Demo work starts on $20m complex site

MAKING WAY: Demolition work started earlier this week to remove a group of shops and businesses on the corner of 3rd Ave and Cameron Rd to make way for a $20 million office and retail complex.PHOTOS/ANDREW WARNER

Demolition work has started on the site of a new $20 million office and retail complex in central Tauranga which will be the new home of two government departments.

The four-storey development on the corner of 3rd Ave and Cameron Rd is a joint venture between local developer Manor-Group Investment and Auckland-based Watts Group Investments.

Manor-Group director Adam Yates did not confirm the identity of two tenants who had so far signed up to occupy the new building.

Mr Yates said there had also been inquiries from a number of other parties.

However, the Bay of Plenty Times Weekend can today reveal the Tauranga branches of Inland Revenue and Housing New Zealand will move into the new building in late November next year.

The development would be built on land owned by Manor-Group Investment.

Earthworks for the 7000sq m office and retail complex would start in October, and construction was due to be completed next November, Mr Yates said.

An Inland Revenue spokesperson said: "The entire staff of our Tauranga office will relocate to the building in late 2016.

"The terms and conditions of our lease agreement are commercially sensitive, so we are unable to provide further details relating to the agreement," the spokesperson said. Inland Revenue is a tenant of Regional House in Elizabeth St, while Housing New Zealand staff work from a leased office in Grey St. In a written statement Housing New Zealand area manager Teresa Pou confirmed its Tauranga office would be relocated to the new building. "Up to 20 of our Tauranga-based staff could move to the new building once it's completed in late 2016. We'll be just one of the tenants and will occupy less than one floor of the building.

"Our current office is a leased space which is larger than we require and no longer suitable for our purposes," Ms Pou said.

Mr Yates said nine tenants had already moved out to make way for major demolition works.

The last two tenants would move shortly, including Novelty - an Indian sweets and snacks store.

Novelty's director Puran Singh said he expected to move into a new store a few doors down in two-to-three weeks, which was previously occupied by a lunchbar and Tauranga Book Exchange

Mr Singh said he had secured a 10-year lease.

"It's very exciting as I will not only have a brand new shop but it's 50 to 60 square metres bigger than my current shop, and I'm also looking to employ two extra staff," he said.

Bay of Plenty Regional Council's general manager finance Mat Taylor said regional council staff occupy two floors of Regional House.

The regional council had no plans to move elsewhere," he said.

Mr Taylor said the council was yet to decide on a replacement tenant for Inland Revenue.