Insurance broking offices poised to attract premium interest from property investors
The land and modern building housing the Bay of Plenty branch of one of New Zealand’s largest independent insurance broking houses has been placed on the market for sale.
The 978 square metre commercial office building at 1 Valley Grove in the Tauranga suburb of Bethlehem sits on 1,310 square metres of freehold land – housing two separate business tenancies.
The location’s anchor tenant is BrokerWeb Risk Services - one of New Zealand’s largest independent insurance broking houses – with six branches throughout New Zealand.
The company specialises in the provision of insurance broking and risk management services for corporate, commercial, rural and domestic insurance buyers. BrokerWeb Risk Services’ Bethlehem branch employs some 12 staff in a spacious open-plan workplace format supported by various small meeting rooms.
BrokerWeb Risk Services is currently on a six-year lease running through until 2023, with three further three-year rights of renewal. The company occupies 285 square metres of office space.
Meanwhile, the secondary tenant is financial advisory and accounting firm Anthony Harris Ltd, which is currently on a lease running through until 2019 occupying 250 square metres of open plan space.
The two tenants share a tiled entry foyer with bifold doors overlooking an outdoor deck, along with sharing staff kitchen and bathroom and shower amenities. Combined, the two tenancies at 1 Valley Grove return a net annual rental of $144,128 plus GST.
Built in 2008 specifically to accommodate commercial businesses, the fully air conditioned building with suspended tile ceilings has an A-grade rating incorporating excellent natural light.
The Valley Grove property is being marketed for sale by auction on August 2 through Bayleys Tauranga. Salesperson Lynn Bradley said the concrete block building had secured and covered basement parking for 14 vehicles, with an additional three uncovered parking spaces at the front of the property.
“As a comparatively modern property which has been meticulously maintained over its relatively short lifespan, the building’s suburban location is perfectly suited for the needs of its small-to-medium-sized office tenants,” Mrs Bradley said.
“The property should have huge appeal to the commercial market as a strong passive investment opportunity.”
A Western Bay of Plenty socio-economic planning report produced by the National Institute of Demographic and Economic Analysis (NIDEA) this year identifies that ‘Tauranga West’ – which encompasses the suburb of Bethlehem - is poised to undergo substantial land and building redevelopment over the coming 50 years.
“Continued infill development is anticipated. Redevelopment of some sites is expected to maximize site potential, with a number of large vacant sites to be developed,” said the report.
The report estimates that Tauranga City’s population will grow by 37 percent - from 119,800 in 2013 to 164,100 in 2033. Bethlehem was recognised as one of city’s primary urban growth areas capable of sustaining the annual population increase.
‘greenfield’ sites around Bethlehem are identified in
the report, including:
• Large blocks of land off Beaumaris Boulevard and Cambridge Road
• Release of dwellings in the Vines retirement village
• Further development of the Kempton Park and Bethlehem Shores retirement villages
• Further development of Bethlehem Country Club
• Opening up the Smiths Farm Special Housing Area
• Expansion of the Ryman Healthcare retirement village.
Mrs Bradley said that with Tauranga’s urban boundaries pushing ever northward, the Valley Grove offices some 6.5 kilometres from the city’s central business district would continue to hold a strong appeal for investors wanting to own commercial on the fringe of the suburb’s town centre.
“As a venue purpose-built to accommodate a professional services business, such as BrokerWeb Risk Services and Anthony Harris Ltd both currently in occupancy, the property will benefit long term from the demands on such firms by a growing suburban population – anything from a medical centre through to lawyer’s chambers,” she said
“Bethlehem town centre will continue to prosper from the area’s growing population, and while there are multiple locations earmarked for residential expansion around the suburb, commercial properties this close to the central business district are constrained by existing use – ensuring those there now will be there well into the future.”
Immediately across the road from the Valley Grove building is Bethlehem Shopping Centre whose anchor tenants include Countdown and Kmart.