Brokers are calling a freehold property on top of one of Tauranga’s most prestigious and modern office buildings an investment that ticks all the boxes.
Colliers International brokers Simon Clark and Duncan Woodhouse are marketing the office investment with a strong tenant covenant, for sale via deadline private treaty due on 3 November 2016, unless sold prior by negotiation.
The property is tenanted by legal firm Holland Beckett which is on a new nine year lease term with four additional three-year rights of renewal. It currently returns a total rental income of $453,371 plus GST and OPEX, and includes three yearly market rent reviews.
“This premium 1284 sqm investment - plus large outside deck areas - is situated on the top two floors of the building and includes 27 basement car parks and 68sqm of basement storage. The property offers commanding views to the Mount, the inner harbour and back to the Kaimai Ranges,” says Clark.
The building comprises an A grade fit out throughout the building with top level reception space, meeting rooms and expansive deck area for staff and clients. “This central location is very close to the heart of Tauranga CBD. Cameron Road is the main arterial route travelling from the south end of Tauranga to the northern end,” says Woodhouse.
Holland Beckett’s lease agreement includes a nine year lease period, with rights of renewal. The firm also pays all outgoings, including contributions towards a building maintenance fund. “This is a top legal tenant, with personal guarantees in an A grade office space. Each floor provides great views and the deck on the top floor reveals a stunning aspect of the Tauranga’s cityscape,” says Clark.
Cameron Road has become Tauranga’s new premium office strip with banks, legal services and government departments all moving to the location in the last few years and includes the headquarters for BNZ, ASB, Westpac, ANZ and the IRD.
“The property has a café Sierra on the ground level for staff and clients to enjoy, as well as excellent on site and street car parking for ease of access,” Clark says.
“Tauranga is one of New Zealand’s fastest growing areas and strategic investment assets are poised to rise in value. The city’s vibrant beach destination on the east coast of the North Island is a hot tourist spot, and boasts enviable natural settings along with the country’s largest port,” Woodhouse points out.
Holland Beckett, which has been occupying the premises since it was constructed in 2008, specialises in a wide range of legal matters including wills and trusts, asset protection, commercial business, property, environmental and family law.
The prestigious law firm has offices all over the Bay of Plenty such as Rotorua, Whakatane and Opotiki and employs 85 staff and 42 lawyers.
Last year, Tauranga’s population grew by 2.3 per cent, and the surrounding Western Bay of Plenty by 2 per cent. Tauranga’s population grew by a staggering 10.5 per cent between the 2006 and 2013 census, and houses 2.7 per cent of New Zealand’s total population.
“Tauranga’s projected to nearly double over the next 30 years, which is going to bring a wave of new business and social activity here. This is one of New Zealand’s premier cities and it is exciting to see it positioned for such positive momentum,” says Clark.
During this period, the catchment population within the Tauranga area is projected to grow at a significantly higher rate of almost 50 per cent compared to the Bay of Plenty region at 22.8 per cent, and the New Zealand total at 32.9 per cent.
The Port of Tauranga is only eight kilometres from Tauranga CBD which is considered the largest in New Zealand by volume.