A prominent property on a high-profile corner site in the tightly held Tauriko industrial precinct in Tauranga will appeal to buyers looking to acquire a premier asset with a strong tenant covenant.
2 Taitimu Road, Tauriko has 1,228sq m of floor area that includes warehouse, office, and showroom space on a 2,939sq m freehold site that is zoned Industrial.
The property offers dual access, generous car parking, and yard areas as well as detailed landscaping within the site.
Designer Homeware, a New Zealand owned and operated wardrobe and storage firm, is the current tenant and they recently began a 10-year lease that returns $219,533 plus GST and operating expenses in annual rental income.
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Colliers Brokers Rachel Emerson, Grant White, and Rich Davidson have been appointed to market the property for sale by deadline private treaty closing at 4pm on Thursday 15 September, unless sold prior.
Designer Homeware has led the custom wardrobe and storage revolution from their Tauranga base since 2006. Their on-site factory enables them to design and manufacture in-house, managing the creation and delivery process every step of the way.
The company employs more than 50 team members who work with homeowners, building companies, architects, and interior designers all over New Zealand to utilise their best designs to meet the needs of their clients.
Their 10-year lease runs until 2032 and they have two further rights of renewal for five years each leading to a final expiry of July 2042.
Emerson, Industrial and Retail Sales Broker at Colliers Tauranga, says having an established tenant with a long-term lease at the property will be highly appealing for buyers.
“The occupants have made a substantial commitment to the site given the length of their lease term and there is built-in rental growth with two-yearly market rent reviews in place, which is a strong drawcard for prospective purchasers,” Emerson says.
“The strong tenant covenant on this property adds to the offering, making it a prime passive investment.”
Built in 2019, the property was constructed with Colorstreel and Metalcraft insulted panel cladding, aluminium joinery, four automatic roller doors, and two floors of top-quality office accommodation with a highly functional warehouse and showroom.
White, Commercial Sales Broker at Colliers Tauranga, says the property has been strategically designed to suit a range of uses.
“The building has been constructed with style, presence, and sophistication in mind. Given it was built from quality materials, this offering will remain a trophy asset to be proud of for many years to come,” White says.
“The property was purpose-built for the current occupant but if it was to be leased in the future it would be highly desirable for a wide pool of tenants.”
Davidson, Commercial and Industrial Sales Broker at Colliers Tauranga, says the Tauriko locality is sought-after among buyers.
“Taitimu Road benefits from a strong street presence. Businesses and investors are drawn to the Tauriko Business Estate for its premier buildings, blue-chip neighbours, and ease of access to other parts of the region given the favourable proximity to the nearby motorway network,” Davidson says.
“The subject property has high levels of visibility from both Taitimu and Gargan Roads and the elevated site offers considerable views to the west and north.
“Neighbouring tenants include prominent firms such as Apparelmaster, Northpower, Mpac, Oji Fibre Solutions, and Harkin Roofing, among others.”
Davidson says this property is one of the most desirable industrial assets that is available to purchase in the Bay of Plenty region.
“Stand-alone, futureproofed properties in tightly held locations such as this one rarely come to the open market."
- Article supplied by Colliers
