Industrial, office and retail offerings among seven properties for auction in Tauranga
A brand new industrial property, a premium office investment, a CBD retail unit with a national tenant, and an add-value redevelopment site are expected to attract strong interest at auction next week.
The “formidable foursome” will be among seven properties to go under the hammer at Colliers International’s first Tauranga auction of the year, to be held at 11am on Thursday 21 February.
Simon Clark, Managing Director of Colliers Tauranga, says all seven properties will appeal to a broad range of buyers, from local investors through to national portfolio holders.
“Commercial property in Tauranga and Mount Maunganui is doing phenomenally well as our population keeps growing and development activity continues apace.
“A recent Colliers International survey shows we’re the top spot in the country for commercial property investor confidence, eclipsing Queenstown for the first time in almost four years.
“With limited opportunities to secure top-notch investments, we expect all the properties for auction next week to generate considerable interest.”
Among the properties on offer is a newly completed industrial facility in Tauranga's fastest growing location, Tauriko, pictured above.
Built in 2018, the versatile 683sq m facility at 87 Paerangi Place comprises a high stud warehouse plus a two-level office on a 2,833sq m freehold site with a large secure yard.
It is tenanted by long-established Tauranga business, Bay of Plenty Asphalt Limited, on a new eight-year lease returning $102,000 plus GST in net annual rent.
Clark says it makes for an ideal bottom-drawer investment.
“The lease offers guaranteed rental growth every two years, plus market reviews on renewal, while maintenance costs will be kept to a minimum due to the brand-new construction.
“This is an excellent opportunity to acquire a solid passive investment in a high-growth, low-vacancy area.”
Investors looking closer to Tauranga’s CBD have the opportunity to bid on a premium ‘Golden Mile’ office investment.
Unit 3 of The Hub on Cameron, at 525 Cameron Road, pictured above, is a first-floor office suite on long-term lease to the building’s anchor tenant, Holland Beckett Solicitors.
The prime office building, with its striking green glass and polished concrete exterior, was purpose-built for the law firm in 2008.
Holland Beckett has grown from 38 to 115 staff since then, and now occupies two and half floors of the strata-titled building.
Unit 3 comprises a 402sq m office suite plus 10 secure basement car parks. The lease returns $152,630 plus GST in net annual rent, with market reviews every three years from October 2020.
Colliers Broker Rachel Emerson says it is a chance to acquire a high-specification office investment in a well-located, low-maintenance modern building.
“You can just sit back, take this substantial rental income and enjoy the long-term benefits of having such an attractive office suite in one of Tauranga’s premier office buildings.”
Investors seeking an affordable CBD retail asset with a national tenant will likely be interested in Unit 6, 109 Devonport Road.
The 260sq m unit with two car parks is on an eight-year lease to The Coffee Club, returning $72,828 plus GST in net annual rent.
Locked-in rental growth is fixed at 2 per cent annually, with a market rental review upon renewal in February 2025.
Rich Davidson of Colliers says the property is strategically located opposite the new Farmers development which will include four levels of retail plus parking and more than 100 apartments.
“With its modern internal fit out, great mix of indoor and outdoor areas, established tenant and growth location, the unit for sale is an ideal passive retail investment.”
A nearby property at 337 Cameron Road will likely appeal to investors and developers looking for more of a hands-on opportunity.
The two-level, 477sq m building comprises a street-level showroom and a downstairs storage and workshop area.
A very large yard at the rear of the 1,012sq m freehold site provides ample parking.
Colliers Broker Duncan Woodhouse says the tenant, Bayride Motorcycles Limited, has outgrown the premises.
They would either commit to a long-term lease if the building was to be extended, or vacate with three months’ notice.
“This provides scope for a new owner to expand and re-lease, use the existing building for their own business, or extensively redevelop the Commercial Business zoned site.
“Sites of this size and profile rarely come available, particularly with the flexibility of a short-term lease, good holding income and the opportunity for multi-level development.”
Three other properties will also be auctioned on the same date:
- Unit G, 314 Maunganui Road, Mount Maunganui – an affordable showroom and office unit investment on a high-profile corner at the gateway to The Mount’s hospitality strip;
- 23 Brown Street, Tauranga – a versatile standalone office and showroom property on Tauranga’s city fringe, which is for sale with vacant possession, and;
- 49-51 The Strand, Tauranga – a newly completed, four-level hospitality and office building, fully leased to four long-term tenants and offering stunning waterfront views.
The auction will be held at Hotel Armitage, 9 Willow Street, Tauranga. Individual properties may not go to auction if sold prior.
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