A high-profile industrial property in Mount Maunganui is generating interest among investors with its potential for diversification.
The warehouse on 943sqm of freehold land at 47 Aerodrome Road is positioned on a high-profile corner close to the Port of Tauranga, Tauranga Airport and main arterial links, including Hewletts Road.
Bayleys salesperson Rory Brown says that industrial vacancy rates in the area are around all-time lows, and rental growth has recorded healthy growth as a result.
“Demand for industrial property in this location is strongly supported by migration-driven population growth, undersupply of well-located warehousing, and the strength of the Golden Triangle economic area.
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“Forming an integral cog in New Zealand’s economic engine room, the Golden Triangle comprises the area between Auckland, Tauranga, and Hamilton, where approximately 53 percent of the population is forecast to live by 2048.
“The Port of Tauranga is New Zealand’s largest container port by volume, and adjacency to the subject property provides future development potential as occupiers place high value on warehousing and industrial sites that are secure and easily accessible via key transport links.”
Brown is marketing the property for sale by auction at 1:00 pm on Wednesday, 13th March 2024 (unless sold prior) with Bayleys colleagues Christy Arundel and Lloyd Davidson.
Totalling 409sqm (more or less), the building features 379sqm (more or less) or high-stud, clear-span warehousing equipped with a two-tonne gantry crane and three roller doors.
There is 30sqm (more or less) of office accommodation and amenities and an underutilised yard area spanning approximately 534sqm.
Arundel says a spacious yard and dual access from Aerodrome Road and Cherokee Place provide immediate functionality and scope for future redevelopment, while the gantry crane is a versatile asset for operators requiring heavy-duty lifting capacity.
“Certain industrial processes such as those in manufacturing, construction or logistics may require specialised lifting equipment, and the addition of a gantry crane provides for a more diverse range of industrial activities on the property.
“At the same time, the value proposition is elevated given the current configuration, which could support a multi-tenancy or sublease arrangement, offering an opportunity to generate income while redevelopment plans are put into place.
“Recent organic growth of local homegrown businesses and the relocation of new entrants to the region continues pressure already-constrained supply, making the redevelopment credentials here quite attractive for add-value investors and developers.”
Located approximately six kilometres from the Tauranga Central Business District and four from the central Mount Maunganui area, the property is well-connected to the wider region, which accounts for 45 percent of regional economic output.
“Mount Maunganui has a strong industrial sector focused around the Port of Tauranga, which has been expanding its freight container storage capacity.
“New developments in Tauriko and Rangiuru near Te Puke continue to attract national and global operators, lifting the broader region’s reputation as an attractive base compared with Auckland and Hamilton,” Davidson says.
“A chronic shortage of land continues to underpin property values. We expect industrial supply will remain tight over the next few years despite future projects concentrated around the Bay of Plenty as the import and export corridor of New Zealand.”
- Supplied by Bayleys
