New trades-based units for sale

A multi-tenanted purpose-built property for trades-based businesses in the heart of Coromandel Peninsula's industrial area is on the market for sale.

Recently developed and built to 100 percent of New Building Standards, the property at 46 Kopu Road, Kopu has 876sq m of warehousing and office space split into five tenancies, with a three-bay warehouse and attached office on a shared yard.

The property, developed four years ago, sits on a 3,635sq m industrial site. It is now being marketed for sale by auction on October 31 through Bayleys Waikato salesperson Josh Smith, who said the building fills a hole in the market for trades-based units with small offices servicing the Coromandel Peninsula and Hauraki Plains.

Each of the tenancies has a warehouse and small office on the ground level and a further office and staff facilities on the upper level returning a combined yearly net rental of about $110,000 plus GST.

Mr Smith said the ground floor can be used as a workshop, showroom or storage space, with the upper level giving privacy for staff, offices or a meeting space for clients.

Anchor tenants are Totalspan Steel Buildings which has grown into two units for its Coromandel head office and Higgins at the rear. The Manawatu-based company, now owned by Fletcher Building, arrived at the development after it won a roading contract for the Coromandel. There are three other units leased to local businesses.

The rest of the property is a metaled yard with dual entrance ways and drive through access for ease of business operations. Customer and staff parking is at the front of the units.

The modern units are constructed of hard wearing materials including a Coloursteel exterior, concrete ground floor and aluminum joinery.

Mr Smith said while the units cannot become a live/work arrangement, they are the right setup for a variety of businesses and are in high demand as there are limited small trades units available on the Coromandel. “If a unit becomes available tenants are lining up.”

Higgins Group Holdings signed a six year tenancy in October 2017 with three one-year rights and renewal and paying annual rent of $29,000 plus GST, while Wilmac Investments trading as Totalspan & Doors took up a three year tenancy in June this year with two two-year rights of renewal and paying yearly rent of $36,600 plus GST.    

Of the other three tenancies Marine Power Systems will take a one year tenancy on December 1, with two two-year rights of renewal paying annual rent of $17,940 plus GST, Muir & Russek, trading as Experteez Total Image have just moved in taking a tenancy from September 23 for two years with two two-year rights of renewal at yearly rent of $17,940 plus GST and

Stainless Steel Specialist Installations have taken a lease from September 1 for two years with two two-year rights of renewal at rent of $18,460 plus GST.      

Mr Smith said the property offered a split-risk, hand-off investment of the highest quality for a new owner. “The existing owner has had a complete change in direction and is offering this passive investment for sale. There are limited similar units within the region and with its good income, low maintenance and impeccable presentation. Available industrial zoned land is at a premium in Kopu."

The Kopu industrial hub is six kilometres from Thames and the property is near to local and national branded tenants, including Placemakers, ITM and Carters building supplies. It is also within easy distance of Auckland, Hamilton and Tauranga.

Kopu has been had substantial growth since the new $47 million bridge opened in 2011, solving the bottleneck in to the Coromandel with the original one lane bridge.

At the end of last year the government's Provincial Growth Fund approved $270,000 towards a business case investigating Kopu as a centre to support marine servicing operations across the Hauraki Gulf as well as being a connector for water-based tourism opportunities.