Retail property offers rental upside and future redevelopment potential
An exceptionally well-located Mount Maunganui retail property is for sale with abundant rental upside and future redevelopment potential.
The single-level building at 134-136 Maunganui Road has excellent frontage to the Mount’s main retail hospitality strip, which enjoys very strong traffic from passing vehicles and pedestrians.
It is fully tenanted by one of the Mount’s most popular restaurants and a Kiwiana gift shop, which together return $92,760 in net annual rent plus GST and outgoings. These rentals have excellent short-term upside as one of the tenancies is well below market.
A new owner has an opportunity to refurbish and strengthen the property to make the most of strong demand for retail space on the Mount’s retail strip.
The leases also contain redevelopment clauses, allowing a new owner to take advantage of the site’s obvious potential for a multi-level development.
Colliers International has been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 20 February, unless it is sold earlier.
Simon Clark, Managing Director of Colliers Tauranga, says the prime Mount location, rental upside and future development potential will be attractive to a broad range of buyers.
“This is an exceptional opportunity to acquire a superbly positioned property in one of the most tightly held and desirable places to own real estate in New Zealand.
“Set in the heart of the vibrant and highly successful Mount retail strip, it is within a short stroll of the iconic ocean beach and peaceful Pilot Bay where cruise ships dock almost every day over the summer.
“The property offers strong rental income from two retail tenants servicing the huge number of national and international tourists who visit this beautiful beachside location.
“The site, with wide street frontage including approximately half of the adjoining side driveway, also offers the future potential of a new three- or four-storey building with a combination of ground floor retail, first floor offices and/or multi-story apartments with breathtaking views of the water and Mauao.
“A new owner also has the potential of a smaller-scale redevelopment keeping the existing building and building apartments over the rear carpark area.
“The property is being offered for sale after more than 40 years of ownership by one family, making this an exceptionally rare opportunity to acquire a tightly held asset in a great location.”
The property is zoned Commercial to its frontage and Residential at the rear. It has a floor area of some 258sq m on a 434sq m freehold site.
Popular Vietnamese restaurant Rice Rice Baby occupies the 108sq m retail unit at 136 Maunganui Road.
Its funky decor, tasty menu and prime location have made it one of the best-regarded restaurants in the Mount. Influential reviews website TripAdvisor ranks Rice Rice Baby second out of the Mount’s Asian restaurants and fourth overall out of the Mount’s 82 restaurants.
The adjoining 150sq m tenancy is occupied by Kiwiana Gift Souvenirs, which provides a range of New Zealand-made products.
The shop is well positioned to take advantage of its location across the road from the i-SITE visitor information centre and the large new public park facility which has recently been fully redeveloped.
Duncan Woodhouse of Colliers International Tauranga says the Mount’s thriving and popular retail strip is home to a vast array of eateries as well as local, national and international retailers.
“During the summer, hundreds of thousands of local tourists are attracted to the Mount for its beaches, walks up and around Mauao, and wide range of retail and hospitality offerings.
“In addition, more than 200,000 international tourists come into the Port of Tauranga on cruise ships and spread out along the retail strip of the Mount.
“With its prime position in a sought-after location, this property is perfectly poised to reap the rewards of the Mount’s booming commercial property market.”
Woodhouse says recent sales suggest there will be strong interest among local, national and international buyers.
He points to the sale of Mount Fish and Chips at 80 Maunganui Road, which recently sold for $2 million, at a record low yield of 1.425 per cent.
“Tauranga/Mount Maunganui’s excellent investment fundamentals make the area hugely attractive to buyers.
“We’re experiencing strong population growth, a booming regional economy and sustained development activity, all of which is helping to drive up property values.”
The latest Colliers International survey shows Tauranga/Mount Maunganui is the top spot in the country for commercial property investor confidence.
The region has maintained first place since the fourth quarter of 2018, when it eclipsed investment hotspot Queenstown for the first time in almost four years.