Affordable entry to booming Mt Maunganui

3:43 PM Friday February 1, 2019 True Commercial

Unit G, 314 Maunganui Rd, is indicated below by a blue border. Photo / Supplied

Agents say a high-profile office-retail unit at the gateway to the Mount Maunganui’s hospitality strip could provide an affordable entry to the booming location.

Colliers International Tauranga’s managing director Simon Clark says the 120sq m unit is on the ground floor of a modern, mixed-use development, a short walk from the Mount’s cruise ship terminal.

Unit G, 314 Maunganui Rd is scheduled to be auctioned at 11am on February 21, unless sold earlier.

Recently leased to a long-term tenant who fell in love with its street appeal, Clark says the unit has the bonus of covered on-site car parks.

“It could be either a great first-time commercial property investment or addition to an existing portfolio.

“This is a good opportunity to purchase an affordable retail and office investment in one of New Zealand’s most highly sought-after commercial locations.

“Built in 2006 and recently refurbished, the unit is part of a four-level complex with office and retail on the ground floor, first floor offices, and apartments on the upper floors.

“The property has six covered car parks, three of which are leased by the tenant, with the remainder on vendor leaseback.

“The successful bidder will benefit from long-term rental income as well as the solid capital gains in this tightly held beachside commercial location.

“Opportunities like this are rare in such a great downtown Mount Maunganui location.”

The Commercial Business zoned property faces north onto Maunganui Rd with a wide retail frontage and central doorway. It can also be accessed from the rear, where the tenancy has a single covered car park, complemented by an additional five spaces in the secure basement car park below.

The high-stud carpeted unit has suspended ceilings, LED lighting, air-conditioning, internal partitioning and a toilet/kitchenette.

Part of a complex fully managed by a professional body corporate, it earns $49,800 plus GST in net annual rent. Tenant Freshmax NZ Ltd is signed to a new six-year lease earning $45,800 plus GST in rent, with reviews to market every three years. Two rights of renewal of three years each extend the final lease expiry to November 2030.

Three car parks on vendor leaseback earn $3900 plus GST in net annual rent. The new owner will have the right to cancel the leaseback, offering scope for uplift.

Colliers’ Duncan Woodhouse says the location — on the corner of Maunganui Rd and Rata St — is at the gateway to the main retail hospitality area.

“The Maunganui Rd frontage benefits from a high number of passing vehicles and pedestrians travelling north and south. In the summer, hundreds of thousands of local tourists are attracted to the Mount for its beaches, walks up and round Mauao, cafes and so forth.

“More than 200,000 international tourists come into the Port of Tauranga on cruise ships and spread out along the retail strip.”