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Automobile Association office sets new record for Wanganui
Automobile Association office sale sets new record for Wanganui
The sale of Wanganui’s newly-built Automobile Association office has set a new yield record for commercial property in the city.
The 195 square metre single storey building on 367 square metres of land on the corner of Victoria Street in the CBD sold for $970,000 through an auction by real estate agency Bayleys last week – for a yield of 6.6 percent.
Bayleys salesperson Karl Cameron said the 6.6 percent yield was believed to be a record for Wanganui. The listing generated 37 enquires from potential buyers in Auckland, Cambridge, Taranaki, Wanganui, Manawatu, the Wairarapa, Wellington, Nelson, Christchurch and even as far away as Canada.
The Bayleys auction room attracted 11 bidders on the AA site, as well as three telephone bidders. Bidding opened at $600,000. The AA has a nine year lease on the property with two further four-year rights of renewal, and generates an annual rental of $64,250 plus GST.
The successful bidder was a Christchurch investor who bought the property while competing in a charity golf tournament. The bidding spanned three holes of the tournament – which the buyer went on to win.
Mr Cameron said it was heartening to see such investor confidence for commercial premises in the city, and could well spearhead more new builds and refurbishments of other buildings in the central business district.
Mr Cameron said average yield rates for commercial and industrial properties in Wanganui were around the 10 – 12 percent mark.
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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