Arguably one of the best future development sites in the Tauranga CBD is on the market, with four years of holding income in place to allow a developer to navigate a path to a higher and better use for the landholding.
The substantial circa-2,449sqm amalgamated parcel of land across four freehold titles is at the high-profile corner of Spring and Durham Streets and has dual access.
The sealed and fully-fenced site is leased to the Bay of Plenty Regional Council for its Tauranga public transport operations facility, providing off-street space for up to 12 buses to lay over between trips, along with essential amenities for drivers on rest breaks.
The property returns net annual holding income of $296,000 plus GST and outgoings, with the lease having a final expiry of 31 March 2030.
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The site is zoned City Centre Business and located within Zone A of the current City Plan indicating potential for future large-scale development, with no building height limit to allow greater vertical density.
The landholding at 63-69 Spring Street and 66-72 Durham Street, Tauranga is for sale by deadline private treaty closing Thursday 12 March, unless sold prior, through broker Rory Brown of Bayleys.
Declaring it an opportunity-laden proposition for developers looking to secure a premium site with scale in a highly sought-after central location, Brown says a forward-thinking buyer could get a foothold in the CBD ahead of the next real estate cycle.
“While currently effective as a bus transit zone, the land is underutilised and from a build-height and geotech perspective, it’s got great development credentials.
“The site could be optimised through a smart redevelopment plan in line with favourable zoning which would allow a mixed-use project with vertical scale.
"Whether that’s in the form of a commercial/residential/retail development, student accommodation or a hotel, the four years of remaining holding income would give a developer workable runway to conceptualise a new project.
“Population and business growth throughout the Bay of Plenty continue to support demand for quality commercial premises. Being at the eastern point of the golden triangle, New Zealand’s fastest-growing economic corridor, Tauranga is well-poised to leverage connectivity and infrastructural advantages.”
Brown expects interest from local and national development entities, and says with economic fundamentals improving, developers are back in the arena.
“This was evidenced when I recently sold 219 Cameron Road to a group of Auckland developers, who I understand to be planning student accommodation for the site.
“Multiple cranes on the CBD skyline indicate a resurgence of build activity as the CBD regroups. Tauranga’s city centre is undergoing a significant period of transformation, with major public and private projects reshaping the CBD, and the waterfront area having undergone revitalisation.
“The new Te Manawataki O Te Papa civic centre, plus high-quality commercial office, retail and hospitality projects including the Northern Quarter Building, Panorama Towers, and the Craigs Investment Parters Building, demonstrates the confidence and commitment being shown.
“The subject site for sale represents an untapped opportunity with scale, and a blank slate for an incoming owner with the benefit of market-aligned rental income to prop up potential redevelopment options.”
- Supplied by Bayleys
