Former bank springs into new role
A former bank building transformed into an A-grade regional investment hub is being offered for sale amid market appetite for premises with dynamic workplace design and commercial flexibility.
The landmark building dubbed The Vault occupies 910sq m of freehold land at 53 Spring St, central Tauranga, and is well-positioned to benefit from significant local growth and the evolution of the downtown precinct.
Bayleys Tauranga team members Brendon and Lynn Bradley, Rory Brown and Christy Arundel are marketing the property by deadline private treaty closing 4pm, Wednesday May 29, unless sold prior.
Brendon and Lynn Bradley say the substantial two-level complex is fully occupied by a diverse range of professional tenants, attracted to the premises for its unique business ecosystem.
“The old ANZ Bank building was extensively refurbished in 2018 to provide state-of-the-art office accommodation that includes both open-plan and private workspaces complemented by attractive shared areas.
“A dynamic configuration reflects a commercial shift towards collaboration and flexibility in the workplace, with innovative design emerging as a core pillar for corporates to improve productivity and increase physical attendance following disruption to working patterns post-pandemic.
“This property is well-positioned to leverage these workplace trends, effectively delivering a cohesive business environment that attracts and retains its tenants to provide a stable income for a new owner.”
The Vault features a net lettable area of 749sq m split into eight independent tenancies of between 62-121sq m. The fully occupied office suites are supported by 32 carparks — 18 uncovered and 14 secured in the basement.
“Carparks are like gold dust in the Tauranga City Centre, and these are currently below market rental, providing potential for significant upside for a new owner going forward,” they say. Brown and Arundel say the diverse tenancy roster provides a significant split-risk allure for a new purchaser searching for a proven passive investment.
“The property generates a net annual rent of $337,894 plus GST and operating expenses from tenants with varying lease arrangements, including global accountancy firm EY, national property developer Willis Bond, private equity firm Oriens Capital, a law firm, project manager and the agency behind the original redevelopment, Quayside Holdings.
“Most tenants have held long-term leases, undertaking renewals, demonstrating a high degree of confidence in the property’s ability to attract and retain high-calibre occupants.
“Downtown Tauranga is currently experiencing significant growth and major transformation, evidenced by a wave of both private and public investment that includes a new Tauranga City Council office building, Northern Quarter Building on The Strand, and the landmark Farmers Department Store/Elizabeth Towers residential apartments.”