A 90-year-old Karangahape Rd building (pictured right) has been sold on an 8% yield, compared to 7.25% for the brand new $65 million building 3 at Mansons TCLM’s Telecom Place.
In 2 other sales by Bayleys agents, owner-occupiers have bought office units in Administrator House & the old South British Building – the South British one after being passed in at an auction in early June.
Administrator House,44 Anzac Avenue, unit H:
Features:282m² penthouse level office, deck & water views, 2 basement parking spaces & storage unit
Outcome: sold to existing owner-occupier for $675,000 at $2230/m²
Agents: Cameron Melhuish & Damien Bullick
Old South British Building, 3-13 Shortland St, office unit 8B:
Features: 373m², refurbished office unit split into 4 tenancies, purchaser will move into the one 106m² vacant tenancy
Rent: $74,567/year net + gst from 3 tenancies
Outcome: no bid at auction in June, sold now for $1.425 million at $3815/m²
Agents: James Were & Scott Kirk
208 Karangahape Rd:
Features:670m2 site, 1920s-built 1532m2 3-level building with an IEP assessment of 21.9% of new building standard, ground-floor tenant Discount Mart has 6-year lease until March 2017 plus one 6-year right of renewal, and there’s a number of smaller monthly tenancies
Outcome: sold for $1.75 million at an 8% yield
Agents: Colin McKenna & James Chan
Corner Victoria St West & Dock St:
Features: 7495m² Building C at Telecom Place (now Spark City), fully leased to Telecom Corp of NZ Ltd (now Spark NZ Ltd) for 10 years from June 2014 with fixed annual rental increases of 3% for initial 10-year term, and with developer Mansons TCLM Ltd also providing a capital & defects warranty until 31 May 2024
Outcome: sold to Augusta Funds Management Ltd for $65,186,117 at a 7.25% yield; Augusta is offering 780 $50,000 proportionate interests in the property
Agent: Paul Hain
Attribution: Agency release.