The land and buildings of a unique property in the sought-after Mount Maunganui industrial precinct offers buyers of all kinds the opportunity to purchase an asset with extensive future development potential.
8 Titoki Place, Mount Maunganui is a 6,193sq m freehold site that is zoned Industrial and is being placed on the market for the first time in more than 35 years.
The property is currently home to 970sq m of total building area made up of a cool store facility that spans 591sq m with additional canopy, and a secondary 128sq m building previously used for manufacturing purposes that includes a lean-to and canopy space.
The manufacturing facilities have been converted to provide utility and storage for the current use of the property, which is that of a go-kart racing track for the business Bay Karts.
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Bay Karts has a lease in place with a final expiry of October 2028 that provides annual rental income of $63,000 plus GST but the property could be available with vacant possession, pending a payment to Bay Karts, adding significant appeal for developers who have an eye for the future.
With easy access to the major arterial routes, the Port of Tauranga is also readily accessible, providing another layer of convenience for future occupants.
Colliers Brokers Rob Schoeser and Simon Clark have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 25 May, unless sold prior.
Originally constructed in the mid-1980s, the strategically located property includes three cell towers servicing each of the three large telco networks of Spark, One NZ, and 2degrees.
The leases for Spark and 2degrees run into the mid-2030s, while One NZ’s agreement expires in 2052. The total combined annual rental income from the cell towers is $28,847 plus GST. The yard at the property is fully fenced, providing added security.
Schoeser, Commercial and Industrial Sales Broker at Colliers Tauranga, says it is rare to see properties of this scale presented to the open market in Mount Maunganui.
“With the cool store building vacant, an organisation can make the most of the existing facilities at the site and rapidly begin their operations, while enjoying the holding income from the current tenants,” Schoeser says.
“On the other hand, if an investor was to purchase the property and lease it out, market estimates suggest that when the property is fully tenanted it could return approximately $330,000 per annum in rental income.
“Ultimately though, the true value may lie in a future development and repositioning of the site, including the removal of the existing buildings, to ensure the full potential can be unlocked.”
Given its location down a cul-de-sac, the property offers good vehicle manoeuvrability. Titoki Place provides access to the Bay Link via Owens Place that connects directly to the State Highway network, providing linkages through Tauranga, Mount Maunganui, and Papamoa.
Clark, Managing Director at Colliers Tauranga, says the ongoing investment in Mount Maunganui’s infrastructure ensures this property is well placed for the future.
“The $262 million Baypark to Bayfair Link project is due to be completed in late 2023 and will substantially improve the surrounding roading network, which makes this location ideal for logistics-based businesses,” Clark says.
“With the port nearby and the lack of industrial properties being brought to the market in Mount Maunganui this property represents a rare chance for discerning buyers to secure a site with outstanding growth potential.
“We encourage all interested parties to contact us immediately to explore their options for the future.”
- Article supplied by Colliers
