Bayleys Real Estate has sold a portfolio of four industrial buildings in Auckland and Dunedin that belonged to the Bell Tea and Coffee Company at yields ranging from 5.8% to 7.2%.
The three Auckland properties, which were sold with new 12 year leases, included Bell's head office and tea and coffee production facility at 43 Crooks Rd in East Tamaki, which sold for $10.8 million providing a 5.8% yield. The 5463sq m premises were on a 1.37ha site which included about 4000sq m of vacant land providing future development potential.
Bell's 4175sq m distribution centre at 305 East Tamaki Rd sold for $5 million achieving a 7.2% yield.
Rounding out the trio of Auckland sales was a 1750sq m building on a 3035sq m site at 317 East Tamaki Rd (next door to Bell's distribution centre) which was sold for $2.52 million providing a 6.7% yield. This property was originally acquired to facilitate possible expansion of Bell's plant but is now leased to Eagle Wire Products.
Bell's 2623sq m building at 15 Hope St, Dunedin was sold with vacant possession for $335,000. The building requires seismic strengthening.
Bayleys agent Paul Dixon who handled the sales said the 5.8% yield on the head office complex set a new benchmark for a large industrial property in East Tamaki.
The 12 year leases on the East Tamaki properties ,which included annual rental adjustments to CPI and reviews to market every three years, saw them generate a significant amount of interest from investors.
Separately, a vacant industrial building which required seismic strengthening at 32 Fitzherbert St at Petone in Lower Hutt was sold for $612,000 at Bayleys Wellington commercial property auction this week.
The property had 520sq m of warehouse/office space and a 456sq m sealed yard and dual street frontages and was on two separate titles, giving it redevelopment potential.
Two other commercial properties at 10 Oxford Terrace Newtown and 215 Main St Otaki which were offered for sale at the same auction, were passed in for sale by negotiation.
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