Cool store hot investment opportunity at Mount
The land and buildings of a cool store facility in the Mt Maunganui industrial precinct offers prospective purchasers the opportunity to acquire a prime asset with favourable proximity to the port in a sector that continues to experience ongoing demand.
21-27 Mark Rd and 6 York Ave is home to Realcool, cold storage specialists who are the long-term occupants of the property that has
5722sq m of total floor area on a 7369sq m freehold site.
The property is being offered as a sale and leaseback. Realcool has agreed to a new 12-year lease term that will begin on 1 November and offers four rights of renewal for six years each, leading to a final expiry of 31 October 2058.
The new lease agreement will provide $1,090,000 plus GST in annual rental income, while there are 3 per cent annual increases included with further market reviews on renewal, as well as the tenant paying all the usual outgoings, including the full maintenance/ replacement of the refrigeration equipment.
The highly visible corner site offers excellent vehicle access and is in the heart of Mt Maunganui’s industrial hub. The Port of Tauranga is approximately 500m away, offering convenience and easy connectivity for the occupants.
Colliers brokers Simon Clark and Rob Schoeser are marketing the property for sale by deadline private treaty closing at 4pm on Thursday 3 November, unless sold prior.
The main building is a predominantly highstud freezer space with associated plant, storage, and loading areas. Each of the four main freezer spaces are very high stud with internal racking and stacking systems.
The freezers have been recently upgraded for specific export and import requirements and there has been considerable investment in upgrading refrigeration equipment to ensure ease of use and less time spent on repairs.
The property also includes an office and administration building on the corner of Triton Ave and Mark Rd, while a catering and food preparation company subleases a further building on the site.
Clark says a purchasing opportunity with a strong tenant covenant such as this one is a rare find. “Realcool has a long-term view of this facility and their commitment to a lengthy new lease is testament to that.
“Cool storage is in high demand in this tightly held location and investing in an existing facility is much more economically viable than building a new facility from scratch.
“The site is also fully consented to export goods to China, which is extremely hard to obtain and has been incredibly valuable for the current occupants.”
Schoeser says the strategic location is highly desirable. “The property is accessed via Totara St to the west and Hull Rd to the north, which allows easy access to all parts of Tauranga, Mt Maunganui and Papamoa.”