leased currently returning $140,377 + GST p.a. increasing to $149,000 + GST p.a. in November 2017. All tenancies have built in annual fixed rental increases.

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Floor Area 592.57m² (approximately) ______________________________________________________________________________________________________


Zoning Business - Mixed Use______________________________________________________________________________________________________

Sold to a Tauranga Based investor for long term hold.______________________________________________________________________________________________________

Sale Summary


Sold by Private Treaty6th July 2017


Yield7.89%

Source of purchaserBayleys.co.nz


Anna Radkevich+64 21 268 [email protected] Howe-Smith Realty Ltd, Bayleys,Licensed under the REA Act 2008

Phil Haydock+64 21 192 [email protected] Real Estate Ltd,Licensed under the REA Act 2008

Property Details

• Centrally located in the heart of Queen Street• Total net floor area approximately 631m² on three separate titles• Potential for future residential apartment development

Located on the corner of Queen and Wyndham Streets in the heart of the Auckland Central Business District, the building is within a short walking distance to a full range of amenities. Close motorway access is via egress points to and from Hobson and Nelson Streets. The property comprises of various partitioned offices and meeting rooms, offering a number of strong attributes for add value investors, owner occupiers, commercial and residential developers. The underlying City Centre zoning and functional floor plate are ripe to add value, along with its prominent position, close proximity to all public transport modes, and Queen Street’s thriving retail, commercial precinct and apartment living.

Tenancy Details

Fully leased returning $150,000pa + GST.______________________________________________________________________________________________________

Total Floor Area 631m² (approximately) - three separate titles______________________________________________________________________________________________________

Car Parks Two (2) - two separate titles______________________________________________________________________________________________________

The property was put through a comprehensive marketing campaign using Total Property, generated 44 enquiries and sold prior to the Deadline Private Treaty date.

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Sale Summary



Sold by Tender17th July 2017Bayleys House, 30 Gaunt Street,Auckland Central, New Zealand

Sale price$1,610,000 + GST (if any)

Yield4.09%



Cameron [email protected] Real Estate Ltd,Licensed under the REA Act 2008

Andrew [email protected] Real Estate Ltd,Licensed under the REA Act 2008

Genevieve [email protected] Real Estate Ltd,Licensed under the REA Act 2008

Property Details

• Premier Upland Village investment opportunity• Fully leased providing attractive cash flow underpinned by long-standing medical tenant

A high profile position in the tightly held Remuera Upland Village, a tightly held boutique commercial precinct surrounded by some of Auckland´s most established residential suburbs.

The property is fully leased providing an attractive cash flow of $65,839 + GST pa. This is underpinned by the Remuera Village Medical Centre who occupy the ground floor tenancy and have been in the Village since 1960. Recent rental valuations support rental growth.

Tenancy Details

The property is fully leased returning $65,839.00 + GST p.a. (net)______________________________________________________________________________________________________

Floor Area 157m² (more or less)______________________________________________________________________________________________________


Zoning Business - Neighbourhood Centre Zone______________________________________________________________________________________________________

Sold to an Auckland based investor for long term hold.______________________________________________________________________________________________________

Sale Summary


Sold by Tender3rd August 2017Bayleys House, 30 Gaunt Street,Auckland Central, New Zealand




Sunil Bhana+64 21 938 [email protected] Real Estate Ltd, Licensed under the REA Act 2008

Fraser Pervan+64 22 468 [email protected] Real Estate Ltd, Licensed under the REA Act 2008

Property Details

• Four tenancies currently returning a total of approximately $98,920pa net + GST with a further 52m² vacancy to lease or occupy

• 512m² freehold site in the heart of Ellerslie Shopping Centre• Five on-site car parks• Easy access to the motorway and train network with a wide residential catchment nearby

Explore the upside in leasing the vacant space and or future redevelopment under the Town Centre zoning, providing for retail, commercial and residential users.

Tenancy Details

Four (4) tenancies returning a total of approximately $98,920pa net + GST with 52m² currently vacant. Full tenancy details are available upon request.

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Building Area 368m² (more or less)______________________________________________________________________________________________________


Zoning Town Centre ______________________________________________________________________________________________________

NBS Rating 70% - Grade B______________________________________________________________________________________________________

Successful 5 week tender campaign in Total Property. ______________________________________________________________________________________________________

Sale Summary




Source of purchaserProspecting

Purchaser profileOwner occupier SME

Piyush Kumar+64 027 410 [email protected] Real Estate Ltd, Counties,Licensed under the REA Act 2008

Peter Migounoff+64 027 492 [email protected] Real Estate Ltd, Counties,Licensed under the REA Act 2008

Property Details

• 397m² land and 269m² floor area• Home to a national bank until recently

This is a generously proportioned, rectangular site with substantial development potential in the ever popular Otahuhu Town Centre. Positioned just off the Great South Road the property is suitable for a variety of commercial use.



Zoning Business - Town Center Zone______________________________________________________________________________________________________

Car Parks 5 (rear)______________________________________________________________________________________________________

Marketed nationally in Total Property. Four active bidders in the room, sold under the hammer to a owner operator. Bidding opened at $700,000 and property sold at $1.23 million.

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Sale Summary



Sale price$580,000 + GST

Source of purchaserLocal Newspaper

Purchaser profileOwner occupier SME

Terry Kim+64 27 4711 [email protected] Howe-Smith Realty Ltd, Bayleys, Licensed under the REA Act 2008

Tony Chaudhary+64 21 995 121tony.chaudharyBayleys Real Estate LtdLicensed under the REA Act 2008

Property Details

• Modern and well-presented commercial /retail unit• Rapidly developing Botany South location• Opportunity to take over existing dog grooming business• Would suit a variety of retail businesses

Located within the growing precinct of Flat Bush/ Botany South, approximately 4km from the Southern Motorway 1 and Botany Town Centre. Within few minutes drive is Manukau City Centre. Neighbouring tenants include a medical centre, pharmacy, restaurants, gym, hair salon etc. All have been established to serve the growing population of Flat Bush and Botany region.

Floor Area 158m² (approximately)______________________________________________________________________________________________________

Car Parks 7 allocated car parks______________________________________________________________________________________________________

Facilities Toilet, Disabled toilet, Kitchenette, Office and Storage______________________________________________________________________________________________________

This is owner occupied property and the Vendor was moving overseas at the end of this year. Vacant possession made the vendor lower his expectation of sale price. Finally the Vendor has accepted a pre-auction offer few days prior to Auction date. The property was sold to pre-auction purchaser under the hammer. Sold at 6.2% estimated market rental.

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Sale Summary


Sold by Post-auction10th August 2017


Yield6.46%



Tony Chaudhary+64 21 995 [email protected] Real Estate Ltd, Manukau,Licensed under the REA Act 2008

Janak Darji+64 21 047 [email protected] Real Estate Ltd, Manukau, Licensed under the REA Act 2008

Amy Weng+64 21 177 [email protected] Real Estate Ltd, Manukau, Licensed under the REA Act 2008

Property Details

• Well-established bar and gaming lounge with 18 gaming machines• Ten year lease from March 2017 with fixed rental reviews• Returning $118,000pa + GST and outgoings

The property is a two storey retail unit fitted out as a bar and gaming lounge, with a self contained upstairs office. This well established complex is surrounded by a mix of commercial and retail businesses, that include Fruit World, Z Service Station and the newly opened Mercedes car dealership.

Ti Rakau Drive is the main road servicing the residential catchment of Pakuranga, East Tamaki and Botany. Properties of this nature are sought after in a tightly held location.

Floor Area 443m² (approximately) ______________________________________________________________________________________________________

Car Parks Nine (9)______________________________________________________________________________________________________

The property went to auction on 2nd August 2017. We had a couple of parties attending the auction but no bids was received and the property was passed in. Three days later an enquiry from TradeMe was received and the property was sold by negotiation for $1,825,000. The sale price achieved was in line with vendor´s expectation.

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Sale Summary


Sold by Private Treaty14th August 2017247 Cameron Road,Tauranga, New Zealand

Sale price$695,000

Yield5.14%

Source of purchaserSign


Graeme Coleman+64 27 574 [email protected] Realty Ltd, Bayleys,Licensed under the REA Act 2008

Brendon Bradley+64 21 816 [email protected] Realty Ltd, Bayleys,Licensed under the REA Act 2008

Property Details

• High-profile corner site with frontage to busy Jellicoe Street• Leased to strong national brand• Industrially zoned premise on 809m² freehold site• Located in the thriving Te Puke township

This 322m² high-profile building is on the market for the first time in approximately 20 years.

Situated on a corner site on the main road through Te Puke gives the business a high profile.

Name of Tenant Bridgestone New Zealand Limited______________________________________________________________________________________________________

Commencement Date 1st April 2000______________________________________________________________________________________________________

Rights of Renewal Five (5) of Six (6) years each______________________________________________________________________________________________________

Tenancy Details

Total Land Area 809m²______________________________________________________________________________________________________

Building Area 322m²______________________________________________________________________________________________________

The property initially went to Auction in March 2017 with bidding to $690,000. The reserve was $700,000 and the owner and purchaser wouldn’t budge. The original listing agent left Bayleys and the property was then relisted and an advert placed in Total Property. This generated a significant amount of enquiry however It was from the sign that a Kiwi returning to live in New Zealand showed particular interest and after solid negotiations was sold at $695,000.

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Sale Summary


Sold by Auction20th July 2017Motion Entertainment, Conference Centre, 346 Te Ngae Road, Rotorua, New Zealand

Sale price$285,000

Yield9.86%

Source of purchaserBayleys.co.nz


Brei Gudsell+64 7 349 [email protected] Realty Ltd, Bayleys,Licensed under the REA Act 2008

Paul Stewart+64 7 349 [email protected] Realty Ltd, Bayleys,Licensed under the REA Act 2008

Property Details

Some would take comfort in the guarantee that this healthy fully tenanted investment in the well utilised Glenholme shops has been in the family for 40 years. Suddenly, investing in the children´s future is no longer needed, as they have all dispersed and live globally. Split the risk with these three retail units totaling 170m², on 348m² of freehold land.

Tenancy Details

Property is fully tenanted to a takeaway restaurant, beauty salon and a dress boutique currently returning $28,103 + GST net per annum.

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Floor Area 170m² (more or less)______________________________________________________________________________________________________

Zoning Commercial 3______________________________________________________________________________________________________

This property was marketed nationally in the Total Property magazine. The property had steady interest throughout the marketing campaign, with a lot of interest from purchasers who were new to commercial real estate. The property sold under the hammer on auction day to an out of town investor.

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Sale Summary



Sold by Auction3rd August 201744 Roberts Street, Taupo, New Zealand

Sale priceConfidential


Purchaser profileDeveloper

Brendan Gallagher+64 27 222 [email protected] Realty Ltd, Bayleys, Licensed under the REA Act 2008

Property Details

• Boutique scale development opportunity• 1.3880 hectares• Near flat contour• Established neighbours

With future needs adequately met, The Parish of St Patrick has listed this subdivided section of 1.3880 hectares for sale.

This very appealing development property offers access from two streets, is near flat in contour, overlooks the adjacent primary school playing fields to the east and an expansive council reserve, giving the site a very open and spacious feel and on to neighbouring rural zoned property to the west. The north and south boundaries have existing, established residential dwellings with secure fencing in place.

Land Area 1.3880 hectares (more or less)______________________________________________________________________________________________________

Zoning Residential______________________________________________________________________________________________________


Sold by Auction3rd August 2017176 Broadway Avenue,Palmerston North, New Zealand

Sale price$455,000

Yield8.3%



Karl Cameron+64 21 428 [email protected]

Bede Blatchford+64 27 532 [email protected]

Lewis Townshend+64 21 454 [email protected] to Coast Ltd, Bayleys,Licensed under the REA Act 2008

Property Details

• Brand new 10 year lease term to a quality national tenant• Fixed two yearly CPI rent increases for duration of lease• Fabulous character building recently fully refurbished and seismic strengthened to 70% NBS• Very affordable and rare investment opportunity in the growing rural hub of Feilding

The iconic character building has been strengthened and fully refurbished to a quality standard inside and out - all the hard work has been done. With a long term lease this investment further benefits from strong tenant covenant being part of Thai House group, which operates 14 established restaurants throughout the North Island.

Name of Tenant AB Group Limited______________________________________________________________________________________________________

Term of Lease 10 years______________________________________________________________________________________________________

Rights of Renewal One (1) of six (6) years______________________________________________________________________________________________________

Net Rental $38,000 pa + GST______________________________________________________________________________________________________

Tenancy Details



Zoning Business______________________________________________________________________________________________________

Good interest, three phone bidders, sold at auction for $455,000 at a 8.3% yield______________________________________________________________________________________________________

Sale Summary



Sold by Deadline Private Treaty3rd August 2017176 Broadway Avenue,Palmerston North, New Zealand


Yield7.88%



Lewis Townshend +64 21 454 [email protected] Coast to Coast Ltd, Bayleys, Licensed under the REA Act 2008

Sarah Boles+64 21 711 156 [email protected] Real Estate Ltd,Licensed under the REA Act 2008

Property Details

• National brand tenant• Significant number of on-site car parks (9)• Excellent position with neighbouring tenants, The Warehouse, Resene Colour Shop, and

Countdown supermarket

Built in 2011 and occupied since by Postie Plus who have renewed for another three year term commencing August 2017. The building is located in Feilding’s bulk retail centre, comprising a number of well known national brand tenants. This store is one of the top 10 performing stores for Postie Plus in the country. This property represents an excellent opportunity for a savvy investor to secure a national brand tenant in a modern building at a great yield.

Name of Tenant Postie Plus Group Limited______________________________________________________________________________________________________

Term of Lease Three (3) years commencing 9th August 2011______________________________________________________________________________________________________

Net Rental $84,000pa + GST ______________________________________________________________________________________________________

Tenancy Details

Land Area 922m²______________________________________________________________________________________________________

Floor Area 492m²______________________________________________________________________________________________________

The marketing campaign generated 24 enquiries and, after turning down an offer prior the the Deadline close date, a successful sale was concluded.

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Sale Summary



Sold by Auction3rd August 2017The Bayleys Building, Level 14,Cnr Brandon Street and Lambton Quay,Wellington, New Zealand

Sale price$799,000

Yield7.5%



Fraser Press+64 21 328 [email protected] Commercial (2013) Ltd, Bayleys,Licensed under the REA Act 2008

John Pritchard+64 21 755 [email protected] Commercial (2013) Ltd, Bayleys, Licensed under the REA Act 2008

Property Details

• Straight-forward passive investment• New five year lease to BP• Net income $60,766 + GST• Strategic location within popular industrial transport precinct

Located at the gateway to Grenada North’s busy industrial precinct and close to State Highway 1. BP have occupied the site for ten years and recently exercised their right of renewal for an additional five years.

Name of Tenant BP Oil New Zealand Limited______________________________________________________________________________________________________

Term of Lease 5.25 years remaining______________________________________________________________________________________________________

Review Date Two (2) yearly______________________________________________________________________________________________________

Rights of Renewal Two (2) x five (5) years______________________________________________________________________________________________________

Net Rental $60,766.03______________________________________________________________________________________________________

Tenancy Details

Land Area 1,247m²______________________________________________________________________________________________________

Zoning Business 2______________________________________________________________________________________________________

A passive investment leased to BP. The site is used as a BP truck stop and appeals to a range of national passive investors.

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Sale Summary



Sale price$2,100,000 + GST

Yield6.95%


Purchaser profileOwner occupier corporate

Andrew Smith+64 21 421 [email protected] Commercial (2013) Ltd, Bayleys,Licensed under the REA Act 2008

Property Details

• Two full net leases with guarantees• 14 off-street car parks• Annual net rental $143,231 + GST

This high profile investment property ticks all the boxes. With two full net leases both with guarantees and Jetts with annual CPI + 1% increases. This property has had a quality refurbishment and tenant fit-outs carried out over recent years including a total re-roof last year.Capped off with 14 on-site car parks will ensure the future desirability of this property.

Name of Tenant NZ Fitness Nine Limited______________________________________________________________________________________________________

Term of Lease Five (5) year______________________________________________________________________________________________________

Tenancy Details

Total Floor Area 642.7m²______________________________________________________________________________________________________

Car Parks 14______________________________________________________________________________________________________

Land Area 1,009m²______________________________________________________________________________________________________

Zoning Central Commercial______________________________________________________________________________________________________

This fully tenanted investment property had two net leases with guarantees. The large, off street parking capability was the biggest draw to the property. With the school holidays at the same time as the campaign, enquiries only gained traction towards the end of week 3.

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Sale Summary





Purchaser profileOwner occupier corporate

Andrew Smith+64 4 499 [email protected] Commercial (2013) Ltd, Bayleys,Licensed under the REA Act 2008

Property Details

• Column free, high stud (6.4m at the knee) warehouse• Additional access and parking at rear• Excellent natural light• Potential annual net rental $65,000 + GST

Located in the heart of Miramar’s industrial precinct, more recently dominated by businesses associated with the film industry.

Tenancy Details

Sold with vacant possession.______________________________________________________________________________________________________

Warehouse 385m²______________________________________________________________________________________________________

Office/Amenities 179m²______________________________________________________________________________________________________

Floor Areas 743m²______________________________________________________________________________________________________

Land Area 650m²______________________________________________________________________________________________________

Zoning Business 1______________________________________________________________________________________________________

This property gained good coverage in both the Dominion Post and the NZ Herald as the key marketing point was its location in relation to Wellington’s film industry and Peter Jackson. A pre-auction offer was received at $820,000 and was sold under the hammer for $1,130,000.

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Sale Summary

case studies - bayleys real estateinfo.bayleys.co.nz/rs/530-iiw-969/images/total property 5... ·...

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