Significant redevelopment opportunity on Tauranga’s premier street

Significant redevelopment opportunity on Taurangas premiere street 1536x1040

A substantial development site is for sale on a strategically located stretch of Tauranga’s premier commercial street.

A substantial development site is for sale on a strategically located stretch of Tauranga’s premier commercial street.

The 7,683sq m property at 1170 and 1176 Cameron Road, Gate Pa, comprises two neighbouring lots on short-term leases, providing useful holding income.

Commercial zoning allows for retail, medical, office, high-density residential and many more uses up to a height of 12m, while the site’s central high-profile location ensures high demand from tenants.

Colliers International is marketing the property for sale by deadline private treaty closing at 4pm on Thursday 7 November, unless sold prior.

Simon Clark, Managing Director of Colliers Tauranga, says offers are invited on the two land parcels either together or individually.

“This is an outstanding opportunity to purchase two large and strategically located commercial sites which are ripe for development with zoning that allows a multitude of potential uses.

“Rarely does such a blank canvas come available where an astute developer has so many options.

“The property is situated in the heart of Tauranga in the established suburbs of Gate Pa and Greerton.

“The high-profile site has wide frontage onto Cameron Road, which is one of Tauranga’s main arterial roads.

“It brings traffic from the growing southwestern suburbs of Greerton, Pyes Pa, Tauriko and The Lakes, towards the city centre at the northern end.”

Clark says the site is close to the Gate Pa Shopping Centre as well as Tauranga Hospital to the north and Greerton township to the south.

“Gate Pa Shopping Centre includes a Mitre 10 Mega, New World supermarket, BP service station, Spotlight, plus 19 other retailers comprising mostly national brands.

“Greerton includes further retail including a Countdown supermarket, fast food, banks and a public library.”

Broker Rachel Emerson of Colliers Tauranga says the strategic nature of the site for sale is highlighted by sales activity in the area.

“One significant transaction was the $7.9 million sale of 1150 Cameron Road, which directly adjoins the property for sale. It was purchased by large format retailer Bunnings in October last year.

“Any future redevelopment of the Bunnings site will require demolition of the substantial existing improvements, which comprise older-style buildings previously occupied by Gilmours.

“The site for sale is a comparatively straightforward redevelopment proposition due to its relatively minimal existing improvements.

“The various buildings are generally in an average to poor condition, reflecting the vendor’s past intention to fully demolish and redevelop the site.

“As this property is predominantly a redevelopment opportunity, it is offered for sale on an ‘as is, where is’ basis.”

Jason Seymour, Capital Markets Director at Colliers, says the property will appeal to a wide range of national and international purchasers due to Tauranga’s impressive growth.

“Last year’s Census shows the Bay of Plenty is the second-fastest growing region in New Zealand. Its population grew 15.2 per cent to 308,499 between 2013 and 2018.

“Tauranga's population rose by some 22,000 people over the same period, expanding at a rate of 3.6 per cent a year. The city's population was 136,713, up 19.1 per cent since 2013.

“With 2.7 per cent of New Zealand's population, Tauranga is ranked New Zealand's six largest district by population size. Its population is projected to exceed 147,600 by 2024.”

The two lots for sale are of regular shape and flat in contour.

Wide frontage allows a new development to have great access and parking, but also offers excellent exposure to the high volume of passing traffic, which will be attractive to tenants.

Buildings may be constructed to a height of 12m up to the boundaries where zoned commercial on either side. At the rear, which is zoned residential, there may be the requirement for a setback.

The northernmost lot at 1170 Cameron Road directly adjoins Bunnings’ landholding. It comprises a 3,838sq m freehold site with 130sq m of improvements.

The neighbouring lot at 1176 Cameron Road comprises a 3,845sq m freehold site with 618sq m of improvements.

The property returns approximately $97,672 plus GST in net annual holding income.

A car dealership occupies 1170 Cameron Road on a one-year lease returning 61,133 plus GST in net annual rent. The lease expires on 31 December 2019 with no further rights of renewal.

The adjoining property at 1176 Cameron Road has three tenants on monthly terms returning $36,539 plus GST in combined net annual rent.


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Simon Clark

Managing Director

Tauranga

As the current licensee and owner of Colliers International’s Tauranga office, Simon prides himself on detail, problem solving and his ability to prepare properties to get the best possible price for his clients. Between his networks and local knowledge of the area, he knows the right people to get the job done. A keen motorsport enthusiast, Simon is also a regular competitor in the Targa New Zealand rally.

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Rachel Emerson

Industrial & Retail Broker

Tauranga

Rachel joined Colliers in 2017 with 24 years (and counting!) of property industry experience in Auckland, Wellington and Tauranga. 

Rachel offers her clients a strong background in all facets of real estate having worked in a wide spectrum of property roles for retailers, landlords and developers.   Roles include; Portfolio Leasing National Bank including both new branch rollout and CBD rationtionalisation,  CBD high rise property and portfolio management, shopping centre leasing, industrial land subdivision and sales.  

Rachel has unrivalled experience in the Tauriko Business Estate precinct having worked 10 years for the developer of the estate.  Rachel is proud of her association with the Tauriko Business Estate project and the growth this has enabled the Tauranga region and its businesses.

Rachel knows where you are coming from and how to get the best from a property opportunity. Her relationship network is strong and her ability to forge long term relationships is a key strength of hers.

Rachel is a former Chairperson of the Tauranga Branch of the Property Council of New Zealand and is still an active participant in and advocate for the industry.

Rachel’s interest in the property industry started young as a fierce family competitor around the Monopoly board as a child and then completing a Bachelor of Business Studies Majoring in Valuation and Property Management from Massey University then a Masters in Property Studies from Lincoln University.

Out of the office Rachel is a mum to 3 very active boys (one has a keen eye for Monopoly) and is an avid (although not entirely successful) game fisher.

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Jason Seymour

Director | Capital Markets

Auckland CBD

Jason has 29 years international experience in commercial sales, tenant representation, lease negotiation, corporate real estate strategy development, property management and building services design.

Jason joined Colliers International in 1991 to establish the engineering division in the Wellington office, and took on a national engineering role in 1993, incorporating the Wellington Property Management division in 1994. Jason transferred as a Director to the Colliers International Bangkok office in 1996, and in 1998 returned to Auckland to take up a role in commercial leasing brokerage, where he was consistently one of the top four leasing brokers in the market. In late 2005, Jason transferred to the Corporate and Institutional Sales team, specialising in sale and leaseback strategies, land development and large corporate sales.

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