Main Rd quartet offers diversified investment

A multi-tenanted building for sale on Katikati’s main town centre retail strip offers an affordable chance to invest in a thriving provincial location.

The more than 800-square-metre property with street-level retail plus basement storage is a standout presence on Main Road, doubling as State Highway 2 between Auckland and Tauranga.

Its four tenancies are fully leased to established tenants, encompassing an Italian restaurant and takeaway, an Indian specialty grocery store, a barbershop, and a charity op shop.

The businesses occupy on various lease terms with final expiries ranging from 2031 to 2037. The leases return a diversified combined net rental of $101,301 plus all operating expenses and GST per annum.

The well-presented approximately 822-square-metre building is underpinned by some 811 square metres of commercial-zoned land.

The freehold property at 6 Main Road, Katikati, will go under the hammer at an auction on Wednesday 24 June. The sale is being marketed by Brendon Bradley and Christy Arundel of Bayleys Tauranga.

Bradley said the building was configured with three tenancies fronting Main Road, plus a rear tenancy housing the grocery store accessed via a generous central hallway.

“A stairwell leads to the basement, part of which is included in the eatery and barbershop leases. On-site car parking is available behind the building, accessible via a service lane. There’s also plenty of convenient public parking for customers along Main Road,” he said.

The building was originally constructed in the 1960s, with a rear extension and basement added around 2005.

Bradley said the sizeable site offered future owners the potential to add further value by making greater use of the large basement storage area and/or expanding the building on land at the rear.

Arundel said the building had excellent street presence with around 20 metres of Main Road frontage opposite one of the town’s busiest intersections.

“Strategically located on State Highway 2, this provides exceptional exposure to consistent daily traffic flows through this Bay of Plenty corridor.

“The town centre harbours a lively mix of hospitality, service and retail offerings. Local operators rub shoulders with national and international names such as Unichem, Paper Plus, Four Square, Pizza Hut, BP, and ANZ and Westpac banks.

“This well-supported commercial environment also enhances foot traffic, further reinforcing the property's credentials as a strategic passive investment in a vibrant provincial township,” Arundel said.

Katikati continues to experience steady growth underpinned by its role as a vital service centre between Tauranga and Waihi.

Renowned for its concentration of public murals depicting local history, the town serves a highly productive rural and horticultural hinterland. It also reaps the benefits of a position in New Zealand’s economic ‘Golden Triangle’, being around a half-hour drive from Tauranga, and within two hours of Auckland and Hamilton.