A portfolio of tenanted light-industrial premises clustered together in a suburban hub are for sale at Tauranga, with the option to buy any or all of the four individual properties.
The four properties are at 61-65 Maleme St, on Tauranga's southern perimeter, and earn combined net annual rental of $637,562 - which is increasing from the start of the 2018/19 financial year.
Each block sits on its own land title.
Tenancies, some of which have been operating from the Maleme St address for more than 15 years, include businesses operating in the engineering, heavy vehicle servicing, and civil contracting sectors, along with a place of worship, and a lunch bar.
The portfolio is being marketed Bayleys Tauranga's James Ross, with tenders closing on December 7. It features in Bayleys' latest Total Property magazine and Ross says potential purchasers have the option to tender for one, two, three or all four of the individual properties.
They are as follows:
• 61 Maleme: The 2018.7sq m single storey building on the eastern side was constructed in the 1990s and contains multiple units ranging from 212sq m to 387.7 sq m. The building has a partitioned wall through the centre, creating eight tenancies, each with their own offices, toilets, and staffroom amenities on mezzanine levels. The block sits on 4642sq m of freehold industrial-zoned land and generates net rental of $177,500 per annum.
• 63 Maleme: This single-storey building is located at the rear of the complex and was constructed in 1988. It sits at the base of a bush-clad hill and contains five units varying in size from 200sq m to 384sq m. The units have a 4.2m-high stud, with 4.5m-wide roller doors front and rear. The block sits on 8624sq m of freehold industrial-zoned land and generates net rental of $139,718pa, which increases to $155,718pa from the start of the 2018 financial year.
• 65A Maleme: This two-storey 1456sq m building was constructed in 2001 and renovated in 2015. Built on concrete foundations with steel and timber framing and aluminium joinery, the building sustains three warehousing tenancies - all with office space ranging in size from 444sq m to 557sq m. The block - located in the front of the industrial park and with some 63m of street frontage - sits on 3162sq m of freehold industrial-zoned land and generates net rental of $173,019pa.
• 65B Maleme: This is a 1564sq m building on the western side, built in 1987. It sustains seven units ranging in size from 88sq m to 326sq m. All have a 4.2m-stud, with 4.5m wide roller door access. The block sits on 4631sq m of freehold industrial-zoned land and generates net rental of $147,325pa.
Ross says the area is one of Tauranga's original city-fringe light industrial suburbs. It links up to SH29 which runs between Hamilton and port facilities at Mount Maunganui.
"The hub benefits from dual access points, wide sealed driveways, and on-site car parking. With 18 tenancies across the combined four buildings, this offers investors an excellent split-risk portfolio," says Ross.
"It's rare to have an entire industrial park come on to the market as one lot. Normally, the individual tenancies are within standalone properties, which have been unit titled, or an individual building within the complex comes up for sale.
"The Maleme St industrial park was created more than 30 years ago when the availability of undeveloped land in this part of Tauranga was more prevalent. Finding the space now to sustain such a development would be incredibly difficult."
Business activities in the Maleme area includes light industrial, building and construction supply premises and yard based retailers, service stations, office space, and port infrastructure firms. The owners, who are retiring after many years, recommend interested parties do a comparison between the rentals in newer blocks in the Mount area and Tauriko.