Strategic acquisition of Kāpiti site

The Property
• Fully-tenanted 620sqm two-level commercial buildings, originally dating back to the late-1950s with extensions made in the late-1960s
• High-profile, freehold, 1,012sqm corner site
• 35 percent seismic rating
• Dual street access and 20 on-site car parks
• Tenants on varying lease terms
• Returning net income of $91,292 per annum plus GST per
• Zoned Commercial Mixed Use

Quick Look
• National Total Property marketing campaign – by auction
• Interest generated via Bayleys’ databases and Total Property magazine
• Strong enquiry from mainly local buyers with some interest from national fast food brands
• SOLD under the hammer for $1,600,000 at a 5.7 percent yield
• Purchased by Kāpiti Coast District Council

The Story

A sizeable commercial property with favourable zoning in Paraparaumu created a flurry of interest when it came up for auction in late-2021.

Mike Kuiper, Bayleys Wellington Commercial says the Amohia Street offering resonated with a range of prospective buyers including investors and developers who recognised the potential for the site in the future.

“The Kāpiti Coast District Council’s draft blueprint sees Paraparaumu as the Kāpiti Coast’s main city centre and this corner site clearly represented a great opportunity.

“While fully-tenanted and returning a good income, the property would require some upgrading and strengthening work down the line, so the underlying land is where the real value exists.”

Located opposite two service stations, close to Coastlands Shopping Centre, the Kāpiti Expressway, and the rail network, Mike says the property’s Commercial Mixed-Use zoning would allow creative future options.

“The successful bidder at auction was ultimately Kāpiti Coast District Council and on its website, it explains that the acquisition was a strategic purchase to support the growth and development of central Paraparaumu,” he explains.

No decisions have been made about how the property will be used, but the Council says it will likely be included in the next Long-term Plan.

Vendor Comment

Vendor John Harris said having an auctioneer who accurately “read the room” on auction day was the key to a better-than-hoped-for result under the hammer.

Having owned the well-performing property for 14 years, and with a new direction in mind, John says the time was right to sell the property and to capitalise on a strong commercial market on the back of potential future growth in the area.

“The property served me well in the time that I owned it, and with the Kāpiti region destined to evolve further thanks to infrastructural and residential expansion, I thought it was a good time to sell.

“It was important to me to be kept up-to-speed throughout the marketing process and Mike – who is based on the Kāpiti Coast – had his finger on the pulse.

“He always listened to what I had to say and kept me informed about interested potential buyers.”

John says his expectations were exceeded on auction day.

“The auction was a great success with the price achieved beyond my hopes, and all due credit goes to the Bayleys’ auctioneer who read the room astutely and ultimately got a great outcome.”

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