Buyer for Gisborne property was close to home

The Property
- Modern warehouse property with two roller doors
- 2,698sqm site
- 589sqm building area, including a 70sqm mezzanine with offices and staff amenities
- Zoned Rural-Industrial A
- Located 400 metres from State Highway 2 and State Highway 25
- Sold with vacant possession

Quick Look
- National Total Property marketing campaign – for sale by tender
- Strong enquiry levels from investors on Bayleys’ databases and directly off the Total Property magazine
- 31 interested parties, with 19 sets of tender documents requested
- Multiple tenders submitted
- SOLD for $1,250,000
- Purchased by a neighbour

The Story

The amount of interest received on this property was encouraging, considering New Zealand was knee-deep in the global pandemic environment and no-one was quite sure how thongs would play out.

Mike Florance of Bayleys Gisborne said as it transpired, the commercial and industrial market in the region remained robust with agents leasing property “flat stick” and anything coming up for sale attracting huge interest.

“It’s really heartening to see the confidence being displayed in the region and in the commercial/industrial sector in particular,” he said.

“Because of its strength in the primary industries, Gisborne has its own economic bubble that barely skipped a beat during the lockdowns and restrictions arising from COVID-19 measures.

“Horticulture, agriculture, logging and fishing are all pumping here and property that is related to these industries is also doing very well.”

This versatile industrial-zoned property in Saleyards Road had widespread appeal given its flexible layout and add-value potential for anyone requiring additional workshop or yard space.

“After an active campaign, the eventual buyer was a neighbour who had earlier expressed an interest in acquiring the property.

“The tender process extracted a big spread of values from prospective buyers and the defined timeline for sale created heightened competition.

“This resulted in people having to put their very best foot forward dollar-wise and the final figure attained was well beyond the original offer made.”

Florance expects the Gisborne commercial and industrial property market to remain tightly-held on the back of the region’s production and trading credentials.

“Out-of-town buyers are also now seriously looking Gisborne’s way, as yields are compressed in larger markets and metropolitan areas.”

Vendor Comment

The vendor, Michael, says his confidence in the Bayleys’ team gave him no qualms about marketing the property during pandemic times.

As an equity partner in a honey extraction operation, Michael has owned the property since 2012 and a decision to downscale the business meant the property was surplus to requirements.

“I had full confidence in Mike and the Bayleys’ team as they are reputable and professional so if anyone could get a deal across the line, they could,” he said.

“I wasn’t nervous about the outcome at all as Gisborne has performed well throughout COVID-19 and there’s not been a lot of industrial property for sale recently.”

Michael said the tender process went very well from his perspective and showed that potential buyers are prepared to up their offers when they know there’s other genuine interest and competition.

“It also showed to me that the first offer is not always the best offer.

“The eventual sales’ price came pretty close to the upper end of my expectations so, yes, I was very happy with the outcome.”

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