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Attended the Fraser Cove and Westgate Bayleys Auction today. I'm sure the full results will come through in due course, however by my count only 8 of the 28 units up for auction sold under the hammer.
Additionally the yields were almost sensible in comparison to previous auctions, small lots were still low 6%, bigger units were mid 7%. Almost where they should be.
Having said that, the units up for auction weren't exactly blue chip. Still, I wonder if the heat is coming off this sector?
Having said that, the units up for auction weren't exactly blue chip. Still, I wonder if the heat is coming off this sector?
What exactly is a blue chip tenant?
When Bob Jones leased levels 12 and 20 of his Qantas House in Queen Street to Mark Bryer in 2005, was he thinking that he had a blue chip tenant? Or did he know he would be chasing after Bryer just a few years later for unpaid rent?
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Fair call. I guess I was comparing to the Lincoln North auction where the units included from memory three banks and a NZ post on long leases. A little more 'bankable' than Jesters pies and Liquor centres.
When Bob Jones leased levels 12 and 20 of his Qantas House in Queen Street to Mark Bryer in 2005, was he thinking that he had a blue chip tenant? Or did he know he would be chasing after Bryer just a few years later for unpaid rent?
Bob jones said he brought the building already with the scummy mark byers tenant in place. He did not lease it too him.
Attended the Fraser Cove and Westgate Bayleys Auction today. I'm sure the full results will come through in due course, however by my count only 8 of the 28 units up for auction sold under the hammer.
Additionally the yields were almost sensible in comparison to previous auctions, small lots were still low 6%, bigger units were mid 7%. Almost where they should be.
Having said that, the units up for auction weren't exactly blue chip. Still, I wonder if the heat is coming off this sector?
Interesting. Was thinking at least 7.5% for the small ones and 8.5% for the bigger ones.
8 sold under the hammer, 2 prior at Retail Property Group auction
Published 12 March 2010
Bayleys Real Estate sold 10 out of 30 NZRPG Management Ltd (Retail Property Group – Mark Gunton & Bryce Donne) retail outlets offered at auction on Wednesday. Another 3 were withdrawn from the auction schedule.
Yields were strong on the sales – one just under 6% and the highest 7.55% - but there was a noticeable tailing off after the initial handful were dealt with.
NZRPG put 48 outlets at its Westgate centre, at the top of the North-western Motorway, and Fraser Cove in Tauranga on the market as it faced mounting development bills for its newer projects. They include Tauriko Crossing in Tauranga and a major proposal to cross the highway above Westgate to create the 156ha Massey North town centre.
Apart from the auction, a number of properties were put out to tender. Auction details below show the properties grouped under Westgate & Fraser Cove headings and listed in lot number order:
To put up so properties many at any one time was a mistake.
What did sell, sold extremely well, but it would have been better to put up a limited number spread over different auction dates. This sale had the effect of temporarily swamping the market.
Bayleys Retail Auction - Westgate and Fraser Cove
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