A redevelopment site at the gateway to New Plymouth’s primary bulk retail precinct is for sale for the first time in more than 25 years.
The 1ha corner site at 643-657 Devon Road and 2-8 Constance Street, Waiwhakaiho, is located directly opposite the popular Valley Mega Centre, only 4km from the CBD.
It boasts a huge 137m of frontage to Devon Road, providing massive exposure to one of New Plymouth’s main arterial routes.
Seven tenants on short-term and flexible leases provide useful holding income while a new owner finalises development plans.
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Colliers International has been exclusively appointed to market the property for sale by tender, to be lodged by 4pm on Thursday 19 March.
Benet Carroll, Director of Colliers New Plymouth, says it is available for the first time since 1994.
“This is an outstanding opportunity to acquire a strategic landholding in one of New Plymouth’s fastest-growing areas.
“The property is superbly positioned on a high-profile site opposite Harvey Norman and the Valley Mega Centre, which is home to numerous national and international retail brands.
“These recent developments have significantly transformed the surrounding area, which was once predominantly industrial but is now characterised by a mix of large format and showroom retail.
“The wider area around and to the north of Devon Road is undergoing a surge in development, particularly around Bell Block and the airport, while greenfield land on Smart Road to the east has been earmarked for future residential growth.
“All of this exciting activity makes the property a compelling development proposition in a tightly held location.”
The property comprises a 10,202sq m site spanning four titles with a net lettable building area of 2,662sq m.
It is being offered to the market in two parcels, with the option to buy one or both.
Option 1 comprises a 2,600sq m site at 6-8 Constance Street, which is available with vacant possession.
Option 2 comprises a 7,600sq m site at 2 Constance Street and 643-657 Devon Road. All but two of the seven tenants are on month-by-month leases, returning $241,600 in net annual rent.
Carroll says the property affords multiple options for a new owner.
“The property can be retained as an investment or redeveloped, with all sitting tenants on short-term, rolling leases.
“It can either be split or purchased as a whole to accommodate larger occupiers and developers.
“Future uses could include large format, showroom or convenience retail, supported by growth in the surrounding residential catchment.”
The property offers frontage to three roads – Smart Road to the east, Constance Street to the west and Devon Road to the south.
Devon Road is a busy arterial route that forms a key part of State Highway 3 between Taranaki and Waikato. It boasts one of New Plymouth’s highest traffic counts, with an average daily flow of 32,000 vehicles.
Smart Road is due to undergo a massive transformation, with 350ha of greenfield land earmarked for future residential development. This will accommodate some 3,000 residential sections and 8,750 new residents.
The intersection of Smart Road and Devon Road provides the main access into the Valley Mega Centre, which was developed in 2004 and has since transformed the area.
The centre provides 30,000sq m of bulk retail space with leading tenants including Briscoes, Noel Leeming, Rebel Sports, Countdown, Mitre 10 Mega, Torpedo 7, Lighting Direct, Number 1 Shoes and Warehouse Stationery.
A number of major retailers are considering expansion in the area, which boasts a wide catchment including all of New Plymouth, as well as central and southern Taranaki.
New Plymouth is the biggest city in the Taranaki region and among the stronger regions for growth in New Zealand.
The site for sale has a regular, rectangular shape and level contour, providing a good platform for any future development.
It predominantly comprises a sealed yard, with low overall site coverage of 26 per cent.
The buildings, constructed in various stages from the 1970s to the 1990s, provide workshop, showroom, office and residential accommodation.
