A Wairau Valley property with 4 light industrial units on it sold dead on a 5% yield on appraised rental at Colliers’ auction today.
All 3 properties in the auction sold under the hammer.
A TV3 warehouse used for live audience TV shows sold at a 5.4% yield and a longtime pie shop on Onehunga Mall sold at a 5.5% yield.
Diana Drive at the top of the Wairau Valley is well established as a light industrial precinct.
The other 2 properties are in suburbs with a development focus – Grafton, but a short walk to the Mt Eden railway station, which will be come a more important stop once the city rail link work is completed; and Onehunga, where residential intensification continues.
71 Boston Rd:
Features: 799m² site zoned business mixed use (21m height control), 866m² floor area, fully consented for live audience TV shows, tenant MediaWorks TV Ltd’s (TV3) final lease expiry 30 November 2020, seismic rating 80% new building standard, 6 parking spaces
Rent: $196,000/year + gst, excluding opex of $29,638/year + gst & rates $17,020/year including gst
Outcome: sold for $3.625 million at a 5.4% yield
Agents: Jonathan Lynch & Hamish Paterson
292 Onehunga Mall:
Features: 180m² site zoned business town centre, 67m² net lettable area, leased to Crosby’s Pies bakery for over 40 years, rear access from public service lane, 2 parking spaces
Rent: $24,000/year net + gst, 4-year lease term runs to May 2022, 3 4-year rights of renewal
Outgoings: rates $3420/year, insurance $2819/year
Outcome: sold for $436,000 at a 5.5% yield
Agents: Gawen Bakshi & Ned Gow
78 Diana Drive:
Features: 2024m² site zoned business light industry, 872m² building area, 4 1970s industrial units with subsequent refurbishment & subdivision – 3 on long-term leases & one vacant; all have clearspan warehousing, full-height roller door, office & amenities, storage mezzanine, A grade seismic rating, total 18 parking spaces
Rent: current $112,500/year net (including parking) with one deliberate vacancy; market rent appraised at $135,000/year net; one unit leased from 2012, 2 from 1 August, all 6-year terms
Outgoings: opex $19,558/year (including assessment for vacant unit)
Outcome: sold for $2.7 million at a precise 5% yield on appraised rental
Agents: Matt Prentice, Euan Stratton & Shoneet Chand