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Home / Bay of Plenty Times

Commercial consents boom in Tauranga

Carmen Hall
By Carmen Hall
Bay of Plenty Times·
26 May, 2017 07:36 PM4 mins to read

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Papamoa Plaza manager David Hill says it was one-third of the way through its development. Photo/file

Papamoa Plaza manager David Hill says it was one-third of the way through its development. Photo/file

More than $700 million worth of commercial building plans have been approved in Tauranga over five years -- and a business leader believes these could help protect the city from an economic downturn.

Priority One figures reveal about $722.6 million worth of consents were issued from January 2012 to last December.

The Bay of Plenty Times Weekend spoke with developers of the biggest projects -- including Tauranga Crossing ($27m), Port of Tauranga Ltd ($24m), PF1 Property No 1 Ltd ($23.8m), Papamoa Plaza ($15.4) and Cameron Rd JV Limited ($14.7m).

The Tauranga Crossing centre at Tauriko opened last year and has about 30 stores, including PakN'Save and The Warehouse.

The next stage was planned to open late next year, including the cinema complex, and the first stage of an enclosed mall, a spokeswoman said.

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Port of Tauranga Property and Infrastructure manager Dan Kneebone said the port had recently completed a significant capital projects programme.

This included two new Liebherr ship-to-shore cranes at Sulphur Point commissioned last year, 12 new straddle carriers at the Container Terminal at Sulphur Point and the capital dredging programme to deepen and widen the shipping channel, he said.

Another project included a 2ha warehouse that has just been built at Sulphur Point for Oji Fibre Solutions.

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''These recent capital projects have been part of the port's strategy to enable larger container ships and to accommodate growth,'' Mr Kneebone said.

PF1 general manager Simon Woodhams said the company first invested in Tauranga in 2005 and bought a 7.4ha site at 124 Hewlett's Road, neighbouring the port, which was occupied by Carter Holt Harvey and used for making and distributing plywood.

Two consents worth $23.8m to build bulk storage units were issued in 2015 and last year. The estate now had eight tenants employing 75 staff including Bulk Storage, Glencore Grain and Regal Haulage, Fonterra and Balance Agri Nutrients.

For the right opportunity ''yes we would invest in more property in Tauranga,'' Mr Woodhams said.

Manor Group Investment Trust chief executive Adam Yates said the organisation had owned 306 Cameron Rd for almost 20 years and always intended to develop an iconic building there.

The office and retail complex was a joint venture with Auckland-based Watts Group Investments and started after a proposal to develop premises for the Inland Revenue, he said.

The project was finished last December and Mr Yates said public feedback about the site's improvement had been positive.

There were five tenants committed to the building with Inland Revenue taking the most of the space. There were more than 200 people working in the building with capacity of up to 600.

Tauranga was a leading growth economy, he said.

''It is underpinned by several strong industries and attracts high-quality people aiming to live in the city. The redevelopment of areas around the city, including the civic area and the university will only improve the strong characteristics of the city.''

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Papamoa Plaza centre manager David Hill said it was one third of the way through its development ''so whatever we have spent so far we will spend that again twice''.

Mr Hill said the directors of plaza owner Tinline Ltd were so confident stages four and five, including a dining precinct and large format store, had been brought forward.

''We weren't planning that until 2020 but due to the high level of interest that has all come forward.''

Projects manager Annie Hill said the growth showed strong business confidence.

Companies were expanding or moving from elsewhere and the economic development agency said the growth was sustainable in the short to medium term, mainly due to building activity and job growth.

''We are also seeing increasing diversity in our business community and the growth of innovative, high-value exporting businesses, which means we will be less susceptible to economic downturns or global events.''

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Tauranga Mayor Greg Brownless said it was great ''that people are putting money where their mouths are and not just talking about Tauranga being a good place to invest''.

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