The near-new showroom, warehouse and office premises of a top Bay of Plenty bathrooms company have gone up for sale in Tauranga’s fastest-growing industrial area, allowing investors to tap into a nationwide home renovations boom.
The prominent property for sale in the Tauriko Business Estate is fully occupied by Bay Bathroom Design and Build, a high-end bathroom renovation company that has operated in the region for over 20 years.
The company will occupy the Unutoto Place premises on a new seven-year lease, with two further five-year rights of renewal. The lease will generate an annual net rental return of $100,000 plus all outgoings and GST, with market rent reviews every two years.
The sale comes as home renovation activity and spending hits a multi-year high, according to an industry survey.
Research last year by renovation and design platform Houzz revealed nearly half of Kiwi homeowners (48 percent) had renovated their homes in the past 12 months, up from 41 percent in the previous year. The median renovation spend leapt 31 percent to $23,500.
Nearly half of homeowners surveyed planned to renovate over the next year. The planned spend of those with higher-budget renovations (the top 10 percent of spend) increased to $89,000 from $73,500, a 21 percent jump.
Servicing the residential sector, the owner-operated Bay Bathroom Design and Build business is well-regarded in the construction and plumbing industries. It has key relationships with many Tauranga-based and New Zealand-wide businesses, further cementing its presence in the design-and-build sector.
Bay Bathroom has invested heavily into the fitout of the Tauriko premises to suit its needs.
The freehold land and building at 47 Unutoto Place, Tauriko, Tauranga, are being marketed for sale through Myles Addington and Simon Maxwell of Bayleys Tauranga.
The property will go under the hammer at an auction on Wednesday 27 September, unless it is sold prior.
Addington said the immaculately presented 500-square-metre commercial premises sat on some 795 square metres of freehold land with six car parks and a secure rear yard.
“The building was completed in 2020 with concrete tilt panel boundary walls and a mixture of Colorsteel Endura wall cladding and aluminium flat panel cladding. Roofing is long run iron with translucent panels permitting plenty of natural light to the interior.
“The quality high-end showroom of some 141 square metres is an expansive high-stud space with an excellent internal finish, including polished concrete floors and great natural light and LED strip lighting throughout.
“Around 80 square metres of high-quality air-conditioned office space is provided beyond the showroom, opening into two separate meeting rooms, a reception counter and one large office area,” Addington said.
A lunchroom, small office and mezzanine storage area on the first floor is accessed via an internal staircase.
The more than 200-square-metre warehouse has a high stud and is accessed via a high roller door from the building frontage with a separate vehicle crossing at the street.
A secure, sealed and fenced yard is accessed via a second roller door at the rear of the building, providing additional storage.
Maxwell said a key attribute was the property’s position with prominent street frontage in the in-demand Tauriko Business Estate.
“This is Tauranga’s fastest-growing industrial area with excellent access to state highways and minutes from the city’s CBD and Mount Maunganui, along with multiple logistics depots, the Port of Tauranga, and Tauranga Airport,” he said.
Unutoto Place sits above Taurikura Drive, which is set to become a predominant road within the Tauriko Business Estate roading hierarchy with direct access off State Highway 29 (Kaimai end) as well as easy access to State Highway 36 (Pyes Pa).
“This location is incredibly well positioned for the long term with nearby Kaweroa Drive designed to accommodate a future cross-city link between state highways 29 and 36.
“Demand for industrial property in this location is also strongly supported by its position in the ‘Golden Triangle’ linking Tauranga, Auckland and Hamilton. The presence of New Zealand’s two busiest seaports in this dynamic region is pushing the need for warehousing space for big and small occupiers.
“Winstones Wallboards’ new $400 million plasterboard manufacturing and distribution facility in Tauriko is expected to be a catalyst for further business growth,” Maxwell said.
The Unutoto Place property sits within the Industrial zone under the Tauranga City Plan, which seeks to group together industrial, service and complementary activities.
In addition to a wide range of industrial uses, permitted activities in the zone include ancillary retail and offices, building improvements centres, trade suppliers, and minor public recreational facilities.