Tui products formally opened its 10,500sq m purpose-built factory last week, increasing its staff in Tauranga and kicking off the first development by Mangatawa Papamoa Blocks Inc, a Maori trust that owns about 300ha of land in the Truman Lane, Mount Maunganui, area.
Tui got the project rolling with a 99-year lease with Mangatawa, whose chairman Kevin Haua and operations manager Paula Werohia unveiled a plaque at the official ceremony, which drew 260 local guests, suppliers and customers.
"The lease has worked very well for both parties," said Tui managing director Don Forgie.
Tui formed a 50-50 joint venture with Wallace Developments to develop the project, and construction was undertaken by Strongline Buildings. The partners sold the building and land lease on to local property company Pacific Properties for about $12 million, then Tui entered into a 20-year leaseback of the building and land, with two further 10-year renewal options.
"It was always the intention to sell to Pacific Properties," said Wallace general manager Paul Broederlow. "It allowed Tui to carry on with their core business, but they have now got a facility that they desperately needed because of their expansion."