The 4.1873-hectare property at 68 Hewletts Road, Mount Maunganui has significant untapped potential and is expected to spark strong interest from well-resourced buyers both locally and nationally.
The parcel of land has dual access off Hewletts Road, effectively State Highway 2, and Macrae Avenue, giving it drive-through capability while allowing for greater density of development.
The property has a 240sqm recently-refurbished warehouse structure and is currently partially-leased. Two respected national brand tenants occupy around one-quarter of the site, to the north-east boundary accessed from Macrae Avenue.
The landholding is being marketed locally by Jo Stewart of Bayleys Tauranga, in conjunction with Scott Campbell, Bayleys’ national director for industrial real estate based out of Auckland.
It is for sale by tender (unless sold prior), closing 4pm, Thursday 26th August 2021.
Campbell said given the strong national interest in industrial property as an investment vehicle, and the shortage of large-scale opportunities throughout the country, he expects enquiry to come from outside the region as well as from active buyers in the Bay of Plenty market.
“Businesses wanting to be strategically-placed to leverage the region’s strong economic fundamentals, and the development sector hungry for opportunities in this proven Mount Maunganui precinct, will recognise the future potential of the site,” he said.
“Sites with scale and capacity for adding value through additional leasing while awaiting future redevelopment opportunities, are thin on the ground anywhere nationwide.
“Tauranga is one of the key anchors in New Zealand’s economic ‘golden triangle’, accounting for 45 percent of the Bay of Plenty economy with key fundamentals including tourism, horticulture, viticulture, kiwifruit, pastoral farming, housing and exporting.
“With improved roading infrastructure and connections with Auckland and Hamilton, the other two pillars of the economic triangle, Tauranga will continue to be a significant player in the industrial market.”
Development in the immediate Hewletts Road area includes a range of industrial and commercial occupiers with well-established local and national brands represented.
Describing the offering as unparalleled in the current market, Stewart said there’s massive scope for owner-occupiers and future developers prepared to optimise the site’s footprint while harnessing the existing lease arrangements.
“It’s the size of the site that elevates it in the Bay of Plenty marketplace today, along with its desirable freehold status,” she said.
“There has not been an opportunity of this nature and size so close to the Port of Tauranga and the airport, with easy access to main transport arterials, for some years.
“Properties of this scale are a rarity in the broader Tauranga area, with most similar properties being tightly-held by local high net worth private owners, institutional investors and owner-occupiers.”
Stewart said even with the existing tenancies on site, there is around three hectares of vacant space offering potential for redevelopment with good bulk and scale possible.
“The Industry zoning supports a wide range of activity including coolstores, manufacturing, processing, engineering, bulk storage, packaging, wholesale distribution, freight, logistics, and marine-related activities,” she said.
“With existing income to support development timeframes, a new owner could work through the possibilities via the usual Council channels to unlock the potential of this site.”