Split-risk retail investment

A high-profile retail centre in one of the Bay of Plenty’s fastest-growing coastal communities is for sale with split-risk income from a diverse mix of tenants.

Located only 20 minutes from Tauranga’s CBD, the newly refurbished property at 168 Omokoroa Road occupies a strategic position at the centre of the Omokoroa Peninsula, within the North Island’s growing ‘Golden Triangle’ region.

It is fully tenanted by the neighbourhood’s only gym, a bottle store and three hospitality offerings that are well situated to capitalise on demand from an expanding residential catchment.

Omokoroa has seen rapid population growth in recent years, buoyed by its designation as an area of special housing growth.

Situated on a peninsula that stretches between State Highway 2 and Tauranga Harbour, it offers a mix of established and new residential subdivisions that are serviced by a wide range of amenity.

Gawan Bakshi, Investment Sales Broker at Colliers International, says 168 Omokoroa Road provides an outstanding opportunity to gain a foothold in this fast-growing community.

“This fully leased retail investment is superbly located at the heart of Omokoroa, on the main arterial route linking the peninsula with State Highway 2.

“The property benefits from excellent street profile and is surrounded by a range of complementary businesses, including a FreshChoice supermarket, medical centre, pharmacy, dentist and vet.

“It comprises a 626sq m single-level retail complex on a 2,757sq m freehold site with plenty of shared car parking.

“The buildings were originally constructed as light industrial premises in 1996 and 2002. The first retail element was added in 1999, when the front building was converted to a liquor store.

“More recently, the property was completely redesigned and converted into a convenience retail and hospitality centre.

“The work, completed last year, included four new retail tenancies, new exterior cladding, new internal walls, a large deck, and additional facilities and toilets.

“The end result is a striking contemporary retail centre that has attracted an excellent mix of tenants with very favourable lease terms.”

Colliers International has been exclusively appointed to market 168 Omokoroa Road, Omokoroa, for sale by deadline private treaty closing at 4pm on Thursday 5 November, unless it is sold earlier.

Simon Clark, Director of Colliers Tauranga, says Omokoroa is an excellent location to invest in.

“Surrounded by water and crisscrossed with avocado and kiwifruit orchards, the Omokoroa Peninsula provides an ideal mix of lifestyle and convenience, only a short distance from Tauranga.

“Omokoroa has fantastic amenities including the well-respected Omokoroa Point School, public library, cafes and shops.

“Residents fish or launch from the jetty, kayak, swim safely or enjoy the sporting facilities of a golf club, boat club, tennis club and field sports from the Western Avenue playing fields.”

Clark says the population has grown from 2,547 at the 2013 census to nearer 3,000 after being designated as an area of special housing growth. Expectations are that the population will reach up to 12,000 by 2030.

The property for sale returns some $300,000 in net annual rent plus GST and outgoings.

Shops 1-3 are tenanted by VPT Health Club, which occupies 191.55sq m on a three-year lease returning $72,000. A three-year right of renewal extends the final lease expiry to April 2025.

VPT Health Club is a gym that helps everyday individuals reach their health and fitness goals through education, openness and acceptance. They encourage, motivate and create a friendly environment.

Shop 4 is tenanted by The Address Indian Kitchen, which occupies 93.16sq m on a three-year lease returning $45,000. A three-year right of renewal extends the final lease expiry to June 2025.

The Address is a local Indian restaurant that offers dine-in and takeaway options, attracting high reviews from Omokoroa locals and visitors alike.

Shop 5 is tenanted by Kiwi Liquor Omokoroa, which occupies 166.17sq m on a new six-year lease returning $63,000. Two six-year rights of renewal extend the final lease expiry to September 2038.

Kiwi Liquor provides a good selection of wines, premium spirits and craft beers, and has always maintained a high level of customer service.

Shop 6 is tenanted by The Local Bar and Eatery, which occupies 148.19sq m on a new six-year lease returning $81,000. Two six-year rights of renewal extend the final lease expiry to September 2038.

The Local provides a new and exciting dining experience, with excellent customer service and accommodation for any special requirements.

Shop 7 is tenanted by Neighbourhood Pizzeria, which occupies 27.05sq m on a three-year lease returning $39,000. A three-year right of renewal extends the final lease expiry to October 2023.

Neighbourhood Pizzeria – one of only two pizza restaurants in the area – offers delicious gourmet pizzas, great staff and speedy service with a wide selection of options.