Quality quartet for auction in Tauranga

Four investment properties including a popular Mount Maunganui fish and chip shop will go under the hammer at the latest Colliers International auction in Tauranga.

Each fully tenanted property is at the small to medium end of the market, providing opportunities for investors with a range of budgets.

Simon Clark, Director of Colliers International Tauranga, says there has been plenty of pre-auction interest.

“Among the properties for sale is a small retail unit tenanted by Mount Fish and Chips – a true slice of Kiwiana history harking back to the Mount’s past as a sleepy seaside holiday town.

“This bite-sized property is prominently located on the Mount’s main retail strip, which is one of the most tightly held and desirable places to own real estate in New Zealand, and offers abundant development or add-value opportunities.

“Investors looking for a more affordable investment will have the chance to bid on a suburban retail unit occupied by an established pharmacy for more than 50 years.

“Situated on busy Cameron Road in the heart of the vibrant Greerton township, the property has more than five years remaining on its current lease term.

“The auctions are rounded out by two multi-tenanted, split-risk investment properties – one a modern office and showroom development in Greerton with five established tenants, and the other a dual-tenanted investment in Judea with newly re-signed leases.”

Colliers International will auction the properties at its Tauranga office at 2pm on Thursday 21 November, unless the properties are sold earlier.

The Mount Fish and Chip property at 80 Maunganui Road, Mount Maunganui comprises an 80sq m building on a 94sq m freehold site with commercial zoning.

Colliers Tauranga Broker Duncan Woodhouse, who is marketing the property with colleague Richard Davidson, says the successful bidder will have multiple options.

“The purchaser could take advantage of the site’s obvious potential with a multi-level development. Alternatively, a new owner could land bank for a future cycle while enjoying $28,500 in net annual holding income from a month by month lease.

“There is also an opportunity to refurbish the property to make the most of demand for retail space on the Mount’s thriving and popular retail strip, which is home to a vast array of eateries as well as local, national and international retailers.

“Opportunities like this are as scarce as hens’ teeth.”

The pharmacy premises for auction at 1303 Cameron Road, Greerton, Tauranga comprises a well-maintained 152sq m building on a 166sq m freehold title.

Woodhouse says it returns $27,190 in net annual rent on a six-year lease from December 2018.

“This is a very affordable investment with great on-street parking and excellent exposure to passing traffic.

“The new owner has the future opportunity to negotiate a new lease in 2024 or to even occupy the premises for their own business.

“This is a unique bite-sized investment with very affordable rentals and potential to add value in the future.”

One of the two multi-tenanted commercial properties for auction is a 733.6sq m building on a 1,624sq m freehold site at 39 Waihi Road, Judea, Tauranga.

National tenants Active Electrical Suppliers and Snap Fitness are both longstanding occupiers and have recently renewed their leases.

“This high-profile property offers a split risk to astute property investors,” says Davidson, who is marketing the property with Woodhouse.

“Built in 2004, the attractive modern A-grade building has 24 car parks and huge exposure facing onto Waihi Road.

“The leases return $140,319 in net annual rent, with both CPI and market rental review mechanisms.”

The second multi-unit property at 23 Hynds Road, Greerton, Tauranga comprises a 650.3sq m building on a 1,572sq m freehold site.

The fully tenanted property returns some $117,711 in net annual rent.

“This is a modern, high-quality commercial investment with established tenants and ample on-site car parking on a high-profile corner site,” says Clark, who is marketing the property with Davidson.

“The building was constructed in 2005 and has five tenancies with a mix of office, showroom and some workshop space.

“The property has drive-around access and excellent roadside appeal, as well as being within walking distance to Cameron Road and Greerton township.

“Rarely do such modern, low-maintenance investments come available with the safety of having multiple tenants, but also with affordable tenancy sizes that will remain in high demand to a large variety of tenants.”