Landmark sale in Tauranga's CBD

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The new Trust Power building on Durham St. Photo/John Borren
The new Trust Power building on Durham St. Photo/John Borren

A new building which will be home to Trustpower in Tauranga's central city has been sold for just over $40 million.

The newly-built, three storey 6000 sqm office building at 108-128 Durham Street was sold to an investment group based out of Queenstown.

The deal was brokered by Simon Clark and Duncan Woodhouse of Colliers International.

Mr Clark said Colliers' Auckland and Queenstown offices introduced his team to the buyers, who were looking for high quality buildings in growth cities with substantial tenants on long leases.

"We approached the vendors - Zariba Holdings - and after several months of negotiation a deal was concluded late last month.

"Once the buyers inspected the building and saw the quality of the construction - its unique design and its central location - they immediately knew it was the right type of asset for their portfolio."

The building has just been completed by CBC Construction, on time and to budget, after an 18 month construction period, and the tenant, Trustpower, has started moving their 500-plus staff from their Mount Maunganui-based industrial depot to the building, Mr Clark said.

"This high quality building offers the new occupiers a state-of-the-art facility, with a truly grand design centre atrium running up between the three levels of offices, a ground floor cafe and large balcony to the top floor with views towards the harbour, Mount Maunganui and the ocean."

Mr Clark said the purchasers were looking for further investment in the region and currently had another complex under contract in Tauranga.

A spokesperson for the purchasers said they want to invest in growth regions like Tauranga which are attractive to their investor group - particularly quality buildings with secure rental incomes like the Trustpower building.

Zariba Holdings has owned the site, previously occupied by the Bay of Plenty Times, for a number of years.

Zariba managing director Dwayne Roper said the company was excited to develop such a substantial office building in the Tauranga CBD once Trustpower approached them for new premises.

"It's great to be involved with such a substantial locally based company as Trustpower who are wanting to bring their 500 staff back in to the CBD.

"This development I think is a turning point for the city, with new investment pouring back into the downtown area and the construction of the new university campus starting next year. We own other sites in the CBD and are keen to be involved in its revitalisation.

"Tauranga city needs more people working and living in the CBD to stimulate the retail and hospitality areas."

- Bay of Plenty Times

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