With the fundamentals of the thriving industrial sector underpinning investor confidence in that market, a Mount Maunganui industrial-zoned site which is currently underutilised signals opportunity for future redevelopment.
Occupying a high-profile corner site at the intersection with Hewletts Road, the main arterial linking Mount Maunganui with Tauranga, the 1,163sqm property at 156 Newton Street has income from two tenants and a significant portion of vacant land.
The long, irregularly-shaped flat site is sealed and securely fenced, and comprises a single-storey administration and workshop building with an attached semi-enclosed canopy, occupied by car yard operator Trevor Lee Autos.
The property also supports a large electronic billboard with three LED screens, with a lease to outdoor media advertising company, Go Media Bacbou Limited.
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It returns annual net income of $69,000 plus GST and OPEX.
To the rear there is around 422sqm of vacant land, which has previously been used as a showroom site for a range of kitset homes, and represents rental upside for a new owner.
The property is approximately 6km from the Tauranga CBD and 4km from central Mount Maunganui, and is being marketed for sale by deadline private treaty, closing 4pm on Thursday 13th April, unless sold prior, by Rory Brown, Christy Arundel and Lloyd Davidson of Bayleys Tauranga.
Brown said given the location in one of Mount Maunganui’s preferred industrial precincts and with strong profile and ease of access to the airport, downtown Mount Maunganui, central Tauranga and the port, the property has sound underlying credentials.
“This is a busy and active part of town with high exposure to passing traffic and extended profile to Hewletts Road,” he said.
“Vacancy rates for industrial property in the area are at all-time lows and as a result, Industrial rental rates have shown healthy growth.
“The vacant portion of land at the rear of the site presents an opportunity for a new owner to negotiate with another occupier, or to see the existing holding income as enabling future redevelopment plans for the site.
“Alternatively, an owner-occupier will recognise the inherent benefits of the location and see the current lease structure as a plus, with workarounds likely.”
Brown said demand for industrial property in this location is strongly underpinned by activity and growth within the Auckland-Hamilton-Tauranga golden triangle economic zone, and its proximity to the port, and roading networks.
“Industrial-zoned land is increasingly hard to find – particularly in this more-accessible price range and especially so close to main amenities and arterial links.
“While there is consent in place for a car yard, a prospective new owner has plenty of options under the industrial zoning and the underlying value of the land cannot be underestimated.”
The west side of Newton Street is zoned industrial and the east side commercial.
Directly opposite the entrance to the subject property is KFC, with the land and buildings associated with this selling in 2021 for a record figure at that time.
The surrounding locality comprises predominantly small to medium sized industrial and commercial properties, with residential accommodation a short distance to the east.
- Article supplied by Bayleys
