New Plymouth buildings hit the market as yields rise

A large commercial building in New Plymouth is up for sale, following in the wake of another nearby sale which broke records earlier this month.

Tenders close on 311 to 315 Devon St East on December 9, a property described as having plenty of added-value potential while still generating an income.

Another two in close proximity sold for $1.2 million at auction this month, stoked by increased interest from northern investors.

Zoned 'Business B', Bayleys Taranaki agent Alan Johnston said 311-315 Devon St East property was currently split into four tenancies. 

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Its ground floor had an office tenant, with a retail showroom and residual office suite and another office suite on the first floor.

The 1611 square metre site offered generous parking and was extensively refurbished in 2008, "making it an attractive business space with modern amenities, glass frontage and air conditioning," Taylor said.

"The flexible 'Business B' zoning permits a range of commercial and business uses, as well as some residential, leaving options for the new owners to reconfigure, add value or occupy."

Of the two other properties sold along the street this month, 79-87 Devon St East sold below its capital value of $1.91m because of seismic issues.

The 1969sqm site comprised of more than five rental spaces on two freehold titles, and offered first floor office suites, warehouse storage and 14 carparks.

The second property at 137 Devon St East achieved a 6.86 per cent yield, the best ever achieved for a New Plymouth commercial property, Taylor said.

"We've usually seen yields in double digits but they've been slowly coming down," he said, due in part to "excursions from the north," meaning Aucklanders looking outside their region for better investments.

Tenanted to Cash Converters, 137 Devon St East offered prime retail, showroom, mezzanine and basement storage space including seven carparks.

With tourism in Taranaki also on the rise, Taylor said commercial property opportunities in New Plymouth were becoming much more appealing.

Last month the region recorded a new record median sale price for housing, and was praised as the 'second best travel region in the world' by the Lonely Planet Guide.






 - Stuff