Buyers Eye Prime Mt Maunganui Site Amid ‘chronic Shortage’ Of Industrial Property

A large Mt Maunganui industrial site for sale is expected to ignite a rush of buyer interest as Covid-related freight and supply chain issues fuel an acute shortage of industrial property in the market.

The well-presented warehouse building on more than 7,000 square metres of freehold land at 12 Aerodrome Road sits at a pivotal location near Tauranga’s port and airport in the heart of Mt Maunganui’s industrial precinct.

Bayleys salesperson Simon Maxwell says the sale comes amid soaring demand for industrial property in the precinct as supply chain disruptions and freight delays force businesses to seek more warehouse space for product storage, particularly around ports.

“Positioned close to the Port of Tauranga, the container terminal and Tauranga Airport, and within the ‘Golden Triangle’ linking Tauranga with Auckland and Hamilton, Mt Maunganui is arguably New Zealand’s best-placed industrial precinct,” says Maxwell.

“Soaring demand for industrial property is underpinned by the Golden Triangle’s role as home to the country’s two busiest ports. This is fuelling an ever-growing need for warehousing space.

“Industrial land values in the Mount have surged, driven by a chronic shortage of land. Vacancy rates are at all-time lows and, as a result, industrial rental rates have shown healthy growth.

“In this environment, industrial warehousing is gold, and the rush of buyer interest in the Aerodrome Road site is sure to reflect this,” said Maxwell.

The property is being marketed for sale by deadline private treaty closing on Thursday 3 March (unless sold prior), through Bayleys Tauranga.

The site is fully leased to hospitality and foodservice company Southern Hospitality Limited, generating net annual rent of $313,045 plus outgoings and GST. The current lease extends to mid-2022 with two further two-year rights of renewal and market rent reviews at lease renewals.

Bayleys salesperson Myles Addington says this could provide useful holding income for longer-term buyers seeking to develop or occupy the site, with substantial rental upside potential.

The building of approximately 3,568 square metres sits on some 7,021 square metres of freehold land. It is partitioned into two warehouse spaces of 1,730 square metres and 1,608 square metres, plus 230 square metres of offices over two levels.

“The property offers plenty of car parking and superb access and manoeuvrability for heavy vehicles, with dual street access points and full truck and trailer drive-around – perfect for the needs of large industrial occupiers.

“Its strategic location and regular rectangular-shaped site make it a prime candidate for future development.

“Industrial zoning supports wide-ranging activities including distribution, logistics, packaging, manufacturing, processing, engineering, cool-stores and marine-related businesses,” Addington says.

Numerous surrounding occupiers are engaged in logistics, warehousing and servicing activities.

“With multiple logistics depots, and excellent connectivity to city infrastructure, rail links and arterial routes including State Highway 2, the location is second-to-none,” says Addington.

Constructed in the early 2000s, the existing building features a concrete-slab foundation, steel framing, long run iron walls and roof cladding, with a new roof installed in 2018.

Most of the warehouse space has a working stud height of six to seven metres, reducing slightly in areas with deeper framing. The northern warehouse partition features five roller doors and a horizontal bi-folding door while the southern warehouse partition has four roller doors.

Changes to legislation mean that we will be asking clients for more information from 1 January 2019.

Learn more

© Scoop Media