Commercial property sales across New Zealand

A snapshot of recent property sales and yields

Recent retail sales

Neighbourhood shopping centre in Mount Roskill, Auckland

Tenants include Warehouse Group, ANZ, ASB, and Westpac. Sold for $36.75 million at a yield of 7.46%.

Woolworths, Whangarei

Sold on a 10-year leaseback for $19.5 million (registered valuation $19.7 million) at a yield of 7.35% in February 2024, rising to 7.9%. The buyer is a syndicator.

The single asset entity arranged a mortgage of $7.8 million for 2 years at the 90-day Bank Bill Benchmark Rate (BKBM) plus a margin of 2.14%. An additional second mortgage facility of $1.95 million is also available if undersubscribed.

Neighbourhood retail complex in Amberley

Sold for $15.3 million (registered valuation $15.5 million) at a yield of 9% in September 2023.

The complex, constructed in 2014, comprises a Woolworths supermarket and 15 specialty and essential services tenancies.

The weighted average lease term (WALT) is 4.6 years. Woolworths has 5.5 years remaining on their current lease term and accounts for 50% of the income. The buyer is a syndicator.

The single asset entity arranged a mortgage of $6 million fixed at 8.33% for 3 years.

The Warehouse, Cameron Road, Tauranga

Lease runs until 2025 with three further rights of renewal of 4 years each. The sale price was a fraction over $16.2 million, yielding 5.9%.

The buyer is Tauranga City Council, possibly seeing it as a strategic site they want to control.

And closer to home…

Woolworths in Aotea, Porirua

Sold late last year for $14.2 million at a yield of 7%. The 10-year lease started in December 2020, with 10 rights of renewal of 5 years each. Market rent reviews occur every 5 years.

And on a smaller scale…

Noel Leeming retail premises, Cambridge

Lease runs through to November 2026 with a four-year right of renewal. Sale price $1.65

million, yielding 6.5%.

KFC in Kaitaia, Northland

Sold for $1.37 million, yielding 6.4%.

Recent industrial sales

Manukau, Auckland

Large-scale high-quality warehouse constructed in 2022. Leased to an international company for 15 years. Sale price $110 million, yielding 5.9% (rental a whopping $6.5 million plus outgoings).

Manukau, Auckland

An A-grade building close to the airport. Leased to a French multinational dairy group.

New 12-year lease. Sold for $31 million, yielding 5.7%.

Wiri, Auckland

New A-grade industrial building leased for an initial lease term of 10 years to StraitNZ Freight Forwarding. Sold mid-2023 for $27 million, yielding 5%.

Christchurch

Modern warehouse building with site coverage of only 25%. Leased to an ITM operator.

At the time of sale, the current lease term had 3 years to run. Sold for $3.45 million, yielding 5.8%.

Christchurch

Well-presented modern, efficient warehouse with plenty of car parking. Leased to Ecochill (Auckland and Christchurch) for 7 years from November 2022. Sold for $3 million, yielding 5.5%.

And on a smaller scale…

Modern industrial unit, Albany, Auckland

Lease renewed for 6 years last year. Sale price $1.5 million, yielding 6%.

Car Dealership Property, Thames

Site coverage 30%. Current lease term 5 years. Sale price $1.275 million, yielding 5.7%.