Press Release – Bayleys
Strong interest and activity within the development sector in the Bay of Plenty region is likely to fuel enquiry on 2,019sqm of freehold Tauranga central city land, which has holding income from three tenancies on varying lease terms.
The commercially-zoned properties at 160-168 Devonport Road, Tauranga are held in two titles and are owned by a local investor who recognises that the value of the site lies beyond its current commercial business use.
Located on the eastern side of Devonport Road, on the periphery of the CBD between First Avenue and Second Avenue in the City Centre Business Zone, the properties have prominent road exposure to high passing volumes of traffic.
Lloyd Davidson and Rory Brown of Bayleys Tauranga are marketing the properties as one lot to be sold by way of Deadline Private Treaty closing 17th September (unless sold prior).
There are three businesses operating from the existing buildings namely Life Unlimited Charitable Trust, Tauranga 168 Asia Supermarket and Team Beyond Limited (trading as Beyond Fitness), with some lease break clauses in place by mutual agreement.
The property at 160 Devonport Road has a 385sqm building that was moved onto the site along with a relocatable shed on a 1,007sqm site with 19 car parks. It is occupied by Life Unlimited, a not-for-profit organisation working in the health and disability sector.
At 168 Devonport Road, there are two circa-1950s buildings that have had subsequent modifications and additions to offer a total 771sqm of space, with 6 car parks on 1,012sqm. The tenants are a grocery store and a health and fitness business.
Combined, the properties have a total net rental per annum of $195,021 + GST.
Davidson says the value of the location is supported by the new $200 million development on the corner of Devonport Road and Elizabeth Street which will be anchored by Farmers, and also provide 97 high-end apartments, 23 luxury townhouses, a dining precinct, and additional retail units.
“There is a proven appetite for development opportunities in the city currently and the position of the properties we’re selling will appeal to forward-thinking developers who have been scoping out potential sites,” said Davidson.
“While there are tenants in place for now, this will serve to provide some valuable holding income while any future plans are consolidated and there are some lease break clauses that could be exercised to facilitate change.
“With the Farmers project two-thirds out of the ground, eyes are turning to this part of the city for other development opportunities that could leverage off the reinvigoration we’re seeing.”
The current city plan allows for a 16-metre build height for any future development on this site, which would ultimately unlock extensive harbour views. Rear easements/rights-of-way across both neighbouring properties provides multiple access points which will be valuable should the property be redeveloped.
Davidson says he’s aware of numerous developers who are actively looking for projects.
“We need to see more new development in the city and to encourage more residential living in the CBD area to create vibrant mixed-use precincts,” said Davidson.
“Sure, there may be some cautiousness in the wake of the pandemic but the fundamentals of the region as an anchor in the Auckland-Hamilton-Tauranga golden triangle will not be dimmed.
“Prudent investors and developers are looking for wise places to put their money as let’s face it, bank deposit rates are not looking too flash.”
Davidson says current international tourism challenges aside, long-term, Tauranga could do with more hotel development and this site could spark interest in the accommodation sector.
“The lifestyle advantages that the Bay of Plenty region offers have been thrown into strong relief as a result of the COVID-19 conditions,” he said.
“We’ve seen steady interest from ex-pats who are pining to come back to Tauranga and its surrounds and in global terms, property here represents good value.
“I think once the world settles down and some sense of normality returns, the pull of regions like the Bay of Plenty will be very strong.”