Large-scale Tauriko site with logistics tenant locked-in

The Property
• Freehold 7,682sqm site within Tauriko Estate industrial park
• Purpose-built depot with floor area of around 1,959sqm under construction
• New 10-year lease with rights of renewal to Fliway Transport Limited
• Lease returns $450,000pa + GST and outgoings
• Ample parking, full drive around and expansive yard areas
• Designed to Fliway’s specification as its new regional depot

Quick Look
• National Total Property marketing campaign – sale by deadline private treaty
• Interest generated via Bayleys’ databases and Total Property magazine
• More than 50 enquiries generated throughout the campaign
• Six offers received from investors around the country
• SOLD (subject to building completion) for $10,500,000
• Purchased by Wellington-based investor

The Story

Tauriko Business Estate at the junction of SH29 and SH36, Tauriko is the Bay of Plenty’s premier industrial location covering 200 hectares and accounting for the bulk of Tauranga’s current industrial building activity.

Mark Walton, Bayleys’ commercial and industrial manager, brokered the recent sale of Lot 1, 351 Matakokiri Drive within the Tauriko precinct and said it was no surprise that the property attracted significant nationwide investor interest.

“As a contributor to the country’s economic “golden triangle”, Tauranga is a hot location for investment with property in high demand – and short supply, with very little future land available for development.

“Tauriko Business Estate has been a standout industrial project for Tauranga and the wider region, and anything we’ve taken to market there has sold quickly.

“This purpose-built new-build property with outstanding tenant covenant and returns hit the mark for investors and there was strong competition.”

One of the country’s largest transport and integrated logistics providers Fliway Transport Limited – recently acquired by NZ Post – worked closely with the developer and their consultants to select a site and design a building to accommodate growth, and provide efficiencies, to their business.

“Designed by Cube Architecture and built by well-regarded local construction firm iLine Construction, this will be an enviable, modern, A-grade industrial facility,” said Mark.

The property has excellent access to rail links and state highways leading to Auckland, Hamilton and Rotorua and is minutes from the Port of Tauranga and Tauranga’s central business district.

Vendor Comment

Vendor spokesperson Tim Parkes appreciated the perspective that Bayleys brought to the sale process and believes no stone was left unturned in finding a buyer.

With a strong State Owned Enterprise tenant, Fliway, and the negotiated long-term lease with renewals and rental growth in place, Tim said they felt the industrial offering was a compelling one in today’s market.

“These factors, along with the well-designed building, location, and strength of the industrial sector, all combined to give purchasers confidence.”

Tim said choosing Bayleys to handle the sale was a good move.

“We selected Bayleys as our agency due to their reputation for having a strong network of potential buyers nationwide, and the fact that our agent, Mark, was involved from the outset of the project providing advice on different aspects of the development and offering a valuable alternative perspective.

“We were very happy with the marketing coverage and the price achieved, and ended the campaign with the feeling that no stone had been left unturned.”

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