Prime spot, long-term lease in Tauranga
A prominent property on a high-profile corner site in Tauranga’s tightly held Tauriko industrial precinct will appeal to buyers looking to acquire a premier asset with a strong tenant covenant.
2 Taitimu Rd, Tauriko, has 1228sq m of floor area that includes warehouse, office, and showroom space on a 2939sq m Industrial-zoned freehold site.
The property offers dual access, generous carparking and yard areas as well as detailed landscaping.
Designer Homeware, a New Zealandowned and operated wardrobe and storage firm, is the current tenant. It recently began a 10-year lease that returns $219,533 plus GST and operating expenses in annual rental income.
Colliers brokers Rachel Emerson, Grant White, and Rich Davidson are marketing the property for sale by deadline private treaty closing at 4pm on Thursday 15 September, unless sold prior.
Designer Homeware’s lease runs until
2032 and it has two further rights of renewal for five years each leading to a final expiry of July 2042.
Emerson says having an established tenant with a long-term lease at the property will be highly appealing for buyers.
“The occupants have made a substantial commitment to the site given the length of their lease term and there is built-in rental growth with two-yearly market rent reviews in place, which is a strong drawcard for prospective purchasers. The strong tenant covenant adds to the offering, making it a prime passive investment.”
White says the property has been strategically designed to suit a range of uses. “The building has been constructed with style, presence, and sophistication in mind. Given it was built from quality materials, this offering will remain a trophy asset to be proud of for many years to come. The property was purpose-built for the current occupant but if it was to be leased in the future it would be highly desirable for a wide pool of tenants.”
Davidson says Tauriko is sought-after among buyers. “Businesses and investors are drawn to the Tauriko Business Estate for its premier buildings, blue-chip neighbours, and ease of access given the favourable proximity to the motorway network.”