Split risks, rental upsides in Tauranga

A large multi-tenanted property anchored by a leading fencing supplier has gone up for sale in a key Tauranga industrial hub.

The 2400sq m freehold site on Birch Ave in the cityfringe Judea industrial precinct contains multiple warehouse and office premises and an extensive yard. Its five tenancies are fully occupied by Chaytor Fencing Co, a fibreglass manufacturer, signmaking business and an automotive repair and servicing provider.

90 Birch Ave (pictured above) is being marketed by family sales team Brendon, Lynn and Ryan Bradley of Bayleys Tauranga. It will go under the hammer on Wednesday 26 October, unless sold prior. The property generates a total net annual rental income of $87,317 plus outgoings and GST.

Brendon Bradley said the diversity of the tenant businesses would hold special appeal for buyers seeking a quality split-risk investment. “With the premises fully occupied on various lease terms, and with rentals below market levels, there’s a golden opportunity for an addvalue investor to capitalise on future rental upside.”

Lynn Bradley said the 2443sq m site contained buildings with a rentable area of 1059sq m. The balance of the predominantly flat site consists of concrete and paved yard space with 16 carparks.

“The property benefits from a 30m frontage to Birch Ave, while the generous yard areas and parking support the efficient movement of vehicles and goods onto, off and around the property,” she said.

Ryan Bradley said a key attraction was the opportunity to gain a foothold in the Judea precinct, which is in high demand but has very little vacancy. “The site sits in an intensive pocket of industrial development. Industry zoning under the Tauranga City Plan supports wideranging industrial activities – along with ancillary offices and retail, trade and yard-based supplies, and port activities. Birch Ave is a highly convenient location for industrial occupiers.”