Light Industrial Suburban Hub Portfolio Placed on the Market for Sale
A portfolio of tenanted light-industrial premises clustered together in a suburban hub have been placed on the market for sale – with the option to buy any or all of the four individual properties.
The four properties are located at 61 – 65 Maleme Street on the southern perimeter of Tauranga, and produce a current combined net annual rental of $637,562 – which is increasing from the start of the 2018/19 financial year. Each block sits on its own land title.
Tenancies – some of which have been operating from the Maleme Street address for more than 15 years - include business operating in the engineering, heavy vehicle servicing, and civil contracting sectors, along with a place of worship, and a lunch bar.
The portfolio is being marketed for sale by tender through Bayleys Tauranga, with tenders closing at 4pm on December 7. Bayleys Tauranga salesperson James Ross said potential purchasers had the option to tender for one, two, three or all four of the individual properties.
61 Maleme Street
The 2018.7 square metre single storey building on the eastern side was constructed in the 1990s and contains multiple units ranging from 212 square metres to 387.7 square metres. The building has a partitioned wall which runs through the centre – creating eight tenancies, each with their own offices, toilets, and staffroom amenities on mezzanine levels.
The block sits on 4,642 square metres of freehold industrial-zoned land and generates net rental of $177,500 per annum.
63 Maleme Street
The single-storey building at 63 Maleme Street is located at the rear of the complex and was constructed in 1988. It sits at the base of a bush-clad hill and contains five units varying in size from 200 square metres to 384 square metres. The units have 4.2 metre high studs, with 4.5 metre wide roller door access front and rear.
The block sits on 8624 square metres of freehold industrial-zoned land and generates net rental of $139,718 per annum, which increases to $155,718 per annum from the start of the 2018 financial year.
65A Maleme Street
Meanwhile ,the two-storey 1,456 square metre building at 65A Maleme Street was built in 2001 and renovated in 2015. Built on concrete foundations with steel and timber framing and aluminium joinery, the building sustains three warehousing tenancies – all with office space - ranging in size from 444 square metres to 557 square metres.
The block – located in the front of the industrial park and with some 63 metres of street frontage - sits on 3,162 square metres of freehold industrial-zoned land and generates net rental of $173,019 per annum.
65B Maleme Street
The fourth of the properties - a 1,564 square metre building on the western side was built in 1987 and sustains seven units ranging in size from 88 square metres to 326 square metres. All units have 4.2 metre high studs, with 4.5 metre wide roller door access.
The block sits on 4631 square metres of freehold industrial-zoned land and generates net rental of $147,325 per annum
Bayleys Tauranga salesperson James Ross said the Maleme area was one of Tauranga’s original city-fringe light industrial suburbs. Maleme Street links up to State Highway 29, the Tauranga bypass, which runs between Hamilton and the port facilities at Mount Maunganui.
“The hub benefits from dual access points, wide sealed driveways, and ample on-site care parking. With 18 tenancies across the combined four buildings, this offers investors a split risk portfolio,” Mr Ross said.
“It’s rare to have an entire industrial park come onto the market as one lot. Normally, the individual tenancies are within standalone properties which have been unit titled, or an individual building within the complex comes up for sale.
“The Maleme Street industrial park was created more than 30 years ago when the availability of undeveloped land in this part of Tauranga was more prevalent. Finding the space now to sustain such a development would be incredibly difficult.”
Business activities in the Maleme area includes light industrial, building and construction supply premises and yard based retailers, service stations, office space, and port infrastructure firms.
The owners of the property are retiring after many years and would recommend interested parties do a comparison between the rentals in newer blocks in the Mount Maunganui area and Tauriko.