Something cooking for property investors

Something cooking for property investors as high-end kitchen designer’s premises goes up for sale

The land and buildings housing a leading high-end kitchen and bathroom designer and manufacturer have been placed on the market for sale.

The property at 12 Whiore Avenue, in Tauranga’s fast-growing Tauriko Business Estate, is tenanted by Kitchen and Interior Co – an award-winning New Zealand firm which specialises in supplying high-quality cabinetry for both residential and commercial projects… including kitchens, bathroom vanities, laundries and wardrobes.

Located on a freehold site overlooking the Tauranga Crossing retail development, the two-storey premises incorporates a large warehouse and sizeable open showroom, plus offices and amenities.

The property is tenanted by Wilkinson Cabinetry & Design Limited - trading as Kitchen and Interior Co, under a new five-year lease through to 2025. The lease is backed with personal guarantees. Two further five-year rights of renewal potentially extend the lease out to 2035.

The lease generates annual net rental income of $80,000 plus outgoings and GST per annum, with built-in market reviews scheduled every three years, in addition to two-percent annual rental increases in each non-review year.

The property at 12 Whiore Avenue was built in 2017 in the first stage of the Tauriko Business Estate, and is being marketed by Bayleys Tauranga. Salespeople Mark Walton and Myles Addington said the near-new 542-square metre building on approximately 1,510 square metres of freehold industrial-zoned land was purpose-designed and built to accommodate the high-end kitchen and interior supplier.

Mr Walton said the large clear-span warehouse - which made up around two-thirds of the property’s floor space - had a stud height of approximately 5.5 metres to 6.3 metres, and incorporated three container-height roller doors.

“This is complemented with a 67-square metre open showroom, plus nearly 100 square metres of offices and amenities across both the ground and first floors. A secure, fully-fenced concrete yard provides ample space, easy access and excellent on-site parking,” Mr Walton said.

“The 542-square metre building is relatively large but the property is not ‘overbuilt’, with a low building-to-site ratio ensuring there is good movement of vehicles and stock around the secure site.

“As the Whiore Avenue property is also standalone and freehold, it means occupiers are not restricted by body corporate rules that might be a challenge for some tenants.”

The site was zoned Industrial (7T) under the Tauranga City Council Operative plan, providing for a range of industrial activities, said Mr Walton.

Mr Addington said access to the property was via a right of way in what was an increasingly popular and rapidly-expanding industrial estate. Tauriko Business Estate now comprised 200 hectares of net developed lots and had attracted leading businesses including Allied Pickfords, Brother International and the Farmlands Co-operative.

“Over recent years, Tauriko Business Estate has grown to become one of the largest industrial estates in the Southern Hemisphere, and it is now recognised as one of the fastest-growing industrial parks in Australasia,” Mr Addington said.

“The strategic location of the Whiore Avenue property within this world-class industrial estate provides excellent connectivity to key markets and customer bases in Tauranga and the Bay of Plenty coast, as well as further afield to other markets across New Zealand – supported by easy access to major road, rail and sea networks.”

The property was located within 10 kilometres of Tauranga’s central business district and 16 kilometres from the entrance to Port of Tauranga – one of the driving forces behind the Bay of Plenty economy and the busiest port in New Zealand, he said

“It also benefits from the strong market and economic dynamics of the ‘Golden Rectangle’ area incorporating Tauranga, Rotorua, Hamilton and Auckland, and sits within a two-and-a-half hour drive of 50 percent of New Zealand’s population,” said Mr Addington.

“Business demand for Tauriko is expected to remain strong - underpinned by its proximity to The Lakes residential subdivision and the Tauranga Crossing retail development. These attractive local fundamentals have also been reflected in the strong growth of Tauriko land prices over the past few years.”

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