Archive | Te Atatu Peninsula

Quay St apartment sells, new Citizen unit & Te Atatu shops passed in

A waterfront apartment on Quay St sold at Bayleys’ auction today, but a new penthouse unit in Urban Collective Ltd (Kelly McEwan)’s The Citizen, across the road from Basque Park in Eden Terrace, attracted no bid.

A fully leases Te Atatu investment of 4 shops was also passed in.

Apartments

CBD

Waterfront

148 Quay St, unit 6A:
Features: 111m², 2 bedrooms, 2 bathrooms, parking space
Outcome: sold for $1.6 million
Agents: Cheryl Regan

Isthmus west

Eden Terrace

The Citizen, 10-12 Exmouth St, unit 601W:
Features: 2m ceilings, 2 bedrooms, 2 living rooms, 2 bathrooms, full-width balcony, 2 parking spaces, 2 storage cupboards
Outcome: no bid
Agents: Julie Quinton & Ellie Prince

Retail

North-west

Te Atatu Peninsula

570 Te Atatu Rd:
Features: 1229m² site, 387m² total floor area, 4 separate shops, rear access, 18m height limit
Outgoings: body corp levy $5660/year
Rent: $89,893/year net + gst
Outcome: passed in at $2.085 million
Agents: Scott Kirk & James Were

Attribution: Auction.

Continue Reading

One sells at 5%, another at hefty premium in Total Property auction

5 of the 8 properties auctioned in Bayleys’ Total Property 5 auction in Auckland today sold under the hammer, and a sixth sold a couple of hours later at a hefty premium above the last bid.

The auctions for 3 other properties were postponed (but they’re listed below).

Most activity was for a retail unit in an Apollo Drive, Rosedale, development on the North Shore (pictured).

Bidding opened at $750,000, equating to a 6.6% yield, it went on the market at $910,000, equating to 5.4%, and after a series of small raises by 3 bidders it sold for $1000 more than an exact 5% yield – the strongest return of the day.

CBD

Queen St

Mid-City Centre, 239 Queen St, basement unit B:
Features: 600m²,
Rent: $168,000/year net + gst from pool hall operator, 8-year lease from March 2018, rent increases 2%/year
Outcome: auction postponed
Agents: Nicolas Ching & James Chan

Isthmus east

Otahuhu

35B Saleyards Rd:
Features: 994m² site, 426m² floor area, 4 light industrial units, 3 tenants, all on 2-year leases
Rent: $64,774/year net + gst
Outcome: sold for $1.031 million at a 6.3% yield
Agents: Tony Chaudhary & Nelson Raines

Penrose

14 Greenpark Rd:
Features: 1627m² site, 1451m² warehouse, seismic rating 71%, head office for Momotea restaurant group, plus apartment
Rent: $201,141/year net + gst, lease expiring in 2035
Outcome: auction postponed
Agent: Millie Liang

North-east

Rosedale

56 Apollo Drive, unit 6:
Features: 90m² corner café leased to Duck Duck Goose in 13-unit retail development by Kea Property Group
Rent: $49,500/year net + gst + outgoings from 6-year lease + renewals
Outcome: sold for $991,000 at a 4.995% yield
Agents: Laurie Burt & Eddie Zhong

12 Parkhead Place, unit B:
Features: 627.4m², warehouse with 3 roller doors, offices & amenities at both ends, 12 parking spaces
Outcome: sold with vacant possession for $1.945 million
Agents: Matt Mimmack & Laurie Burt

Wairau Valley

Wairau Junction, 160 Wairau Rd, unit 5:
Features: 59m² retail, tenant Spice Cuisine on 10-year lease from 2013
Rent: $25,000/year net + gst
Outcome: sold for $415,000 at a 6% yield
Agents: Matt Lee & Terry Kim

North-west

Te Atatu Peninsula

570 Te Atatu Rd:
Features: 1229m² site, 4 separate shops, rear access
Rent: $85,093/year net + gst
Outcome: auction postponed
Agents: Scott Kirk & James Were

South

Manukau

533 Great South Rd, unit H:
Features: vacant 1020m² standalone light industrial building, offices & amenities, 11 parking spaces
Outcome: no bid
Agents: Alex McNeil & Karl Price

Manurewa

25 Station Rd:
Features: 344m² site, 550m² building area, 4 separate tenancies on 2 floors, B grade seismic rating, roof replaced 2013
Rent: $71,830/year net + gst
Outcome: sold for $1.25 million at a 5.75% yield
Agents: Dave Stanley & Shane Snijder

Papakura

13 Vernon St:
Features: vacant 2071m² business mixed use site, 573m² floor area, high stud workshop across the rear boundary, lower stud shed at roadfront
Outcome: passed in at $1.3 million, sold within 2 hours for $1.75 million
Agents: Piyush Kumar & Peter Migounoff

Pukekohe

30 Franklin Rd:
Features: vacant 1161m² site zoned business mixed use, 827m² floor area, plans for apartment development available
Outcome: no bid
Agents: Shane Snijder, Scott Penney & Virginia Zhou

Attribution: Auction.

Continue Reading

4 suburban units & Connaught studio sell

4 suburban units and a studio in the Connaught apartment building were sold at Barfoot & Thompson’s city residential auctions on Wednesday, out of 19 homes offered.

CBD

Learning Quarter

Connaught, 14 Waterloo Quadrant, unit 8H:
Features: 32m² studio apartment, balcony, storage locker
Outgoings: rates $1279/year including gst; body corp levy $2835/year
Outcome: sold for $375,000
Agents: Marie Lambert & Ann Mushet

7E Whitaker Place:
Features: 2-bedroom apartment, 2 parking spaces
Outcome: withdrawn from auction
Agents: Ketiesha Elliott & Frank Excell

Isthmus east

Kohimarama

22 Speight Rd, unit 3:
Features: cross-lease, ¼ share in 890m², 2-bedroom apartment
Outcome: passed in at $1.29 million, sold immediately post-auction for $1.38 million
Agents: Julie Kennedy & Chrissie Baker

Onehunga

Norfolk Rise, 110M Grey St:
Features: 3-bedroom townhouse, garden shed, tandem carport
Outcome: sold for $842,000
Agent: Dee Brennan

112C Victoria St:
Features: 219m² section, 3-bedroom unit, study, 2 bathrooms, internal garage
Outcome: sold for $1.06 million
Agents: Ian Thornhill & Frances Li

Remuera

19 Upland Rd, unit 1:
Features: cross-lease, 1/3 share in 1009m², 3-bedroom townhouse, 2 bathrooms, office, double internal-access garage
Outcome: passed in at $1.35 million
Agent: Alex Baker

St Heliers

69A St Heliers Bay Rd:
Features: cross-lease, half share in 738m², 3 bedrooms, 2 bathrooms, garage converted to office, carport
Outcome: no bid, back on the market at $1.595 million
Agent: Margot Torrance

Isthmus west

Lynfield

172 Halsey Drive:
Features: cross-lease, half share in 716m², 2-bedroom unit, carport, storage shed
Outcome: sold for $613,500
Agents: Grant & Moira Marshall

Sandringham

40 Leslie Avenue, unit 3:
Features: cross-lease, 1/3 share in 634m², 2-bedroom unit, garage
Outcome: passed in at $639,000
Agents: Carl & Roseanne Madsen

North-west

Te Atatu Peninsula

6 Noall St, unit 1:
Features: 2-bedroom unit, garage
Outgoings: body corp levy nil
Outcome: passed in at $500,000
Agents: Carl & Roseanne Madsen

Attribution: Auctions.

Continue Reading

Section’s potential becomes more of an issue in residential market

As more of Auckland’s unitary plan has become operative this year, awareness has grown of the changes in residential land potential, and therefore potential value.

Real estate agencies will frequently list properties for auction which may/may not have a house on site, but will be promoted for their development potential rather than the value of those existing improvements.

Sale based on that potential redeveloped value means there will be a steady supply of sites throughout suburbia gaining consents for intensification – perhaps 4 townhouses where there was once a single house. In some areas aggregation of sites may make sense, such as in or near a shopping centre, to enable development of apartments.

The drawback is that we are a nation of close to zero experience of apartment living until the 1990s, unlike Australia, where the 3-floor walkup (no lift required if you kept development below 4 levels) became commonplace in Sydney, in particular.

New Zealand’s one experiment in suburban intensification was the “sausage block” of brick & tile units – flats, usually only on ground level but sometimes with a second layer.

They differ from central city apartments in that they generally have some parking provision, and their construction isn’t nearly as expensive as multi-level apartment blocks. Remedial requirements may be confined to the affected unit/s, rather than being spread across multiple owners as happens in apartment blocks.

Pricing will dictate that the trend to intensification continues, offering a choice between more travel & having closer neighbours.

In my auction reports over the last couple of years I’ve paid particular attention to apartment sales because they’re as much an investment product as a home. Standalone houses, on the other hand, have been more an owner-occupier product, with investors holding under 30% of stock until the onslaught over the last 5 years by foreign investors looking for assets they can quickly convert cash into. That onslaught (not all foreign, but at prices boosted by foreign investors looking for quick conversion) has helped lift the investor holding in housing stock closer to 40%.

Now, with intensification of land use likely to spread and become more widely accepted as a norm, residential land prices will become more significant.

Intensification will be priced in – as a general rule – thereby also pushing the prices of standalone homes up, although there’s a lull at the moment after heavy overbuying by foreign investors, speculators, and the least powerful investors of all, first-homebuyers.

Auction results

At Bayleys’ residential auctions around Auckland last week, 3 properties were sold for their land potential, including one a couple of sections back from the water at Whitianga.

CBD

Uptown

8 Scotia Place, unit 7F:
Features: one-bedroom apartment, parking space; remedial issues, start date set
Outcome: auction postponed
Agents: Marcus Fava

Isthmus east

Glendowie

2 Navarre Rd:
Features: 802m² corner site, zoned residential mixed housing urban, existing house a 3-bedroom 1950s bungalow
Outcome: sold for $1.566 million at $1953/m²
Agents: Dean Markle & Jill Murphy

Mt Wellington

19 Ferndale Rd:
Features: 2 bedrooms, double garage
Outcome: sold for $708,000
Agents: Richard Griffin & Pheon Hung

Parnell

27 St Stephens Avenue, unit 3:
Features: 1057m² section, 138m² 3-bedroom townhouse, 2 bathrooms, deck, courtyard, double internal-access garage
Outgoings: rates $3100/year including gst
Outcome: sold for $1 million
Agent: Fleur Denning

North-west

Te Atatu Peninsula

5 Peachgrove Rd:
Features: 809m² flat site, zoned terrace housing & apartment, 3-bedroom house
Outcome: sold for $1.115 million at $1378/m² land
Agents: Tina Tang & Ryan Steven

South of the Bombays

Whitianga

4 Marlin St:
Features: vacant 579m² section near beach
Outcome: sold for $420,000 at $725/m²
Agents: Bev Calder & Sheree Henderson

Attribution: Agency release, my comments.

Continue Reading

Auction results, and a market assessment

Amid the noise over a decline in residential sales, it’s important to establish where that’s happening and in what types of market.

In Auckland, it was not at all surprising that a steep rise in prices should be followed by a decline, while Reserve Bank measures tightening borrowing have forced a further decline through the inability to borrow, and the absence of Chinese borrowers this year – compared to auctionrooms last year that were filled with Chinese buyers who appeared to have no limits – has taken further steam out.

The auction results presented below are from Barfoot & Thompson’s cbd apartments auction yesterday – 2 units, one sold – and from residential auctions on Tuesday & Wednesday.

Of the total 13 properties listed below, 8 sold, but the selection I’ve focused on is presented for the geographical mix as much as for the housing type.

Now that Auckland Council’s unitary plan is almost entirely in place, the real estate world has begun presenting more properties for their redevelopment potential, and many of those with such potential at lower prices are in isthmus fringe areas such as Point England & Glen Innes to the east, Mt Roskill & Mt Albert to the west. Unlike the regional fringes where new subdivisions are being developed – on the Hibiscus Coast to the north, across the top of the harbour to the west, and in a number of districts through old Papakura & Franklin to the south – these ones are close to the city centre, within 10km compared to beyond 25km or 40km.

On the isthmus, a house that was once in a bad neighbourhood can now command a price tag above $1 million, and all it’s done is age. Bad neighbourhoods could be defined as having a high state housing ratio, low-decile incomes, large families squeezed into small homes, poorer construction materials, and a general lack of foliage on sections and in streetscapes.

Those new price tags will force the old families out, and little is being created for them to move to. Those price rises in the bad neighbourhoods will also help lift already-soaring prices in the good neighbourhoods – the leafy areas of the eastern suburbs, for example.

Much of the entry-level housing is in cross-leased houses or mostly old brick-&-tile units. The prices for those can be as high as a modern product such as a 3-year-old GJ Gardner home (one in Mt Albert is listed below).

CBD

Learning Quarter:

Forte, 37 Symonds St, unit 505:
Features: 2-bedroom apartment, 2 bathrooms, deck
Outgoings: rates $1253/year including gst; body corp levy $3634/year
Outcome: sold for $540,000
Agents: Justin Choi & Zoran Farac

Longview, 6 Whitaker Place, unit 4D:
Features: 55m², one-bedroom apartment, deck
Outgoings: rates $1278/year including gst; body corp levy $3996/year
Outcome: no bid
Agents: Justin Choi & Stephen Shin

Isthmus east

Ellerslie

50 Amy St, unit 9:
Features: 3-storey townhouse, 3 bedrooms, carport
Outcome: sold for $785,000
Agent: Karin de Leeuw

Epsom

10 Orakau Avenue, unit 2:
Features: 2-bedroom townhouse, internal-access garage
Outcome: sold for $1.32 million
Agents: John Zhang & Louissa Bao

Glen Innes

52 Taniwha St:
Features: 837m² section, 3 bedrooms, study, garage, 4 offstreet parking spaces – in redeveloping Wai O Taiki Bay area bordering Glendowie, zoned mixed housing suburban
Outcome: sold for $1.09 million
Agents: Paul Neshausen & Sam Bowen

Mt Wellington

13A Wilkie Place:
Features: cross-lease, half share in 935m², 5-bedroom house – 3 bedrooms upstairs, separate & consented 2-bedroom flat downstairs with own entrance, carport, 2 offstreet parking spaces
Outcome: sold for $920,000
Agents: Jane Wang & Luke Shi

Stonefields

10 Robert Sale Rise:
Features: 354m² section, 235m² townhouse, 5 bedrooms, 3 bathrooms, 2 family rooms & separate lounge, double garage
Outcome: sold for $1.6 million
Agents: Frances Li & Ian Thornhill

Isthmus west

Mt Albert

60D Taylors Rd:
Features: 291m² section, 4-bedroom house, 3 bathrooms, family room, separate lounge, double internal–access garage, built 3 years ago by GJ Gardner
Outcome: sold for $1.36 million
Agents: Paul Donovan & Sharon Walls

Tremont Apartments, 4 Wagener Place, unit 409:
Features: top-floor apartment, 2 bedrooms, secure parking space
Outcome: passed in
Agents: George Fong & Laura Mc Auley

Mt Eden

706 Mt Eden Rd & 2A Watling St:
Features: 2 houses on 809m² corner section, each with own half-share cross-lease – 80m² 2-bedroom house on Mt Eden Rd, 140m² 3-bedroom house, double garage on Watling St
Income assessment: current rental expectation $1000-plus/week
Outcome: passed in when both offered together, no bid on Watling alone
Agents: Kelly Zhang & Hattie Liu

Mt Roskill

98 Melrose Rd, unit 3:
Features: 2-bedroom unit, carport
Outcome: no bid
Agents: Richard Han

North-west

Henderson

16 Matuhi Rise:
Features: 3-bedroom duplex, garage & workshop, carport, in-ground pool
Outcome: passed in, back on market at $649,000
Agents: Repeka Lelaulu & John Elgar

Te Atatu Peninsula

8 Celsmere Lane:
Features: renovated 2-bedroom house on 528m² section
Outcome: sold for $1.12 million
Agents: Angel Li & Louis Lai

Attribution: City apartments auction, auction documents.

Continue Reading

Residential market at a crossroads

You could see a residential property market at a crossroads yesterday.

In 2 sessions at Barfoot & Thompson’s city auctionroom, 30 properties were offered – well under half the 80 or so put through in a day in the peak of the market late last year and a few times this year.

Chinese investors have been less imposing visitors to Auckland’s auctionrooms recently, but crowded the room for the main afternoon session yesterday. Still, they weren’t snapping everything up without caring too much about the price.

13 properties were sold under the hammer, of which 7 contained apartments, suburban units or cross-leased homes.

Another 2 offering apartment development propositions were passed in without a bid being made – the one in Avondale pictured above and the property at the bottom of this page where concept designs have been drawn up.

You will see more like them popping up as opportunists start to scour the region in search of sites that can be intensified under the new unitary plan rules, in a similar way to the surge of cross-leases created about 30 years ago.

They’re in a different market from the standalone homes most sought by the foreign investors, and they also differ from the cross-leases, which produced ground-level crowding but little height.

One of the development options offered yesterday is in Avondale, a suburb destined for considerable change. It’s a dormitory suburb that’s close to both the central city and the shops at New Lynn, and already has many sites earmarked for apartments.

And there you see the crossroads: a downmarket suburb given new attention as the investor focus on the expensive spots in the east wavers, while some attention remains on areas in the west of the isthmus that have seen prices rise sharply this year, prompted mostly by development opportunities.

The other factor in the changing residential market is the effect of Reserve Bank constraints on investment, limiting the ability of traders to turn over properties, and also possibly limiting the level of initial investment in apartment projects that makes construction possible.

Isthmus east

Epsom

43B Cornwall Park Avenue:
Features: cross-lease, half share in 1078m², 4 bedrooms, 2 bathrooms, patio, double internal-access garage
Outcome: sold for $2.55 million
Agents: Diana Bucowski & Peter West

34 Empire Rd, unit 1:
Features: cross-lease, half share in 827m², 4 bedrooms, 3 bathrooms, sunroom, office, double garage
Outcome: sold for $1.69 million
Agents: George Fong & Laura McAuley

52 Manukau Rd:
Features: cross-lease, quarter share in 650m², 3-bedroom unit, carport
Outcome: no bid
Agents: Kelly Zhang & Mark Tung

Mt Wellington

9 Mountain Rd, unit 17:
Features: 75m², 2-bedroom unit, carport
Outgoings: body corp levy $1555/year
Outcome: passed in
Agent: Tanzi Rose

Isthmus west

Avondale

13, 18A & 18B Ahiriri Avenue (pictured above):
Features: fee simply 674m² & 2 cross-leased half shares in 1044m², 3 homes on total 1718m² in 3 titles – 2 3-bedroom bungalows, 2-bedroom home, zoned under the proposed unitary plan for terraced housing & apartments
Outcome: no bid when offered together; no bid on No 13 when offered alone, other 2 then withdrawn
Agents: Bella Stefano & Sheba Soundhar

Grey Lynn

676 Great North Rd:
Features: cross-lease, half share in 776m², 3-bedroom ex-state bungalow, basement 4-car garage, storage
Outcome: passed in
Agents: Matt O’Rourke & Ryan Harding

Mt Albert

13A Lorraine Avenue:
Features: cross-lease, half share in 855m², 198m² home on 2 levels, 5 bedrooms, 2 bathrooms, deck, double garage
Outcome: sold for $722,000
Agent: Kelly Zhang

Mt Eden

7 Ellerton Rd, unit 2:
Features: cross-lease, quarter share in 937m², 2-bedroom unit, deck, carport
Outcome: no bid
Agents: Vern Hines & Sara Knight

39 Shackleton Rd, unit 3:
Features: cross-lease, quarter share in 1223m², 2-bedroom unit, 2 bathrooms, deck, tandem garage
Outcome: passed in
Agent: Robyn Preece

Sandringham

27 Lancing Rd, unit 1:
Features: cross-lease, quarter share in 825m², refurbished 2-bedroom unit, carport
Outcome: sold for $784,000
Agents: Lucy Liu & Calvin Roche

183 Mt Albert Rd, unit 2:
Features: cross-lease, quarter share in 1012m², 2-bedroom unit, study, garage
Outcome: sold for $752,000
Agent: Qi Li

North-east

Totara Vale

2 Ellice Rd, unit 2:
Features: cross-lease, half share in 675m², 2 bedrooms, office, garage, storage
Outcome: sold for $671,000
Agents: Giovanna Ferrario & Mark Garratt

North-west

New Lynn

45 Astley Avenue, unit 2:
Features: cross-lease, 1/6 share in 1396m², 3 bedrooms, internal-access garage, courtyard
Outcome: no bid, back on the market at $600,000
Agent: Sue Allan

1 Copley St, unit 3:
Features: cross-lease, 1/3 share in 1011m², 2-bedroom duplex, office, garden shed
Outcome: sold for $622,000
Agent: Sue Allan

Te Atatu Peninsula

The design concept for apartments on Kervil Avenue, Te Atatu Peninsula.

The design concept for apartments on Kervil Avenue, Te Atatu Peninsula.

57 & 59 Kervil Avenue:
Features: 2 homes now zoned terrace housing & apartments under the proposed unitary plan – 100m² 3-bedroom, garage on 850m², 90m² 3-bedroom on 809m²; indicative concept plans show 54-apartment complex
Outcome: passed in when offered together, not offered separately
Agents: Ann Lepper & James Gai

Attribution: Auctions.

Continue Reading

8 suburban intensive properties sell at Barfoot auctions

7 of 18 properties in a range of intensity (apartments, suburban units, townhouses, cross-leased houses) auctioned at Barfoot & Thompson on Wednesday were sold under the hammer, and one of the 2 auctioned yesterday afternoon also sold. You can check results from Thursday morning’s apartments auction in a separate story linked below.

Isthmus east

Epsom

1A Merivale Avenue:
Features: 3-bedroom unit, carport
Outgoings: body corp levy $630/year
Outcome: passed in, back on market at $1.08 million
Agents: George Fong & Alex Wu

Glendowie

14C Crossfield Rd:
Features: cross-lease, 1/3 share in 1244m², 4 bedrooms, 3 bathrooms, conservatory, double internal-access garage
Outcome: sold for $790,000
Agents: Jane Wang & Dragon Zhou

Meadowbank

86 St Johns Rd, unit 2:
Features: cross-lease, 1/3 share in 809m², 3 bedrooms, 2 bathrooms, deck, offstreet parking
Outcome: no bid
Agent: Chase Liu

Onehunga

66F Grey St:
Features: 2-level 2-bedroom unit, balcony, carport
Outgoings: body corp levy $1922/year
Outcome: sold for $395,000
Agent: Richard Prasad

461 Onehunga Mall, unit 2:
Features: cross-lease, 1/3 share in 1214m², 3 bedrooms, 2 bathrooms, internal-access garage
Outcome: sold for $1.25 million
Agent: Paul Studman

Panmure

51 Ireland Rd, unit 36:
Features: 2-bedroom townhouse in gated complex, carport
Outgoings: body corp levy $2808/year
Outcome: passed in at $528,000
Agents: Rain Diao & Jane Chen

Remuera

103 Remuera Rd, unit 2:
Features: 155m² site + 1/7th of 291m², 3-level 4-bedroom terrace including self-contained ground-floor area, 3 bathrooms, deck, double internal-access garage
Outcome: no bid
Agents: Ross & Joss Goodall

128A Upland Rd:
Features: cross-lease, half share in 743m², 4 bedrooms, 2 bathrooms, study, double garage
Outcome: passed in at $1.3 million
Agent: Dennis Dunford

Isthmus west

Avondale

48 Eastdale Rd, unit 3:
Features: cross-lease, 1/3 share in 771m², 2-bedroom unit, garage
Outcome: sold for $565,000
Agent: Francis Fan

Herne Bay

15B Saratoga Avenue:
Features: cross-lease, 1/3 share in 731m², 2-bedroom unit, carport
Outcome: passed in
Agents: Carl Madsen & George Damiris

Mt Eden

3 Akiraho St, unit 9:
Features: 130m², 3-bedroom apartment in industrial conversion, 2 bathrooms, 2 gated parking spaces
Outgoings: body corp levy $2909/year
Outcome: sold for $861,000
Agents: George Fong & Laura McAuley

19 Ellerton Rd:
Features: 936m² section, 7–bedroom home converted into 3 flats, one of 3 bedrooms and 2 of 2 bedrooms, each with a carport
Outcome: passed in at $1.9 million
Agent: Gill Macdonald

8 Graysons Lane:
Features: cross-lease, half share in 796m², 4 bedrooms, 2 bathrooms, offstreet parking
Outcome: sold for $1.885 million
Agent: Repeka Lelaulu

25 Rossmay Terrace, unit 18:
Features: 2-bedroom townhouse, internal-access garage
Outgoings: body corp levy $2455/year
Outcome: no bid
Agent: Repeka Lelaulu

North-east

Belmont

13 Creamer Avenue, unit 3:
Features: cross-lease, 1/6th share in 809m², 60m² 2-bedroom unit, carport
Outcome: passed in, back on market at $695,000
Agents: Jonathan White

North-west

New Lynn

1 Armstrong Place, unit 1:
Features: cross-lease, half share in 637m², 2-bedroom 120m² duplex, covered deck, garage
Outcome: passed in, back on market at $640,000
Agents: Aken Yuan & Michelle Zhou

Te Atatu Peninsula

9B Tawa Rd:
Features: cross-lease, 1/3 share in 1331m², 3-bedroom unit, deck, carport
Outcome: sold for $560,000
Agent: Emma Zhang

Te Atatu South

12 Poto Rd:
Features: 976m² section, 6-bedroom house converted to 2 flats, 3-car garaging
Outcome: no bid, back on market at $1.28 million
Agent: Sharlene Huang

South

Howick

47 Drake St, unit 2:
Features: cross-lease, half share in 900m², 3 bedrooms, 2 bathrooms, attic, wraparound balcony, garage
Outcome: sold for $850,000
Agent: Doug Lum

Apartments story today: 5 units sell at Barfoots

Attribution: Auctions.

Continue Reading

4 sales & a lease in north-west

Bayleys agents have signed 4 sales in the north-west of the region, and one lease.

North-west

Sales

Helensville

84 Commercial Rd:
Features: 293m2 site, 211m2 retail outlet built around 1910
Outcome: sold vacant for $312,000
Agents: Grant Miller & Laurie Bell

Henderson

192 Universal Drive, unit A6:
Features: 1210m2 retail unit in Lincoln North Shopping Centre occupied by pet store Animates NZ Holdings Ltd since 2006, renewed for a further 6 years in October 2015
Rent: $282,477/year net + gst
Outcome: sold for $3.25 million at an 8.7% yield
Agents: Alan Haydock & Cameron Melhuish

Kelston

24-26 Cartwright Rd (pictured):
Features: 1993m2 site in 2 titles, 490m2 warehouse on one title occupied by joinery business
Outcome: sold to tenant for $1.48 million
Rent: $61,000/year net + gst
Agents: Mike Adams & Grant Miller

Te Atatu Peninsula

29 Neil Avenue:
Features: 819m2 site, retail & residential block comprising 4 shops (dairy, hair salon & 2 food outlets), all with 2-year leases & 2 2-year rights of renewal, and vacant 3-bedroom flat recently refurbished & with potential rent of $400-$450/week
Rent: $39,219/year net + gst
Outcome: sold for $880,000
Agent: Tony Chaudhary

Lease

Swanson

114 Swanson Rd, unit 3: 
Features: 1750m2 warehouse
Rent: $140,000/year net + gst, leased for 4 years, with fixed annual increase of 2.5% plus one 4-year right of renewal
Agent: James Appleby

Attribution: Agency release.

Continue Reading

21 sell out of 34 offered at Bayleys Total Property auction

Bayleys finished its Total Property auction series for the year with 20 sales under the hammer on Wednesday from 34 properties offered, and a post-auction sale confirmed yesterday. Another 11 were withdrawn from the auction.

Image at top: 8 Newton Rd, Grey Lynn, a refurbished building with a mix of uses including a loft-style apartment, sold vacant.

CBD

Quay Park

8 Quay St, unit 1:
Outcome: withdrawn from auction
Agents: Owen Ding & Quinn Ngo

Victoria St

Lister Building, 9B Victoria St East:
9B Victoria Street East, Auckland Central:
Features: 48m² shop, lease to convenience store for 3 years from June 2015, one 6-year right of renewal
Rent: $48,000/year net + gst, yearly 2.5% increases from June 2018 if renewal exercised
Outcome: sold for $820,000 at a 5.85% yield
Agents: Quinn Ngo & Owen Ding

Waterfront

Princes Wharf, 137 Quay St, shed 19, unit 2:
Features: 482m2 leasehold commercial unit plus 63.5m² outdoor seating area, ground rent prepaid until 2095
Outcome: sold for $1.15 million at mortgagee sale
Agent: Tony Bayley

Isthmus east

Ellerslie

38 Eaglehurst Rd, unit 9:
Outcome: withdrawn from auction
Agents: Dave Stanley & James Valintine

Epsom

89B Great South Rd:
Features: 167m2 site, character 2-level 111m2 live/work unit, 2-year lease to tailoring business from March 2015 plus one 2-year right of renewal
Rent: $28,350/year net + gst
Outcome: sold for $675,000 at a 4.2% yield
Agents: Oscar Kuang, James Chan & Terry Kim

Otahuhu

24 Atkinson Avenue, Otahuhu, retail building with development potential.

24 Atkinson Avenue, Otahuhu, retail building with development potential.

24 Atkinson Avenue:
Features: 385m2 mixed-use corner site, height limit of 20.5m under proposed unitary plan, 3 ground-floor retail outlets & 2 flats upstairs
Rent: $42,000/year net + gst from 2 retail leases & one residential tenancy
Outcome: sold for $985,000
Agents: Piyush Kumar, Shane Snijder & Tony Chaudhary

Penrose

35 Maurice Rd, unit I:
Outcome: withdrawn from auction
Agents: Tony Bayley

Isthmus west

Avondale

1977 Great North Rd, Avondale, sold at a yield just under 5%.

1977 Great North Rd, Avondale, sold at a yield just under 5%.

1977 Great North Rd:
Features: 202m² site, 265m² building in block of shops, ground-floor lease to a fruit & vege retailer until June 2017, one 3-year right of renewal, basement area vacant
Rent: $26,400/year net + gst
Outcome: sold for $530,000 at a 4.98% yield
Agents: Mike Adams, James Appleby & Quinn Ngo

Eden Terrace

74D France St:
Outcome: passed in
Agents: Ben Wallace & Matt Gordon

33 Randolph St:
Features: Vacant 2-level 364m² building, ground-floor warehousing & refurbished loft-style upper level suitable for office or apartment use; on 281m² mixed-use site with increased height limit of 32.5m under proposed unitary plan
Outcome: passed in at $1.8 million
Agents: Damien Bullick, Alan Haydock & Jean-Paul Smit

Grey Lynn

564 Great North Rd:
Outcome: passed in, vendor bid of $600,000
Agents: Simon Aldridge & Michael Nees

8 Newton Rd:
Features: 304m2 mixed-use site, 317.5m2 striking architecturally designed & refurbished 2-level building, loft-style apartment with open-plan, character ground-floor space, 4 parking spaces
Outcome: sold vacant for $1.6 million
Agents: Cameron Melhuish & Andrew Wallace

116-120 Surrey Crescent:
Features: 3 dwellings converted to childcare centre plus flat, total 575m² on 1515m² residential 6A site, zoned mixed use under proposed unitary plan; 10-year lease to NZX-listed Evolve Group from July 2012, 2 3-year rights of renewal
Rent: $190,383/year net + gst, 2-yearly CPI adjustments
Outcome: sold for $4.155 million at a 4.6% yield
Agents: Mark Pittaway & James Chan

Mt Eden

718 Dominion Rd:
Outcome: withdrawn from auction
Agents: Oscar Kuang & James Chan

Pt Chevalier

1104 Great North Rd:
Features: 255m² retail unit, parking at front, occupied by Video Ezy on monthly lease until end of year, plus ASB ATM lease
Rent: $88,100/year net + gst
Outcome: sold for $1.05 million at an 8.4% yield
Agents: Quinn Ngo & Matt Lee

North

Kerikeri

60 Kerikeri Rd, unit G06:
Outcome: no bid
Agents: Michael Nees & Brian Caldwell

Warkworth

Artist’s impression of The Grange, Warkworth.

Artist’s impression of The Grange, Warkworth.

3 tenancies were taken to auction in the new Grange retail convenience centre being developed by Square & Main Street Ltd (Adam Reynolds), nearing completion on the former garden & hardware centre site on the southern side of Warkworth. The property at 67 Auckland Road (State Highway 1) covers 7089m²and will have 22 tenancies.

The Grange, 67 Auckland Road, unit PU4, The Coffee Club:
Features: 210m2 unit, including 50m2 covered, all-weather deck & courtyard area, 10-year lease to Coffee Club & one 10-year right of renewal
Rent: $82,500/year net + gst
Outcome: sold for $1.55 million at a 5.3% yield
Agents: James Chan & Steve Orr

The Grange, unit PU2, Bottle-O:
Features: 200m² unit, 8-year lease to independently owned & operated NZ retail liquor store plus 2 4-year rights of renewal
Rent: $70,000/year net + gst
Outcome: sold for $1.16 million at a 6% yield
Agents: Quinn Ngo & Steve Orr

The Grange, unit PU3A, Indian restaurant:
Features: 142m² unit, including 25m2 deck, leased to local Indian restaurant on 10-year term, 2 5-year rights of renewal
Rent: $50,550/year net + gst
Outcome: passed in at $600,000
Agents: James Chan & Matt Lee

North-east

Albany

52 Oteha Valley Rd, unit M:
Features: 278mstandalone retail building occupied by the Meat King for 14 years, new 4-year lease plus one 4-year right of renewal
Rent: $114,000/year net + gst
Outcome: sold for $2.05 million at a 5.6% yield
Agents: Adam Curtis & Adam Watton

Birkenhead

65-67 Birkenhead Avenue:
Outcome: passed in at $2.6 million
Agents: Damian Stephen & Adam Curtis

Rosedale

8 Arrenway Drive:
Outcome: no bid
Agents: Matt Mimmack & Laurie Burt

36 Tarndale Grove:
Outcome: withdrawn from auction
Agents: Matt Mimmack & Ashton Geissler

18 Triton Drive, unit H1:
Outcome: passed in, vendor bid of $900,000
Agents: Terry Kim & Damian Stephen

49A William Pickering Drive:
Features: 368m2 building, 56m2 courtyard, 24 parking spaces, 9-year lease to New Brew bar & restaurant from September 2014 & one 6-year right of renewal
Rent: $123,360/year net + gst
Outcome: sold for $2.265 million at a 5.4% yield
Agents: Ashton Geissler, Ranjan Unka, Damian Stephen & Tony Chaudhary

Sunnynook

318 East Coast Rd:
Outcome: passed in
Agents: Tony Chaudhary & Ranjan Unka

Wairau Valley

20 Link Drive, unit MM:
Outcome: no bid
Agents: Adam Watton & Michael Block

North-west

Henderson

103 Lincoln Rd:
Features: 809msite, 110m2  dwelling converted for office use
Outcome: sold with vacant possession for $1 million
Agents: Tony Chaudhary & James Appleby

192 Universal Drive, unit A6:
Outcome: withdrawn from auction
Agents: Alan Haydock & Cameron Melhuish

New Lynn

76 Delta Avenue:
Outcome: passed in
Agents: Grant Miller & Peter Turner

Te Atatu Peninsula

29 Neil Avenue:
Features: 819mcorner site, 3 retail tenancies – a hairdresser, dairy & chocolate maker – plus vacant 3-bedroom flat    
Rent: $47,650/year net + gst
Outcome: sold for $880,000 at a 5.4% yield
Agents: Tony Chaudhary & Mike Adams

South

East Tamaki

171 Harris Rd:
Outcome: withdrawn from auction
Agents: Jamsheed Sidhwa & Luke Carran

2 Kerwyn Avenue, unit C:
Features: 1149m² industrial unit with access also from Springs Road, 24 parking spaces, seismic assessment of 140% new building standard
Rent: holding income until May of $149,000/year net + gst
Outcome: sold to owner-occupier for $1.7 million
Agents: Tony Chaudhary, John Bolton & Janak Darji

5A Nandina Avenue:
Features: 806m² roadfront industrial unit, occupied by gym for over 25 years, currently on 6-year lease from August 2011 with 2 2-year rights of renewal, 21 parking spaces
Rent: $88,000/year net + gst
Outcome: sold for $1.5 million at a 5.9% yield
Agents: Dave Stanley, Mike Marinkovich, & Tony Chaudhary

Pakuranga, Highland Park

168 Aviemore Drive, unit G:
Features: 314m2 upper level of 2-level commercial building, new 4-year lease plus 2 4-year rights of renewal to Creative Dental Ltd
Rent: $79,020/year net + gst
Outcome: sold for $1 million at a 7.9% yield
Agents: Geoff Wyatt & Nick Bayley

Howick

5 retail units in an established convenience centre at 219 Moore St, Howick, were on Wednesday’s auction list but 3 were among properties withdrawn when the auction ran over time.

219 Moore St, unit A:
Outcome: passed in at $1.135 million
Agents: Millie Liang & Tony Chaudhary

219 Moore St, units B, C & D:
Outcome: withdrawn from auction
Agents: Millie Liang & Tony Chaudhary

219 Moore St, unit E:
Outcome: passed in at $1.15 million
Agents: Millie Liang & Tony Chaudhary

10 Wellington St, unit 8:
Features: 85m² retail unit in The Terraces retail & residential complex, leased to clothing store
Rent: $33,592/year net + gst
Outcome: sold for $470,000 at a 7.1% yield
Agents: Quinn Ngo & Geoff Wyatt

Mangere

17 Airpark Drive, unit 7:
Features: 450m2 modern, high-stud, tilt slab warehouse in Airport Oaks precinct
Outcome: sold with vacant possession for $870,000
Agents: Nick Bayley & Dave Stanley

Manurewa

165 Great South Rd:
Features: 455m2 site, 350m2 retail block with 3 tenants – dairy, hair salon & butcher
Rent: $90,800/year net + gst
Outcome: sold for $1.55 million at a 5.85% yield
Agents: Tony Chaudhary & Piyush Kumar

Waiuku

18 Martyn St:
Outcome: withdrawn from auction
Agents: Tonia Robertson & Tony Chaudhary

South of Bombays

Waikato – Raglan

2 Main Rd:
Features: 1167m² site, BP service station & workshop, 20-year head lease from July 2014 to a wholly owned subsidiary of No 8 Retail Group Ltd, 4 6-year rights of renewal, only petrol station in the town
Rent: $115,000/year net + gst, 4% rental increases every 2 years
Outcome: sold post-auction for $ 2.115 million at a 5.4% yield
Agents: Tony Chaudhary & Janak Darji, Bayleys South Auckland

Attribution: Auction.

Continue Reading

Court baulks at windfall for Te Atatu litigation funder

The Court of Appeal has denied a litigation funder a windfall return in a case revolving around land on the Te Atatu waterfront which the Auckland Harbour Board decided in 1949 should become a new port.

The litigation funder, S40 Ltd, has 10 shareholders headed by interests associated with director David Pritchard, of Otaki. They backed the claim by 13 individuals and the Royal NZ Foundation of the Blind, as successors to the interests of the former 7 landowners.

Mr Pritchard, a former director of Housing NZ Ltd, Port Marlborough NZ Ltd and Wellington International Airport Ltd, has had a wide range of property interests. He became a tetraplegic at the age of 61.

The other director is Brian Fitzgerald, a former director of Strategic Finance Ltd who’d moved on well before its demise 5 years ago. He’s maintained a number of property finance interests, including Mondial Associates Ltd, Triumph Capital Ltd, Wakefield Capital Ltd & Willeston Capital Ltd, and owns a number of interests on Princes Wharf, Auckland, including Euro Bar Ltd, parking & commercial units.

S40 refers to section 40 of the Public Works Act 1981, which requires land taken for a public work but no longer required for that purpose to be offered back to the former owner or successor.

The court found against Auckland Council, the successor to the harbour board, on some central points, but baulked at allowing the windfall, largely because of council input over the last 30 years.

The judges – Justices Rhys Harrison (who wrote the court’s reasons), Christine French & Jillian Mallon – said in their ruling, issued last Friday: “We accept, of course, that the owners have established the council’s breaches of their rights; and that in the normal course they should be vindicated by declaratory relief. But, where the owners’ delay has been prolonged and where the effect of allowing them to assert their rights now would be adverse to the council & its ratepayers, the interests must be balanced.

“In undertaking this balancing exercise we repeat that the purpose of section 40 is remedial, designed to confer a personal, not an economic, benefit on those with an attachment to the land. The effect of the litigation funding arrangements is that, in the event of success, the owners will be bound to transfer the land immediately to S40 Ltd. Precisely what they will receive in return was the subject of some disagreement between the parties at the hearing and in additional submissions filed afterward.”

The harbour board notified the owners of the 7 properties in 1949 that their rural land was within an area designated for the construction & development of port facilities and, over the next few years, the board acquired over 75ha from them. But by the late 1970s it became apparent that the port proposal wouldn’t proceed, and the land was progressively rezoned and used for other purposes. Some is now a residential subdivision, most is within a public park and its potential value for housing is very substantial.

Successors of the 7 original owners applied to the High Court for declaratory relief in 2005. Justice John Fogarty upheld all their substantive claims except on a discrete point of statutory interpretation, which he decided in the council’s favour. As a result, the owners’ claims failed.

The Court of Appeal disagreed with Justice Fogarty’s conclusion on the point of statutory interpretation, but otherwise agreed with his dismissal of the council’s defences other than on the standing of 3 owners to sue. As a result, 4 of the 7 owners satisfied the legal elements for their claims.

And then came the crunch: “The final & ultimately decisive question will be whether we should exercise our discretion to grant the owners’ applications for declaratory relief. In this respect the factors of delay and the nature of the owners’ interests in the Te Atatu land will assume particular importance.

“We agree with Justice Fogarty that as a matter of fact the Gazette notice effectively froze both the market & the price. Allowing the council to rely on circumstances which have arisen in the 13 years between the board’s failure to address section 40(2)(c) in a timely way and the council’s resolution would undermine its remedial purpose and enable the council to benefit from its predecessor’s default. And we add that the council’s reliance in its resolution on the section 40(2)(b) factor – of a significant change in the character of the land for the purpose of the public work for which it was held – could not be sustained where no steps had been taken before 1 August 1983 to develop the land for a harbour….

“We have concluded the board was under a duty from 1 August 1983 to offer back the Williams, Flavell, Robertson & Stewart land.”

The Court of Appeal said it appeared undisputed that the owners didn’t learn of the harbour board’s breach of its section 40 obligation until they were approached by representatives of their litigation funder, S40 Ltd, in the early 2000s. The 2 parties who were earlier aware of their rights were both met by the board’s absolute denial of any obligation or by silence.

“The question is whether, with knowledge of the facts giving rise to a right of action, the owners have by their inactivity placed the council in a position where it would be inequitable or unreasonable if the remedy were later asserted.”

In October 1995, Waitakere City Council had 35ha designated for the Harbour View residential subdivision, some became coastal reserve and the remaining 30ha was designated for a public area. The Court of Appeal said the landowners or their successors should have known by then the council intended to use the land for purposes other than for a port.

The council imposed a special levy to develop the Harbour View–Orangihina Park, which was partially funded by a uniform annual charge raised on all properties in Waitakere City for 5 years from July 2001.

Counsel for the landowners’ successors, Colin Carruthers QC, sought to counter the difficulties the council would now face in transferring the Te Atatu land to private interests and unwinding the formal changes to its legal status, saying the council would always be in a position to reacquire it.

“However, this submission serves to highlight an inequity which undermines the owners’ claims. S40 Ltd, the owners’ litigation funder, would be the principal beneficiary of success. The company would acquire the Te Atatu land at 1983 prices, without any adjustment for the time value of money in the intervening 22 years. Inflation over this period, and the rapidly increased demand for land for residential purposes, mean its 1983 value is a fraction of its current market worth. On one estimate, the value of the Te Atatu land as a whole is about $50-70 million. To allow the owners, or more particularly S40 Ltd, to take at the council’s expense the benefit of windfall profits attributable solely to extraneous factors would be contrary to the policy underlying section 40.

“We accept, of course, that the owners have established the council’s breaches of their rights; and that in the normal course they should be vindicated by declaratory relief. But, where the owners’ delay has been prolonged and where the effect of allowing them to assert their rights now would be adverse to the council & its ratepayers, the interests must be balanced.”

The court understood the owners would receive payments in the range of 2.2-4.4% of the current land values (except for the Royal Foundation of the Blind, which was entitled to a larger sum, and David McCormick who would receive a fixed sum of $2 million). “On the other hand, as well as expressing disagreement with some of these calculations, Mr Carruthers emphasised alternative options for the owners under the agreements. Among them are settlement and acquiring shares of an equivalent value in a landholding company under S40 Ltd’s primary control. He also criticised the council’s valuation figures as misleading.”

Out of that, the court said these disputes were beside the point “because, even on Mr Carruthers’ approach, which results in a higher proportion of the land’s current market value going to the owners, the evidence establishes that S40 Ltd has the predominant interest in this litigation and that it is solely of a financial nature….

“However, the change would ultimately be one of degree only. Critically, S40 Ltd would still obtain a substantial windfall attributable to the relentless effects of inflation on land values in West Auckland since 2005. And the council would remain both exposed to a corresponding financial burden and vulnerable to losing the amenity value of the Te Atatu land. These factors would remain decisive against the owners’ amended position.”

The court said in its conclusion: “It is now too late to require the council to offer the Te Atatu land or part of it back to the owners. While the large balance not developed for housing still retains its original physical character, this area as a whole now has an obvious amenity value to the general public, to which local ratepayers have contributed by paying special levies. This value would be lost if the land reverted to private ownership and was later rezoned for development.

“By comparison, the owners would not lose the right which section 40(2) was designed to recognise – they have no personal interest or attachment to the land. Their only interest, or more particularly that of their litigation funder, is financial in nature.

“The owners seek recovery of the land for a windfall profit at the council’s expense in circumstances where the law assumes they have already been fairly compensated for the loss of their land; and where a declaration would effectively grant them a financial remedy which would otherwise be time-barred. The litigation funder would be in a real sense the ultimate beneficiary of the owners’ success.”

Because the court devoted much of its judgment to addressing some defences the council raised – “which, on an objective appraisal of the High Court judgment and the previous judgments on its unsuccessful application to strike out, should not have been pursued on appeal” – no order was made for costs.

Links: Court of Appeal judgment, Charles William Williams And Ors v Auckland Council
Media release

Attribution: Judgment, Companies Register.

Continue Reading