A highly visible corner property in Te Puke is being presented to the market offering buyers the opportunity to acquire a prime asset with a blue-chip tenant.
29 Queen Street, Te Puke, has 990sq m of total net lettable area on a 3,642sq m freehold site that is spread across four titles and is zoned Commercial.
Farmlands Co-operative is the established tenant at the property and their lease agreement provides $175,700 plus GST and operating expenses in annual rental income.
The property has three road frontages and excellent on-site car parking plus yard space, offering convenience to the occupants, customers, and suppliers.
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Queen Street sits on the western perimeter of Te Puke’s town centre and the property is within easy walking distance of Jellicoe Street where the majority of the town’s retail shops, and professional and commercial services are located.
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 22 September, unless sold prior.
The building was constructed in 2000 and is predominantly situated in the north-western sector of the site. There is 914sq m of ground floor retail and warehouse space, as well as 76sq m of mezzanine office and amenities. There is also 54sq m of canopy.
The purpose-built facility, which has been well maintained, includes a fully sealed yard that can be accessed via three vehicle crossings.
Tenant Farmlands Co-operative was formed by farmers for farmers over 55 years ago, with the aim that everybody should prosper. This sentiment remains as strong as ever and they have more than 80 stores throughout New Zealand.
Farmlands is the largest buying group of its type in New Zealand, transacting more than $2.5 billion worth of business annually and is listed in the top 20 companies by turnover in New Zealand. This buying power helps reduce the input costs of more than 70,000 Farmlands shareholders nationwide.
Farmlands recently agreed to a new three-year lease that begins in September and has one further right of renewal for three years leading to a final expiry of September 2028.
Clark, Managing Director at Colliers Tauranga, says the property is a premier passive investment.
“With an established tenant in place that has agreed to a new lease there is a strong tenant covenant tied to this property,” Clark says.
“This offering has all of the key fundamentals that buyers are looking for in an investment given there is a longstanding national tenant on a uniquely configured site. There is also a market rent review scheduled for September 2024 that should provide the opportunity for future rental growth.”
Te Puke is a vibrant town that offers most commercial, professional, and recreational services as well as primary, intermediate, and secondary schooling.
Known as the ‘Kiwifruit Capital of New Zealand’, Te Puke is part of the Western Bay of Plenty region, which has experienced considerable population growth during the past 20 years.
Schoeser, Commercial and Industrial Sales Broker at Colliers Tauranga, says Te Puke’s strong local economy is underpinned by a dynamic horticulture sector.
“The Western Bay of Plenty economy bucked the national trend in 2021 as the region experienced 2.8 per cent growth, according to Infometrics, exemplify the potential of the area,” Schoeser says.
“The subject property represents an exceptional investment proposition and offers buyers the opportunity to acquire a high-quality asset in one of New Zealand’s key growth areas.”
- Article supplied by Colliers
