A prominent industrial property on a high-profile corner site in Rotorua is available for purchase, giving buyers a seldom seen opportunity to secure a large-scale asset with holding income and significant development potential.
Strategically positioned on the corner of the major traffic intersection of Fairy Springs Road (State Highway 5) and Clayton Road, the site comprises a significant warehouse premises on 4.45ha of land within an established industrial precinct.
The existing building on-site provides 13,200sq m of warehouse and ancillary office space and is currently partially occupied by timber manufacturing firm Claymark as a distribution hub.
There is over 8,808sq m of total vacant space, presenting an opportunity for a new owner to increase net income in the future.
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Claymark’s lease at the freehold property runs until mid-2029, with one further right of renewal for three years, but there are demolition and development provisions in the landlord’s favour, opening a pathway for the property to be repositioned earlier.
At the rear of the property there is 2.18ha of surplus land with an existing subdivision consent, increasing the broad array of development options that could be pursued in the short to long term.
The highly visible property benefits from excellent access to key arterial routes and is close to the intersection of Clayton Road, Lake Road, Maisey Place, and State Highway 5. The CBD is also only a few minutes away.
Colliers Brokers Alan Pracy, Mark Rendell, and Blair Peterken have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 18 November, unless sold prior.
Pracy, Director at Colliers Hamilton, says the property will hold appeal for investors, developers, and owner-occupiers.
“There is considerable development upside attached to this offering given the scale of the landholding. In combination with the consent being granted for the subdivision of the vacant land, there are a range of ways the property could be repositioned,” Pracy says.
“The holding income that is in place from the existing tenant will allow the new owner to enjoy a steady rental stream before strategically planning their next moves for the property.
“Given there is also vacant space at the property, there may be short-term leasing opportunities that could be explored to generate further rental income.”
Rendell, Commercial and Industrial Sales Broker at Colliers Rotorua, says the surrounding area is characterised by a strong mix of industrial, trade, wholesale, and large format commercial occupiers.
“Well-known firms such as ITM, PlaceMakers, and Bunnings are all nearby and the Fairy Springs/Mangakakahi precinct has continued to develop as an important commercial and industrial hub for Rotorua,” Rendell says.
“Further key amenities such as a supermarket and service station are also only moments away, alongside further supporting retail stores.”
Known as one of New Zealand’s most sought-after tourism destinations, Rotorua is approximately one hour from Tauranga, ensuring the property offers connectivity to the wider Bay of Plenty region.
Peterken, Director of Capital Markets at Colliers, says the property has many of the key fundamentals that make it ready for redevelopment.
“A future development at the site could see the new owner maximise its potential and unlock the true value of the landholding,” Peterken says.
“Opportunities like this are seldom found in Rotorua and this property offers prospective purchasers the chance to acquire a significant asset in a busy location.”
- Supplied by Colliers
