Investment in lifestyle oasis whets appetites
A new-build retail asset in the lifestyle centre of Tauranga’s newest regional shopping hub is attracting interest among investors wise to the value of high-calibre tenants and a position in one of the Upper North Island’s most significant growth nodes.
Located on a prominent 16,473sq m freehold site with 120m of street frontage, 19 Taurikura Drive is in an excellent location on the main thoroughfare connecting SH36 with the Tauriko Business Estate.
Bayleys’ national director of commercial and capital markets Ryan Johnson says the large-format property is primed to leverage Tauranga’s status as New Zealand’s fastest-growing city, with superb fundamentals in a location attracting investment from key national and global tenants.
“Substantial developments are reshaping the landscape in Tauriko, encompassing housing, infrastructure and large-scale commercial and industrial projects. The associated capital outlay reflects a high degree of confidence in the area and a case for substantial economic growth.
“Tauranga forms an integral part of New Zealand’s Golden Triangle economic heartland, and the 75,000sq m staged Tauranga Crossing development is set to become a critical regional hub with a total trade area population of 307,170 and retail expenditure of more than $3.16 billion.”
19 Taurikura Drive sits within Stage Two of the Tauranga Crossing lifestyle centre development.
Stage One spans 11,750sq m with bigname tenants including Gilmours, Bed Bath & Beyond and Farmers department store. Stage Two incorporates
9990sq m of large-format retail. Subsequent developments are planned to provide an additional
12,000sq m, bringing the total gross floor area to 23,000sq m.
Johnson is marketing the property for sale by deadline closing at 4pm, Thursday November 30, unless sold prior with colleagues Jason Seymour and Brendon Bradley.
The property comprises 6400sq m of ground-floor retail area and supplementary mezzanine, plus 213 common carparks and access for deliveries via a rear service lane.
Seymour, who is Bayleys’ senior director for capital markets, says the property is fully occupied with long-term lease commitments from ASX-listed home furnishings and appliance retailer Harvey Norman and New Zealand’s largest independent bedding group, BedsRus.
“The two leases generate a combined net passing income of around $1.924 million plus operating expenses and GST, with terms which provide a desirable mix of indexed, fixed and market review provisions.
“The development has been handed over to the tenants for fit-out, with leases commencing in OctoberNovember, allowing investors to purchase a brand-new property with the benefit of long-term income from two revered tenants,” he says.
A fenced and sealed yard at the property’s rear is rentable, with a covered dock area for deliveries.
Bradley, Bayleys’ Tauranga retail specialist salesperson, says Harvey Norman’s decision to lease the site is uncommon, given the business primarily owns and occupies its premises.
“This speaks to a limited availability of Harvey Norman-leased properties, making this particular investment opportunity stand out in a landscape where such leased assets are rare.”
Bradley says the Tauranga Crossing lifestyle centre is set to further benefit from future development and surrounding projects, including large-scale urban development at Tauriko West, The Lakes and the Tauriko Business Park.
The developments are forecast to accommodate 5000 new dwellings and 600 businesses in the medium to long term.
“The Golden Triangle geographical area incorporating Auckland, Hamilton and Tauranga houses 44 per cent of the country’s population and saw 51 per cent of New Zealand’s non-residential building consents issued last year.
“It is a true growth hub in every sense,” Bradley says.
“Benefitting from the superb location, 19 Taurikura Drive provides a unique opportunity to secure a prime asset with revered tenants and strong future growth potential.”