Six retail and office units in a new commercial development at Rototuna in Hamilton achieved yields of 6.3% to 7.4% when auctioned by Bayleys Real Estate yesterday.
Another of the units was sold prior to auction and another was passed in.
The units were part of a newly built two level suburban strip complex (pictured) on Thomas Rd that had retail premises on the ground floor fronting a large car park.
They were offered for sale fully tenanted with long term leases in place and the largest unit, leased to restaurant chain Lone Star, sold for $3.3 million while the smallest, leased to a firm of financial advisors, sold for $400,000.
The full results:
- Unit 13. A 585sq m unit with an additional 450sq m outdoor area and three car parks, leased to Lone Star on a 15 year lease with two rights of renewal of four years each. Net rental $233,619. Sold for $3.3 million. Net yield 7.1%.
- Unit 4. A 199sq m unit leased to Liquor land for eight years with three rights of renewal of four years each. Net rental $56,235. Sold for $900,000. Net rental 56,238. Yield 6.3%
- Unit 2. A 104sq m unit leased to Pita Pit and Mizzoni Pizza, with additional income coming from a Westpac ATM. Pita's lease for 10 years with two rights of renewal of five years each, Mizzoni's lease for six years with two rights of renewal of six years each. Sold for $640,000. Combined net rental $44,772. Net yield 7%.
- Unit 3. A 277sq m purchased by a dental practice. Sold prior to auction for $875,000 plus GST.
- Unit 12. A 206sq m unit with 56sq m of outdoor space leased to a cafe for six years with two rights of renewal of six years each. Sold for $1 million. Net rental $71.187. Yield 7.1%.
- Unit 11. A 290sq m first floor office with four car parks, leased to Waibury Management for six years with a single right of renewal for six years. Sold for $835,000, Net rental $60,790. Yield 7.3%.
- Unit 16. An 88sq m first floor office with four car parks, leased to a financial planning company for six years with two rights of renewal of six years each,. Sold for $400,000. Net rental $29,696. Yield 7.4%.