Investors unbox warehouse close to port, highways
A high-profile Mt Maunganui industrial property is generating interest among investors with its potential for diversification.
The warehouse on 943sq m of freehold land at 47 Aerodrome Rd is positioned on a high-profile corner close to the Port of Tauranga, Tauranga Airport and main arterial links, including Hewletts Rd.
Bayleys salesperson Rory Brown says industrial vacancy rates in the area are around all-time lows and rental growth is healthy as a result.
“Demand for industrial property in this location is strongly supported by migrationdriven population growth, undersupply of well-located warehousing, and the strength of the Golden Triangle economic area, where approximately 53 per cent of the population is forecast to live by 2048.
“The Port of Tauranga is New Zealand’s largest container port by volume, and adjacency to the subject property provides future development potential as occupiers place high value on warehousing and industrial sites that are secure and easily accessible via key transport links.”
Brown is marketing the property by auction at 1pm, Wednesday March 13, unless sold prior, with colleagues Christy Arundel and Lloyd Davidson.
Totalling 409sq m, the building features 379sq m of high-stud, clear-span warehousing equipped with a two-tonne gantry crane and three roller doors.
There is 30sq m of office accommodation and amenities and an under-utilised yard spanning approximately 534sq m.
Arundel says a spacious yard and dual access from Aerodrome Rd and Cherokee Place provide immediate functionality and scope for future redevelopment, while the gantry crane is a versatile asset for operators requiring heavy-duty lifting capacity.
“Certain industrial processes such as those in manufacturing, construction or logistics may require specialised lifting equipment, and the addition of a gantry crane provides for a more diverse range of industrial activities on the property.
“At the same time, the value proposition is elevated given the current configuration, which could support a multi-tenancy or sublease arrangement, offering an opportunity to generate income while redevelopment plans are put into place.
“Recent organic growth of local homegrown businesses and the relocation of new entrants to the region continues pressure already-constrained supply, making the redevelopment credentials here quite attractive for add-value investors and developers.”
Approximately 6km from the Tauranga CBD and 4km from central Mt Maunganui, the property is well connected to the wider district, which accounts for 45 per cent of regional economic output.
“Mt Maunganui has a strong industrial sector focused around the Port of Tauranga, which has been expanding its freight container storage capacity.
“New developments in Tauriko and Rangiuru near Te Puke continue to attract national and global operators, lifting the broader region’s reputation as an attractive base compared with Auckland and Hamilton,” Davidson says.
“A chronic shortage of land continues to underpin property values. We expect industrial supply will remain tight over the next few years despite future projects concentrated around the Bay of Plenty as the import and export corridor of New Zealand.”