Retail site generates $356k in income

12 Owens Place in Mount Maunganui was built in 2014.

An investment property in Mount Maunganui's bulk retail precinct is is up for grabs.

The retail building, which sits on a 2,826sq m site at 12 Owens Place, comes with a long lease to a national furniture brand and is being marketed by Colliers International for sale by deadline private treaty. Offers close at 4pm on August 1, unless it is sold earlier.

Simon Clark, managing director of Colliers Tauranga, says the property was built in 2014 and has an eight-year lease to Hunter Furniture, which also operates a La-Z-Boy branded shop in the premises.

"The lease returns $356,949.74 plus GST in net annual rent, plus outgoings.

"There are also market rental reviews upon renewal, capped at 10 per cent."

Duncan Woodhouse, of Colliers Tauranga, says: "The property is zoned industrial but has resource consent in place for furniture retail, as well as ample shared parking.

"The building includes a high stud, open span retail space split into two tenancies, with shared facilities in between, both of which are leased by Hunter."

The property sits alongside several other large format retailers, including Harvey Norman, Big Save, Ashley Furniture, Carpet Court, Bedpost, Noel Leeming and Warehouse Stationery.

The property is also near Tauranga's Bayfair retail hub. "The property also benefits greatly from its proximity to Bayfair, which has recently been totally renovated and extended with a multiplex cinema, a food precinct and more than 40 new stores," says Woodhouse.

"This location is ideally situated halfway between the downtown Mount Maunganui and the hugely growing seaside suburb of Papamoa. Customers are usually travelling between these suburbs and to Tauranga along the adjoining Maunganui Road."

A new overbridge, which is due for completion in 2021, will create an elevated view of the property and its digital signage, as well as much better vehicle access.