A well-configured industrial facility in Tauranga that has a head tenant with a long-term lease is available for purchase, offering buyers the opportunity to acquire a high-quality asset with a steady rental stream.
Sitting in the popular Tauriko Business Estate at 34 Whakakake Street, the 5,084sq m high stud building is largely utilised as a warehouse that includes five gantry cranes and supporting office/amenities space.
The property is leased to Steelworks NZ, a well-known local structural steel fabricator that has been involved in major projects throughout Tauranga and across the upper North Island.
The company recently moved into this facility to streamline operations. The property sits on a 10,000sq m fully concreted yard.
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Their 11-year lease began in 2024 and provides $849,000 plus GST and operating expenses in net annual rental income. The agreement also includes fixed 2.5 per cent annual increases and future market reviews.
Colliers Tauranga Brokers Rob Schoeser and Simon Clark have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 20 August, unless sold prior.
The warehouse offers drive-through capability and is held in multiple separate portions, giving it future flexibility to be leased in several tenancies.
Schoeser, Commercial and Industrial Broker at Colliers Tauranga, says the property provides buyers with the chance to purchase a top-tier passive investment with substantial land and buildings.
"With multiple built-in rental growth mechanisms, discerning investors will recognise the considerable opportunity available to them to boost the income stream in the coming years through a low maintenance asset that is underpinned by a strong tenant covenant."
Clark, Managing Director at Colliers Tauranga, says the Tauriko Business Estate has become the city's most established industrial precinct in the south-western fringe.
"Now spanning over 200ha, the Tauriko Business Estate is home to major national and international operators with vacancy rates remaining tight, reflecting the continued demand for space," Clark says.
"The area's access to the motorway network places the Port of Tauranga, central Tauranga, and the wider Bay of Plenty and Waikato within easy reach."
Meanwhile, Schoeser, alongside colleague Rachel Emerson, is also marketing for sale a premium industrial offering at 75 Kaweroa Drive, which is only five minutes away.
The modern building constructed in 2022 has 2,635sq m of total lettable area, including canopy, and sits on a 4,000sq m freehold site.
It is for sale via deadline private treaty closing at 4pm on Thursday 13 August, unless sold prior.
Modcom Portable Buildings Ltd occupies the site on a 10-year lease that runs until 2032 and has two further rights of renewal of five years each.
The total net annual rental income from the property is $460,851 plus GST and operating expenses. The lease agreement includes two-yearly market reviews with the next due in December.
The layout and configuration of the building allow great heavy vehicle access to the warehouse via extra wide roller doors and fully concreted and fenced yards.
The asset's strategic positioning means it benefits from direct access to State Highway 29 and State Highway 36, which is the gateway to the greater Bay of Plenty and Waikato regions.
Significant roading investment is already underway in the area, with a new roundabout at the State Highway 29 and Redwood Lane intersection set to connect directly into the estate via Kaweroa Drive, improving freight efficiency and futureproofing access for occupiers.
Schoeser says the surrounding catchment is well established, with Tauranga Crossing shopping centre and The Lakes residential community nearby, supporting a strong local workforce and amenity base.
"With substantial infrastructure spend committed to the western corridor, Tauriko Business Estate is firmly positioned as a long-term growth precinct for industrial and commercial investment, making it one of the most sought-after commercial hubs in the Bay of Plenty region."
- Supplied by Colliers
