A half-hectare East Tamaki property sold in November 2016 for $560/m² has been resold at $820/m² – a 46% gain in 29 months for a site that’s advanced from bus depot to car sales yard.
A retail development was considered for the site in 2015, and Bayleys Real Estate said after the latest sale the new owner was looking at developing it. In the meantime, it will stay a caryard.
Roy Rudolph, of Bayleys’ East Tamaki office, who secured the latest sale, said the price hike showed the pressure land values were under, particularly in long established industrial locations like East Tamaki, where land available to develop is scarce.
That sale was the cheapest of 4 transactions just signed by Bayleys agents in Airport Oaks, East Tamaki & Mangere.
Combined, the 4 industrial properties changed hands for $41.5 million.
12-16 Brigade Rd:
Features: 1.0491ha site, 4610m² of coolstore & office, distribution centre for My Food Bag, which moved in 18 months ago following a major refurbishment & refit incorporating the latest generation of ‘carbon tax neutral’ refrigeration plant; 9-year lease to 2026, 3 3-year rights of renewal; tenant responsible for all maintenance, repair & replacement of fitout & equipment, including refrigeration plant
Rent: $802,067/year net + gst, fixed annual 2.5% rental increases from October 2020
Outcome: sold for $13.2 million at a 6.08% yield
Agents: Scott Campbell, Jamsheed Sidhwa, James Hill & Nelson Raines
9 Richard Pearse Drive:
Features: 1.7ha site, 5420m² warehouse & office; new 10-year lease to ASX-listed Apollo Motorhome (negotiated by Scott Campbell & Nick Bayley of Bayleys) for vehicle renting & sales; 5000m² grassed area converted to hard stand for vehicle display before Apollo’s occupation
Rent: $888,560/year net + gst
Outcome: sold for $17,386,960 at a 5.11% yield
Agents: Scott Campbell, Nick Bayley & Ash Hira
9-11 Nandina Avenue:
Features: 5104m² industrial landholding, flat site in 2 equal titles, 74m road frontage; currently a vehicle sales yard, previously used as bus depot
Outcome: sold for $4,185,280 at $820/m² to an owner-occupier intending to develop the property, although in the short term it will continue to be occupied by a car sales business
Rent: $145,000/year holding income
Agent: Roy Rudolph
54 Tidal Rd:
Features: 7315m² site, 3600m² of warehousing & office buildings developed in 1980s which have undergone substantial improvements and have seismic assessment of 100% of new building standard; 6 tenancies
Outcome: sold for $6.78 million at a 5.9% yield
Rent: $400,142/year net + gst
Agents: Nick Bayley & Nelson Raines
Attribution: Agency release.