Tauriko property has long-term tenant
The majority of the 1.6ha corner site at 42 Taurikura Drive is a secure, fenced asphalt yard - ideal for future development.
A large industrial-zoned property on five titles in a strategic Tauranga location offers buyers immediate security and multiple future options.
The 1.6 ha investment property at 42 Taurikura Drive, within Tauranga’s Tauriko Business Estate, is being sold by deadline private treaty closing 4pm on October 6, 2016.
Colliers’ Duncan Woodhouse, who is marketing the property with colleague Simon Clark, says the combination of an international brand tenant along with future development potential makes for an appealing investment.
“The property, with a substantial office building and prominent, expansive yard, still has nine years remaining on a 15-year lease to Downer New Zealand, so it stacks up as a sound investment opportunity in its own right.
“The probability of future commercial zoning changes to the property within its very fast developing vicinity adjacent to the new Tauranga Crossing Shopping Centre adds a significant future-proofing feature to the investment as well.”
Woodhouse says the majority of the 1.6ha corner site is a secure, fenced asphalt yard providing an ideal blank canvas for any potential future development.
“The remaining nine-year lease to a high profile, established tenant offers both excellent, secure rental income and ample time for new owners to explore subsequent development possibilities across the property’s five titles.”
The property is earning a net annual income of $795,000, with guaranteed annual growth of 2.5 per cent.
Downer is a major provider of infrastructure services in New Zealand including transport, technology, utilities, engineering and construction and has more than 19,000 employees worldwide.
Buildings on site include a 1400sq m modern, two-level office block with a lift, as well as an 1100sq m high-stud warehouse with mezzanine floor and long run iron roof and cladding.
The 1.6 ha investment property is within Tauranga’s Tauriko Business Estate.
Clark says the property’s location within Tauriko Business Estate adjacent to Tauranga Crossing provides unrivalled opportunity and prominence.
“Tauranga Crossing Shopping Centre is a retail innovation for the region with the first stage due to open next month. The 13ha site will eventually accommodate more than 44,000sq m of retail floor space and 2500 car parks.”
Anchor tenants include two of New Zealand’s leading retail brands, The Warehouse and Pak’nSave as well as Noel Leeming and Warehouse Stationery.
“The integrated development makes it the only shopping centre in Tauranga to include both bulk retail and industrial-use activity within its immediate catchment. It will be Tauranga Crossing’s point of difference from other retail facilities in the region.
“The bulk retail zoned land is immediately opposite the property at 42 Taurikura Drive and will be used by bulky goods retail devoted to retailing of large goods like appliances, furniture, and building supplies.
“Given the phenomenal growth and development within the property’s immediate vicinity, anticipated future growth with more commercial use ideally positions the property for substantial development or resale. This is an investor’s chance to establish a significant foothold in the location ahead of those changes,” says Clark.
The property is only 6km to Tauranga’s CBD, and a further two to the Port of Tauranga. It also offers excellent access to all major roadways around Tauranga including State Highway 29 over the Kaimai Ranges to the Waikato business district.
Tauranga is one of New Zealand’s fastest growing cities and constitutes the eastern component of what is considered the country’s economic ‘golden triangle’ — the geographic area between Auckland, Hamilton and Tauranga.
The total Tauranga trade area population for both the business estate and shopping centre is estimated at 257,000, including 116,000 in the main trade area. The retail expenditure capacity of the total trade area is estimated to grow from about $2.8 billion to $4.6 billion by 2026.
The location also includes strong customer and employee catchments. There are 2800 residential sites in The Lakes subdivision right next door, with Pyes Pa settlement just a short drive away and Rotorua only 35 minutes down the highway.