Glass act in Mount Maunganui
Property investors tuned in to the performance of the industrial sector as an asset class and looking for cashflow, will recognise the opportunity presented by a Mount Maunganui offering in a top-performing industrial precinct close to key transport networks.
The high-specification property on a prime corner site fronting Portside and Tukorako Drives was purpose-built in 2008 for its sole occupiers, Metro Performance Glass – one of New Zealand’s leading glass suppliers that has been in operation for more than 30 years.
The property has striking architectural features including expansive glazing, a double-height showroom, large manufacturing space, office amenities on the ground and first floors, and drive-around capability. Reflecting its commitment to the site, Metropolitan Glass and Glazing Limited has invested heavily in plant and equipment and now has a renewed 10-year lease in place from 1 January 2022, with built-in fixed rental growth. The 9,245-square metre site is leasehold, with the ground lease owned by well-known entity Quay Lease. Their Bay of Plenty portfolio comprises more than 17 hectares of pivotally-located commercial and industrial property close to Tauranga Airport and Port of Tauranga.
The 4,495-square metre building is owned by Coastal Properties Tauranga Limited. The offering is being marketed for sale by Deadline Private Treaty closing Thursday, 16th September, unless sold prior, by Tom Davison, Bayleys South Auckland and his colleague on the ground in the Bay of Plenty, Myles Addington of Bayleys Tauranga.
Davison said astute and seasoned investors will understand the dynamics of leasehold property and the part it can play in a well-balanced industrial/commercial portfolio. “Cashflow is central to this proposition and with the national industrial market fairly constrained stock-wise, and yields contracting as a result of strong competition, investors are broadening their search for returns. “This well-performing leasehold opportunity with a new occupier lease in place and a perpetual 20-year ground lease providing certainty, will resonate with savvy investors looking to cement a presence in the sought-after Mount Maunganui market.
“With yields in most main centres around the country now compressed to sub-four percent, investors will recognise the advantages of this much-higher returning proposition.” Addington said the Bay of Plenty industrial market, and in particular, the hotly-contested Mount Maunganui precinct, is experiencing supply-demand pressures just like the rest of the country.
“There’s always a scramble when property becomes available in Mount Maunganui and for Metro Performance Glass, this location has been pivotal to its continued success and growth ,” he said.
“With the construction sector experiencing huge growth largely on the back of residential intensification in many parts of the country, Metro’s manufacturing facility at the Mount has the capacity to back-feed Auckland demand, proving the strength of the Golden Triangle dynamic. “Recognising the strategic nature of the Mount Maunganui site, Metro has renewed its lease ahead of time, committing to a new 10-year term with fixed annual rental growth and a further 10-year right of renewal.”
Portside Drive is in the heart of a busy light-to-medium industrial and commercial precinct at Mount Maunganui that includes high-profile national occupiers like Scania, Performance Diesels, Power Hydraulics, and PBT Group. The subject property has streamlined access and car parking for staff, along with excellent manoeuvrability capacity for heavy vehicles.