Three in Tauranga to whet appetite

The industrial building at 9 Koromiko St. Photo / Suppled

Three investment properties in Tauranga will go under the hammer as separate lots at Bayleys on September 22, with indicators suggesting investors are back in the market for well-located properties with strong lease covenants.

Just 3.5km southwest of the city's CBD in the Judea industrial area, a well-presented freehold industrial building at 9 Koromiko St is being marketed for auction by Kevin Wehipeihana.

This industrial warehouse and associated offices offers 2225sq m of useable space plus a 258sq m canopy area all on a generous 4533sq m site.

The building is split into several areas including a ground-floor showroom and offices, second-level offices and an original workshop building of 785sq m with a new 907sq m workshop plus mezzanine storage.

NZ Windows Tauranga is the tenant with a net annual rental of $244,863. Expiry of the current lease term is October 2014 with a further five-year right of renewal. A rent review is due in October next year.

The original building went up in the 1960s but was revamped in 2007.

The property has unparalleled exposure to busy Koromiko St and is close to major arterial routes north.

"This building represents a premium investment suitable for most property funds, private trusts, off-farm investors or private investors," says Wehipeihana.

"It's the sort of well-maintained, well-located property that astute investors look out for."

Meanwhile, on a smaller investment scale, Rob Pinny has two separate commercial units in Roxanne Place next to the Greerton industrial area for sale. He says the well-located units' easy access to SH29 and hands-off, passive nature will appeal to individual investors or to family trusts looking to kick start - or add to - a commercial investment portfolio.

"These are no-frills, hassle-free investment options that have good leases in place to established tenants committed to the area," says Pinny.

Unit 1, 15 Roxanne Place is in a nine-unit complex in Waimapu Commercial Business Park. The modern unit with five designated on-site car parks has a ground-floor warehouse and showroom area of 252sq m and an upper level of 69sq m.

This level is used as a boardroom and office space at present but is fully consented for residential. NZ Breweries has just renewed its lease for a further three-year term with an annual rental of $45,000 plus GST.

Nearby, Unit 14, 23 Roxanne Place is also in Waimapu Park and has a new three-year lease in place to Energy Options, an established energy-solutions business, plus three further two-year rights of renewal. The annual rental is $31,185 plus GST.

The middle unit of an eight-unit commercial complex, Unit 14 has 211sq m of warehouse space with glass frontage and roller door access and a 86sq m mezzanine level. There are 24 on-site parks for common use.