Investors bank on strategic site

Corner properties are always sought-after and this one's central location further increases its appeal. Photo / Supplied

The building on a high-profile Tauranga central city site, locally known as TSB Corner, is to be auctioned by Bayleys on August 25 as the present owners, a group of local investors, plan to move on to other projects.

The north-facing, two-level building with 11 carparks on the corner of Wharf St and Willow St has a strong lease covenant with three key tenants, including TSB Bank, returning an annual gross rental income of $190,458, plus GST.

Rob Pinny of Bayleys Tauranga is marketing the CBD property ahead of the auction and says corner properties are always sought-after for their physical presence and the associated branding opportunities. This property's central location near the council buildings and key city bus stops further increases its appeal.

"Evidenced by the number of phone calls and inquiries we have received about this property in the lead-up to auction day, investors are out there waiting for the right opportunities to come to the market. These strategic properties are generally tightly held and when they do present themselves, are eagerly contested," Pinny says.

Sited on 670sq m of freehold land, the building was constructed in the mid-1960s with additions made around 1981. Further renovations were undertaken in 1997 and the TSB Bank upgraded its portion of the building at the start of its lease in 2006.

The TSB Bank, fully New Zealand-owned and voted "best bank for customer service" for the past 10 years, occupies 170sq m of the ground floor, with its main entrance on Willow St.

Also on the ground floor are the 185sq m flagship central city offices of Eves Real Estate, one of the Bay of Plenty's largest real estate companies with 10 offices across the region. This tenancy has been partitioned to provide an open reception area, three side offices and a large open-plan workspace to the rear.

Eves' parent company, Realty Services Limited, has its management offices and auction rooms, shared by Eves, on the second level, occupying 265sq m, including decks. It is configured to provide a reception area, a large open-plan work area, five side offices, an auction room and amenities including a kitchen and staff room which opens to a roof deck.

"A small service lane runs behind the building allowing access from Spring St through to Wharf St which also allows access to carparks and offers flexibility for the building in the future," says Pinny.