A centrally located large-format retail complex in Tauranga that is home to a range of prominent tenants is being presented to the market for sale and shapes as a compelling purchasing opportunity for astute investors.

262-266 Cameron Road has 3,615sq m of total net lettable area on a freehold site that spans 4,908sq m.

The property has a weighted average lease term of 5.8 years across the current occupants of Noel Leeming, Chemist Warehouse, Animates, and Elite Fitness. The total combined net annual rental income from the property is $1,183,992 plus GST.

There is excellent on-site and street car parking that provides convenience for customers, while the property, which has three buildings, has triple street frontage owing to its corner site ensuring high levels of visibility to passing traffic.

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The surrounding businesses include retail, offices, and trade supply firms. Tauranga’s CBD, which is going through a huge growth phase boosted by significant investment, is only a short walk away.

Cameron Road is a high-capacity dual lane carriageway that brings vehicle and cycle access from First and Second Avenue, as well as the southern suburbs of Gate Pa, Greerton, and Pyes Pa into the central city.

Colliers Brokers Simon Clark, Peter Herdson, and Blair Peterken have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 27 February, unless sold prior.

Appliance retailer Noel Leeming is the anchor tenant at the property and occupies 2,011sq m of space. Their eight-year lease runs until 30 June 2031.

The building they are in was recently extended and split into two tenancies and they now share it with Chemist Warehouse who lease 625sq m. Their rental agreement also runs until June 2031.

The building Animates occupies, which faces First Avenue, was constructed in 2004 and spans 493sq m. It has an open plan retail showroom, rear storage area, staff amenities, and mezzanine storage.

The Elite Fitness building stands alone with prominent frontage to Second Avenue and offers 486sq m of space. It was built in 2006.

Clark, Managing Director at Colliers Tauranga, says this complex is home to some of New Zealand’s most well-known retailers that are hugely popular with consumers.

“These household names will be familiar to shoppers throughout the country and many of the occupants are firmly established in this prominent location,” Clark says.

“Investors will be attracted to the income diversity on offer from this property, which is a highly desirable split-risk investment.

“There is built-in rental growth through a mixture of annual increases and market reviews across the tenancies. This will add further appeal to this opportunity for buyers.”

There is a resurgence of commercial construction in central Tauranga with new large-scale office buildings set to provide a fresh look to the city. These properties will be occupied by council and corporate users and will breathe new life into the CBD.

Public amenities such as a new library and courthouse are also taking shape, alongside new hotel and conference facilities.

Herdson, National Director of Capital Markets at Colliers, says the revitalisation of Tauranga’s CBD means this property will potentially benefit from improved foot traffic and visitor numbers in the future.

“As well as the ongoing commercial construction, there are new apartment developments that will also contribute to putting more people into central Tauranga in the coming years,” Herdson says.

Peterken, Director of Capital Markets at Colliers, says this property will catch the eye of discerning investors through its attractive mixture of national tenants and convenient parking in a prime location that is underpinned by potential long-term capital gains from this large commercial site.

- Supplied by Colliers