The land and buildings of a cool store facility in the Mount 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 Road and 6 York Avenue is home to Realcool, cold storage specialists who are the long-term occupants of the property that has 5,722sq m of total floor area on a 7,369sq m freehold site.
The property is being offered to the market as a sale and leaseback and Realcool have 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.
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The highly visible corner site offers excellent vehicle access and is in the heart of Mount 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 have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 3 November, unless sold prior.
The main building at the property is a predominantly high stud 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 allocated to upgrading the refrigeration equipment to ensure ease of use and less time spent on repairs.
The property also includes an office and administration building, which sits on the corner of Triton Avenue and Mark Road, while a catering and food preparation company subleases a further building on the site.
Clark, Managing Director at Colliers Tauranga, 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,” Clark says.
“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, Commercial and Industrial Sales Broker at Colliers Tauranga, says the strategic location of the property is highly desirable.
“The property is accessed via Totara Street to the west and Hull Road to the north, which allows easy access to all parts of Tauranga, Mount Maunganui, and Papamoa,” Schoeser says.
“With a wide road frontage, the high-profile property has excellent visibility as part of the Mount Maunganui industrial hub.
“Properties such as this one are seldom seen on the open market and we encourage all interested parties to contact us immediately about this premier passive investment opportunity that includes built-in rental growth and a strong tenant covenant.”
- Article supplied by Colliers
