Retailers sought for prize site

Tauranga property companies are on the hunt for additional retailers to join anchor tenant Harvey Norman in the refurbished ex-Foodtown property on Cameron Rd.

The new development is coming on the market at a time when, according to Colliers International's latest research, the retail property market in Tauranga is showing strong fundamentals with yields and rents expected to remain steady over the next 12 months.

The former Foodtown property has been transformed by the property's long-time owner Matua Pine Trust in a development put together by Sharp Tudhope Lawyers, development manager Veros Property Partners, local construction company Hawes Building Solutions and local real estate agents.

Colliers International broker Duncan Woodhouse introduced Harvey Norman to the owners.

"The existing building retains the footprint of the Foodtown store, but is now subdivided into two stores and has been extensively remodelled and refurbished," said Hamish Murray, a senior lawyer with Sharp Tudhope.

Harvey Norman opens for business as a computer, whitewear and electrical store this month in a 1600sq m space. The balance of the building containing 1323sq m is available for lease.

Matua Pine Trust, a private family investment trust which has owned the property since the 1970s, elected to extend the site adding a new building footprint containing 1600sq m of new retail space.

Of the new space, two new local entrants to the Tauranga retail market are taking tenancies. The premises immediately across the parking area from Harvey Norman have been leased to furnishing retailer Furnish owned and operated by Calum Wilkinson.

The premises at the Thirteenth Ave end are under negotiation to a new start up specialist food provider. The whole complex provides free carparking for around 153 cars with easy access from either Thirteenth or Fourteenth Ave.

Duarne Lankshear, of Veros, managed the project from inception working closely with Sharp Tudhope Lawyers. Sharp Tudhope's Hamish Murray led the team in negotiating the surrender of Progressive's Foodtown lease, negotiating and documenting the Harvey Norman and other tenancies and the design and build construction contract with Hawes. Colliers, Associated Realty, Bayleys and Ray White all hold general authorities to lease the balance of the site.

"With a significant refurbishment of the supermarket building almost complete, as well as the construction of new shops, the property will become a multi-tenanted, large format retail hub in a central Cameron Rd location, which we expect to be desirable to retailers," said Mr Woodhouse.

"Larger retail units which offer the excellent visual exposure of a central Cameron Rd location are very popular."

Colliers's latest survey showed that commercial property investors in Tauranga and Mt Maunganui had the biggest improvement in confidence of all cities in New Zealand last quarter.

Simon Clark, CEO of Colliers International's Tauranga office, believes the big jump in positive sentiment is largely due to the return of population growth to the region.

"There is now a noticeable increase in the number of people moving to Tauranga and Mt Maunganui after a lull during the doom and gloom years. People are now more able to free up capital and move here for a lifestyle change, activity which is fuelling the building industry and a range of other sectors in the business landscape locally."