A brand-new Papamoa health and wellness centre and a substantial Whakatane industrial facility are for sale with new 10-year leases and locked-in rental growth.
Both properties are well located within the fast-growing Bay of Plenty region, which continues to attract investors from throughout New Zealand.
They are being marketed for sale individually by Rich Davidson and Simon Clark of Colliers International Tauranga, with offers by way of deadline private treaty closing at 4pm on Thursday 10 December, unless sold prior.
Davidson says both properties are very different propositions but each offers a range of sought-after investment fundamentals.
“With long lease terms, fixed rental growth, modern buildings and excellent tenant covenant, both of these properties will appeal to investors seeking a long-term passive investment in a growth region.”
The health and wellness centre at 56 Ashley Place, Papamoa, is a new facility that has just opened to critical acclaim. It comprises a high-spec, 620sq m building on 2,105sq m of freehold land with 39 on-site car parks.
The property returns $176,700 plus GST and expenses in net annual rent, with fixed annual rental growth of 2.5 per cent throughout the 10-year lease term.
Davidson says the property is ideally situated in the seaside Tauranga suburb of Papamoa.
“It is well positioned to cater for the substantial local population, which continues to grow as more and more houses are constructed in the area.
“The property comprises a quality modern facility, occupied by a very experienced operator who has spent a significant amount on the internal fit out.
“Facilities include three large studios – MindBody, Movement and Performance – suitable for yoga, pilates, high-intensity interval training and boxing.
“In addition there is a smaller studio for personal training sessions, an infrared sauna, four separate consultation/massage rooms and male and female changing rooms.
“The site also provides room to further expand the building footprint to meet the tenant’s future needs.”
The property at 68 Mill Road, Whakatane, comprises two substantial industrial buildings, including a state-of-the-art truck testing and maintenance service centre that was newly completed in 2016. The more established building is mostly a local Bridgestone tyre fitting and sales outlet.
Clark says the property provides a net lettable area of 2,406sq m on a 1.68ha freehold site spanning two titles.
“Industrial is a sought-after asset class that has remained popular throughout the economic uncertainty of 2020.
“The property for sale is occupied by an established tenant, East Coast Heavy Diesel, which has just taken up a new 10-year lease with further rights of renewal.
“The lease returns $285,000 plus GST in net annual, with fixed annual rental growth of CPI plus 1 per cent.”
Clark says the property is well situated on a large corner site in the Eastern Bay of Plenty centre of Whakatane.
“Both buildings are surrounded by substantial sealed yards, allowing excellent truck storage and ease of access in and out of the buildings.
“In addition there is a 4,600sq m site at the rear of the property which upon settlement will be on its own title.
“This could allow future expansion for the current tenant, or it could potentially be on-sold or redeveloped for a new tenant to provide additional income.”