Fairy Springs units to be sold at auction

One of the businesses at Rotorua's Redwood Centre.

The property developer behind successful suburban retail and commercial hub Redwood Centre is now selling off a near-identical precinct on the other side of town.

The Fairy Springs Rd complex - on a high profile 6300sq m site which was Orderings Nursery - was completed in March last year.

Now five of Fairy Springs' 10 individual tenancies are being sold off too. The portfolio of properties is being marketed by Bayleys Rotorua and will be sold individually at auction on April 16.

Bayleys Rotorua leasing specialist Mark Rendell said the five Fairy Springs units up for sale ranged in size from 87sq m to 279sq m, and all had freshly-negotiated leases.

Mr Rendell expected the Fairy Springs sites to follow in the footsteps of the Redwood sell-down. All of the new properties going up for auction had either a 3 per cent annual rent increase built-in, or were linked to CPI increases - giving new owners guaranteed rental growth, he said.

"With a high passing traffic count - sustained by a well-established surrounding resident population - we are expecting strong buyer interest from investors in Rotorua and the wider Bay of Plenty. Again, this ownership demographic will replicate what has been achieved through Redwood.

"The appeal comes from having new built premises, constructed to 100 per cent of New Building Standards, with a diverse range of established tenancies on long leases. It's close to the perfect buyer check-list."

The tenancy mix within the Fairy Springs hub is anchored by the Fairy Springs Medical Centre and Pharmacy, which Mr Rendell said was another magnet for pulling in adjunct customers throughout the day. The medical centre, however, was not part of the sell-down.