By Graham Skellern
An Auckland developer has signed a conditional deal on a high-profile commercial block in downtown Tauranga and is expected to construct a multi-level office building on it.
The sale of the Bay Nissan and Bay Prestige site on Cameron Rd is due to be completed in early March.
The developer,
making his first move in Tauranga, has signed up for the 4200sq m front portion of the corner block that also borders Elizabeth St and First Ave.
Long-time owner Farmer Motor Group will lease the site until it moves into its $13 million state-of-the-art auto village on Hewletts Rd in mid-2008.
The group has also retained the back portion of the 6300sq m site - with access from First Ave - and will continue to operate its parts and service division there, including a five-bay workshop.
Another 1200sq m of industrial land in First Ave West will be sold separately, possibly through auction.
Farmer group executive chairman Peter Farmer said there would be a significant development on the Cameron Rd site. The focus would be on commercial, primarily offices and supported by some retail.
The Farmer group received eight tenders for its prime commercial block and Mr Farmer said the sale and purchase agreement with the out-of-town developer was "the best simple and clean offer".
He would not disclose the conditional sale price but with the whole site having a capital valuation of $10.7m and the developer buying two-thirds of it - the price could be close to $7m.
The Farmer group begins building its new 11,000sq m auto village on the old BP truckstop in Hewletts Rd in April. When finished, the group will combine its four dealerships and eight brands into a mega retail and service centre.
