Tauranga foursome among seven for auction

9:55 PM Tuesday February 12, 2019 Colin Taylor

Unit 3 at 525 Cameron Rd, Tauranga, is a first-floor office suite leased to Holland Beckett solicitors. Photo / Supplied

A new industrial property, a prime office premises, a city retail unit with a national tenant, and an add-value redevelopment site are expected to attract strong interest at an auction in Tauranga later this month

The four 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 February 21.

The auction will be held at Hotel Armitage, 9 Willow Street, Tauranga and individual properties may not go to auction if sold earlier.

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.

One is a newly completed industrial facility in Tauranga's fastest growing location, Tauriko. Built in 2018, the versatile 683sq m facility at 87 Paerangi Place comprises a high-stud warehouse plus a two-level office on a 2833sq m freehold site with a large secure yard.

It is leased by long-established Tauranga business, Bay of Plenty Asphalt Limited, on a new eight-year lease earning $102,000 plus GST in net annual rent.

Clark says it makes for an ideal bottom-drawer investment property. “The lease offers guaranteed rent 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 unit. Unit 3 in The Hub on Cameron, at 525 Cameron Road, 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 in 2008 for the law firm which now occupies two and half floors of the strata-titled building.

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Tenant Bayride Motorcycles Ltd has outgrown the premises at 337 Cameron Rd. Photo / Supplied

Unit 3 comprises a 402sq m office suite plus 10 secure basement car parks. The lease earns $152,630 plus GST in net annual rent, with market reviews every three years from October 2020.

Colliers’ broker Rachel Emerson says it’s a chance to acquire a high-specification office investment property in a well-located, low-maintenance modern building.

Another property designated Unit 6, 109 Devonport Rd, is likely to attract investors seeking an affordable CBD retail asset with a national tenant.

The 260sq m unit with two car parks is on an eight-year lease to The Coffee Club and generates $72,828 plus GST in net annual rent. Locked-in rent growth is fixed at 2 per cent annually, with a market rent review upon renewal in February 2025.

Broker Rich Davidson says the freehold 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 Rd 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; while a very large yard at the rear of the 1012sq m freehold site provides parking.

Broker Duncan Woodhouse says the tenant, Bayride Motorcycles Limited, has outgrown the premises and 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 building for their own business, or extensively redevelop the Commercial Business zoned site,” he says.

“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.”

The three other properties which will be auctioned on the same day are:

• Unit G, 314 Maunganui Rd, Mount Maunganui – an affordable showroom and office unit on a high-profile corner at the gateway to The Mount’s hospitality strip;

• 23 Brown St, 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.