The ground lessor’s interest in a prime industrial property presents an outstanding investment opportunity with favourable lease terms that protect the landlord’s income in one of the region’s most desirable industrial zones, Bayleys salespeople say.
Located within the tightly held Mount Maunganui industrial area, 13 Harvard Way spans 1,658sqm (more or less), comprising two well-maintained high-stud industrial buildings, which generate a net rental of $102,800 per annum.
The primary workshop, constructed in 1995, and an additional workshop built in 2015, offer a total building area of 955sqm (more or less), including dual roller doors for convenient drive-through access, a secure yard, and additional storage facilities.
Bayleys Tauranga salesperson Christy Arundel says the property presents a unique opportunity for investors to benefit from a high-yielding investment property in a sought-after location.
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“The lessee’s ownership of the improvements on site, coupled with a commercial lease to the well-established tenant with favourable lease terms to protect the net rental return, ensures a stable and predictable income stream, giving the property a particular edge amidst more challenging economic conditions,” she says.
Arundel and Bayleys colleague Rory Brown are marketing the ground lessor’s interest in the property for sale, with an asking price of $995,000 plus GST (if any), representing an opportunity for a return over 10 percent.
The tenant – Truckline Services – is an experienced truck servicing operator with a reputation across the Bay of Plenty as the chosen service provider for premium transport brands.
“The trucking and transport industry continues to go from strength to strength in Tauranga, with significant demand for trucking-related service centres near the Port of Tauranga. This demand is expected to grow over the next decade.
“The location of Truckline Services at 13 Harvard Way is essential for supporting the logistics businesses in Tauranga, Mount Maunganui, and the wider Golden Triangle. This region is a critical logistics hub due to its proximity to the Port of Tauranga and key arterial routes, facilitating the movement of goods across major markets.
“With the high volume of freight traffic and the demands of efficient supply chain operations, the need for reliable and accessible truck servicing is paramount,” Arundel says.
The lease arrangement with Truckline Services includes favourable terms protecting the landlord’s income from future ground rent increases.
Bayleys Tauranga salesperson Rory Brown says the lease structure ensures that the net rent to the landlord remains unaffected by ground rental increases, which are borne by the tenant.
“This arrangement offers peace of mind for a high-yielding investment.”
Harvard Way, accessed via Jean Batten Drive, is strategically positioned off Hewletts Road, a principal arterial route connecting Mount Maunganui to the Tauranga Harbour Bridge, CBD, and State Highway 2.
“The prime location offers excellent connectivity to key transportation hubs, enhancing the property’s appeal to industrial tenants.
“The area has shown strong rental growth and low vacancy rates, reflecting its significance as a logical operational base for a diverse range of industrial operations tuned into the benefits of a location amidst New Zealand’s Golden Triangle economic hot zone.
“The combination of location, a long-term lease, and favourable lease terms position this property as a compelling investment opportunity, with stability and growth potential,” Brown says.
- Supplied by Bayleys
