A commercial building in a thriving retail hub in Tauranga that is home to one of New Zealand’s most recognisable brands is being presented to the market for sale.
241 Fraser Street, Tauranga has 9,997sq m of total floor area on a 9,829sq m freehold site that is zoned Commercial.
The property is occupied by The Warehouse, who began a new 10-year lease in March leading to a final expiry of 28 February 2033. With future CPI rent reviews, which are capped at 3 per cent compounding (6 per cent every two-year rent review), in place in 2025, 2027, and 2031, plus a market review in 2029, there is considerable rental growth on offer.
The estimated net annual rental income from the property is $2,021,000 plus GST and operating expenses. The current owner of the property is undertaking upgrades to the tenancy, including new LED lights, air conditioning, and clear lights.
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The Warehouse is part of the 32,000sq m Fraser Cove Shopping Centre that is managed by the New Zealand Retail Property Group and houses high-profile tenants such as Burger King, CityFitness, Chemist Warehouse, and a Countdown supermarket.
The retail complex is easily accessible and provides 1,250 free open air car parks on-site and the property enjoys significant road exposure and visibility to passing cars with nearly 20,000 vehicles passing the facility on average each day when the Fraser Street traffic counts were last surveyed in March.
Tauranga’s CBD is only 3.9km away, while the local hospital is approximately 850m away and a handful of secondary and intermediate schools are also nearby.
With bus routes offering public transport to shoppers, the motorway network is also only minutes away.
Colliers Brokers Simon Clark, Rachel Emerson, and Peter Herdson have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 25 May, unless sold prior.
Clark, Managing Director at Colliers Tauranga, says this is a superb purchasing opportunity that is underpinned by a strong tenant covenant.
“The Warehouse is one of the most distinguished brands in the retail sector in New Zealand and has been a hugely popular shopping destination for many years,” Clark says.
“The lengthy new lease signed by The Warehouse shows their commitment to the site and the built-in rental growth through future CPI and market reviews makes this a highly appealing property.
“This is one of the premium hands-off passive investment opportunities that will be presented to the market in Tauranga this year and represents a premier low-maintenance asset that would be a strong addition to any portfolio.”
Emerson, Industrial and Retail Sales Broker at Colliers Tauranga, says The Warehouse is an anchor of the Fraser Cove Shopping Centre.
“Fraser Cove was developed in stages and The Warehouse building was constructed in 2002 alongside a collection of other large format retailers in the same stage,” Emerson says.
“The complex was further extended in 2004 and 2009 and the shopping centre remains hugely popular with locals due to its mix of complementary occupiers, easy access, and the way they run community and family events.”
Herdson, National Director of Capital Markets at Colliers, says the property will be keenly sought by buyers who covet the opportunity to acquire a trophy asset with excellent upside.
“With a steady rental stream on offer and a big-name tenant in the building, prospective purchasers have the chance to acquire a premier property that ticks all of the boxes,” Herdson says.
“Properties of this nature are highly sought-after but rarely found and we encourage all interested parties to contact us immediately to explore their options.”
- Article supplied by Colliers
