Split-risk retail investment in fast-growing Omokoroa

Splitrisk retail investment in fastgrowing Omokoroa  hero

A high-profile retail centre in one of the Bay of Plenty’s fastest-growing coastal communities is for sale with split-risk income from a diverse mix of tenants.

Located only 20 minutes from Tauranga’s CBD, the newly refurbished property at 168 Omokoroa Road occupies a strategic position at the centre of the Omokoroa Peninsula, within the North Island’s growing ‘Golden Triangle’ region.

It is fully tenanted by the neighbourhood’s only gym, a bottle store and three hospitality offerings that are well situated to capitalise on demand from an expanding residential catchment.

Omokoroa has seen rapid population growth in recent years, buoyed by its designation as an area of special housing growth.

Situated on a peninsula that stretches between State Highway 2 and Tauranga Harbour, it offers a mix of established and new residential subdivisions that are serviced by a wide range of amenity.

Gawan Bakshi, Investment Sales Broker at Colliers International, says 168 Omokoroa Road provides an outstanding opportunity to gain a foothold in this fast-growing community.

“This fully leased retail investment is superbly located at the heart of Omokoroa, on the main arterial route linking the peninsula with State Highway 2.

“The property benefits from excellent street profile and is surrounded by a range of complementary businesses, including a FreshChoice supermarket, medical centre, pharmacy, dentist and vet.

“It comprises a 626sq m single-level retail complex on a 2,757sq m freehold site with plenty of shared car parking.

“The buildings were originally constructed as light industrial premises in 1996 and 2002. The first retail element was added in 1999, when the front building was converted to a liquor store.

“More recently, the property was completely redesigned and converted into a convenience retail and hospitality centre.

“The work, completed last year, included four new retail tenancies, new exterior cladding, new internal walls, a large deck, and additional facilities and toilets.

“The end result is a striking contemporary retail centre that has attracted an excellent mix of tenants with very favourable lease terms.”

Colliers International has been exclusively appointed to market 168 Omokoroa Road, Omokoroa, for sale by deadline private treaty closing at 4pm on Thursday 5 November, unless it is sold earlier.

Simon Clark, Director of Colliers Tauranga, says Omokoroa is an excellent location to invest in.

“Surrounded by water and crisscrossed with avocado and kiwifruit orchards, the Omokoroa Peninsula provides an ideal mix of lifestyle and convenience, only a short distance from Tauranga.

“Omokoroa has fantastic amenities including the well-respected Omokoroa Point School, public library, cafes and shops.

“Residents fish or launch from the jetty, kayak, swim safely or enjoy the sporting facilities of a golf club, boat club, tennis club and field sports from the Western Avenue playing fields.”

Clark says the population has grown from 2,547 at the 2013 census to nearer 3,000 after being designated as an area of special housing growth. Expectations are that the population will reach up to 12,000 by 2030.

The property for sale returns some $300,000 in net annual rent plus GST and outgoings.

Shops 1-3 are tenanted by VPT Health Club, which occupies 191.55sq m on a three-year lease returning $72,000. A three-year right of renewal extends the final lease expiry to April 2025.

VPT Health Club is a gym that helps everyday individuals reach their health and fitness goals through education, openness and acceptance. They encourage, motivate and create a friendly environment.

Shop 4 is tenanted by The Address Indian Kitchen, which occupies 93.16sq m on a three-year lease returning $45,000. A three-year right of renewal extends the final lease expiry to June 2025.

The Address is a local Indian restaurant that offers dine-in and takeaway options, attracting high reviews from Omokoroa locals and visitors alike.

Shop 5 is tenanted by Kiwi Liquor Omokoroa, which occupies 166.17sq m on a new six-year lease returning $63,000. Two six-year rights of renewal extend the final lease expiry to September 2038.

Kiwi Liquor provides a good selection of wines, premium spirits and craft beers, and has always maintained a high level of customer service.

Shop 6 is tenanted by The Local Bar and Eatery, which occupies 148.19sq m on a new six-year lease returning $81,000. Two six-year rights of renewal extend the final lease expiry to September 2038.

The Local provides a new and exciting dining experience, with excellent customer service and accommodation for any special requirements.

Shop 7 is tenanted by Neighbourhood Pizzeria, which occupies 27.05sq m on a three-year lease returning $39,000. A three-year right of renewal extends the final lease expiry to October 2023.

Neighbourhood Pizzeria – one of only two pizza restaurants in the area – offers delicious gourmet pizzas, great staff and speedy service with a wide selection of options


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Gawan Bakshi

Broker | Investment Sales

Auckland CBD

Gawan is a solutions-focused and proactive member of the Colliers International Investment Sales team, based in Auckland CBD. He specialises in scouting and matching suitable investment opportunities for individual property owners, family trusts, high profile national property and retail groups. He is the area expert for Mount Roskill, Three Kings, Hillsborough, Onehunga, Mount Albert, and Sandringham with extensive knowledge and local information for each suburb.

Gawan’s Bachelors of Commerce and Bachelors of Property from University of Auckland have equipped him with the technical expertise required to identify the benefits and risks associated with each property and provide reliable and professional advice to his clients. He goes to length to ensure his clients have access to all the relevant information and are able to overcome challenges with his advice, before making a final decision.

Gawan’s thorough understanding of property investment and market conditions, paired with his proficient localised knowledge means he is able to discern every deal carefully on a case by case basis to achieve the best possible outcome for his clients.

Gawan speaks fluent Hindi and Punjabi and understands Gujurati and Urdu, making him an important member of the team with the ability to access and communicate with this growing market audience.

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Simon Clark

Managing Director

Tauranga

Simon is the managing director of the Colliers Tauranga office. With over 28 years in the industry, he is the most experienced and successful commercial broker in the region. He specialises in the sale of commercial and industrial investments as well as the lease of industrial properties. Throughout his long career, Simon has negotiated the majority of the largest transactions  in his chosen market and has delivered in excess of $1 billion in sales.

Simon works closely with other Colliers branches around New Zealand and in Australia to ensure that local investment listings have the best possible exposure nationally and internationally. He also has an extensive local  network including close relationships with private, corporate, Iwi and syndicator investors who come to him for his vast market knowledge and  to ensure they will find the best investment opportunities.

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