Leasehold Interest In Large Industrial Complex Goes Up For Sale

Monday, 13 July 2020, 12:28 pm
Press Release: Bayleys

The leasehold interest in the land and the buildings housing a substantial industrial warehouse complex and adjoining offices in Tauranga have been placed on the market for sale.

The property at 45 Tukorako Drive at the eastern end of Mount Maunganui’s industrial precinct features some 3,300 square metres of warehousing and offices, sitting on some 8.048 square metres of leasehold land.

Purpose built in 2006, the premises have been occupied since then by Intertruck New Zealand – one of the New Zealand’s biggest truck assembly firms.

The leasehold interest at the Mount Maunganui property, and the buildings on the land, are now being marketed for sale by deadline private treaty through Bayleys Tauranga, with offers closing on July 30. Salespeople Mark Walton and Jo Stewart said the factory, warehouse and associated offices were being sold as vacant - with Intertruck New Zealand giving notice that it will be relocating within the next 12 months to bigger premises in the area.

Walton said the various buildings within the Tukorako Drive property sustained:

• A 2,275-square metre vehicle assembly space with a 9.73-metre stud height, and large vehicle access through four roller doors spaced out around the premises
• An 881-square metre engineering warehouse with a 7.3-metre stud height - consisting of a workshop storage area and paint booth also accessible by large vehicles through four roller doors

and

• Some 144 square metres of office space – comprising a reception area, administrative rooms, toilets, locker rooms and a staff lunchroom.

The complex is built on concrete foundations with steel portal framing and Colorsteel roofing. It has a new build standards rating of 100 percent. The site is zoned Industrial/Heavy Manufacturing/Suburban under the Tauranga City Council plan, and is located just a short distance from the Port of Tauranga.

The head lease on the property is owned by Quay Lease Limited, and has an annual ground rental of $196,534 plus GST. The lease interest being sold currently runs through to 2026, and is perpetually renewable after that, with ground rent reviews every five years.

A rental assessment of the per square metre rates at the Tukorako Drive property - based on current rates of comparable sites within Mount Maunganui’s industrial precinct – has estimated:

• The workshop and warehouse space could be let for $122 per square metre
• The office space could be let for $160 per square metre

and

• The sealed yard could be let for $40 per square metre.

“On that basis, the buildings and yard within 45 Tukorako Drive have a forecast annual return of $459,410,” Walton said.

Stewart said the location’s multiple entry and exit roads allowed easy access for heavy vehicles and Tukorako Drive was a hub for heavy vehicle mechanical services businesses – with firms such as Scania, Performance Diesels, 0800 My Mechanic, and Power Hydraulics also based in the road.

She said potential buyers of the Tukorako Drive lease could also negotiate to purchase the five-tonne gantry crane and spray-painting infrastructure from Intertruck New Zealand.

“Because properties of this size and scale are quite niche in terms of the market, there is also the flexibility to negotiate either a delayed settlement date - which would allow any potential new leaseholder to plan their move to the site. Or Intertruck New Zealand would also consider a sale and leaseback arrangement as the company prepares to relocate,” Stewart said.

Last year, two other leasehold properties in Tukorako Drive sold. Number 44 Tukorako Drive – consisting of 679 square metres of vacant industrial and warehouse buildings sitting on 1,501 square metres of land sold for $840,000. Number 22 Tukorako Drive – consisting of 1,008 square metres of vacant industrial and warehouse buildings sitting on 1,501 square metres of land sold for $1,525,000.

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