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Foot in the Petone market

Foot in the Petone market

Date Posted: Jul 10, 2010

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EIGHT commercial property investments under one roof in Petone could sell for ‘‘well under’’ their government valuations when auctioned on July 29.

The units, at 3-5 Britannia St, are expected to appeal to young investors and first-time buyers because of their affordability, and to experienced and astute investors because of the strength of their tenancies and location.

John Persico and Benet Carroll, of Colliers International, are marketing them on behalf on a local investor.

They believe they could sell from $100,000 to $250,000, even though their government valuations range from $165,000 to $385,000.

‘‘We have had clear instructions to sell the properties and will not be discouraging bidders at any level,’’ Mr Carroll says.

He points out the government valuations are overvalued and probably will be revised downwards when reviewed at the end of the year.

‘‘They’re good investments because there’s nothing around that you can buy for below $250,000.

‘‘It would be hard to find any commercial investment in wider Wellington, if not New Zealand, that’s this affordable.’’

The unit-titled investments are within a two-storey complex in a ‘‘thriving’’ business community park in Petone’s retail and commercial heartland.

Mr Carroll says it accommodates a good mix of professional service businesses, including a law firm, two accounting practices, the New Zealand Firefighters Credit Union, a beauty salon and a yoga workshop.

One of the units is vacant and ready for an owner-occupier to move in. Annual net rentals range from $8250 to $15,400 and the leases are staggered through to June 2013. Built in 1988, the building faces north with a street corner profile and abounds in natural light because of its extensive glass facade.

It fronts on to Britannia St, with pedestrian access to the banks, cafes and public transport on Jackson St.

Being in the vicinity of Jackson St increased the units’ desirability, Mr Carroll said.

‘‘Anything on Jackson St is snapped up straight away.

‘‘It’s become quite a funky place, has a low vacancy rate and is sought after by investors.’’

 

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