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58 Kupe Drive, Whitianga
The property
Quick look
With quality investment stock in the coastal settlement of Whitianga on the Coromandel Peninsula tightly-held, it was no surprise to agent Josh Smith of Bayleys Whitianga that buyers swooped on this fully-tenanted modern asset after it was profiled in a recent edition of Bayleys Total Property.
The majority of the enquiry came from out of the area, which is testimony to the power of an aggressive marketing campaign and a lot of hard work behind the scenes, says Josh.
“To get the best result for our vendors, we needed as many eyes across this property as possible to drive competition and to fuel that fear of missing out because opportunities like this are few and far between in Whitianga.
“Having four active bidders in the room on auction day showed us that the marketing had done its job. The successful buyer entity included an Auckland-based investor, and the under-bidder was also from Auckland which proves the impact of the campaign, and supports the fact that regional New Zealand has some compelling investment opportunities.”
Whitianga is a high-growth area where new residential development is progressing at pace, supporting the ongoing viability of the property’s childcare sector tenant, says Josh.
“Investors are increasingly chasing childcare-anchored assets because they tend to be well-located, are well-maintained by occupier businesses, have sound lease credentials, and reliable returns.
“The Kupe Drive property was a standout opportunity and it was a pleasure to take it to the market.”
Bay of Plenty-based vendor Peter McAdam was impressed with the outcome of the sales’ campaign and praised Josh’s attention to detail.
Peter and his family have holidayed in the Coromandel region for 30 years and have watched with interest as Whitianga has evolved.
“Seeing Whitianga develop over that time gave us confidence to purchase the property in 2009, but now with another project underway we decided to sell Kupe Drive.
“We chose Bayleys for two reasons really – their reputation, and the fact that Josh is a specialist commercial property agent based in Whitianga, rather than someone who did a bit of residential and some commercial on the side.”
With interest rates tracking down and positive signs emerging in the market, Peter says they weren’t concerned about the timing of the sale per se.
“While you never know how things are going to go, the strength of the tenant and the attractive terms of the lease underpinned our confidence in the likelihood of a sale.
“Communication from Bayleys was great. Josh was honest and transparent and provided good detail on potential buyers. We were very pleased with the sale price and the whole process was simple and hassle free from our point of view, with a great outcome.”