The land and buildings which previously housed one of a former roading and civil works machinery and equipment storage depots has been placed on the market for sale – and has been identified as a hug redevelopment opportunity.
The generally rectangular-shaped block of flat land on a corner site with dual road access points is situated on the urban boundary of Paeroa, and currently sustains a mishmash of warehousing and garage space, engineering workshops, and a single-storey office block.
The approximately 15,859 square metre property at 1 Grey Street on the corner of Opatito Road is zoned for industrial use under the Hauraki District Council Plan, and is presently occupied by a multitude of tenants who make good use of the substantial yard space within the location.
The freehold land and buildings at 1 Grey Street in Paeroa are now being marketed for sale by tender through Bayleys Hamilton, with the tender process closing on October 26. Salesperson Josh Smith said that while the property was generating revenue from the existing tenancies occupying infrastructure and buildings, it’s biggest potential lay in being redeveloped.
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“The property offers a virtual ‘blank canvas’ development opportunity for any new owner - with the benefit of potential short-term leasing incomes while the necessary resource consents are acquired for any construction. Existing tenants occupying the 2,500-square metres of buildings within the property are on a mix of annual, monthly, and causal leases,” said Smith.
“The location is large enough, and close enough to Paeroa’s central business district, that it could easily sustain a large supermarket. At present, the only large supermarket in town is a Countdown operation, with a smaller Four Square shop also in the main street.
“That leaves the way open for a potential Pak’N’Save or New World to open up. I would suggest that the overwhelming majority of Paeroa residents would welcome the arrival of a second nationally branded supermarket in town.
“Alternatively, there is enough space across the yard area to sustain the development of a ‘tradie’-type hub of terraced tilt-slab warehouses sized between 120-200-square metres to service tenancies such as electrical, facilities, plumbing or small engineering firms,” Smith added.
“From this perspective the site could appeal to an owner-occupier looking to purpose-build their next premises in a cost-effective manner, while also undertaking a degree of property development to generate rental income.
“Otherwise, there is enough land to sustain say two or three larger warehousing structures suitable for logistics, heavy engineering or manufacturing businesses. From this perspective, having two street frontages is highly beneficial for ensuring a smooth traffic flow for business tenants.
“For a regional services town, Paeroa is seriously booming. Significant residential expansion of Paeroa is already underway at two housing subdivisions within the town – which will see some 700 new residential dwellings to be built, along with a commercial office and administrative services hub.
“This development opportunity at Grey Street underpins the growth emanating in other parts of Paeroa, and will deliver the necessary service infrastructure required to sustain a prosperous regional economy.”
The property is located less than 100-metres from State Highway 2 – which connects Paeroa to Tauranga, Hamilton and Auckland.
“This convenient location within Paeroa was one of the primary reasons roading and civil engineering firm Downer utilised the location as one of its works depots – with vehicles and personnel having easy access to the surrounding smaller settlements within the territorial authority, as well as Ngatea to the north-west and Waihi to the east,” Smith said.
“Being situated away from Paeroa’s central arterial route and with minimal exposure to residential parts of Paeroa, scaled development of the Grey Street block would have minimal impact to the town’s existing retail aesthetics.”
Hauraki District Council’s Long Term Plan 2021-2031 forecasts that the council’s catchment area will continue to experience population growth for the next 30-years
“In the longer term, we (Huaraki District Council) have undertaken our infrastructure planning based on the high growth scenario because we believe people from other areas in New Zealand will continue to move to our district,” said the report.
“We need to be able to readily cater for this growth.”
Smith said the council’s demographic analysis added further rationale for the establishment of a second supermarket in Paeroa.
- Article supplied by Bayleys
