With a track record of low vacancy rates and strong tenant demand for Mt Maunganui industrial property, investors will recognise the inherent value of a property now for sale in one of the region’s preferred precincts.

The multi-tenanted freehold offering at 2 Boeing Place, Mt Maunganui in the airport industrial precinct is seriously for sale and will be auctioned in August as the vendor realigns a commercial and industrial property portfolio.

The circa-1,002sqm L-shaped facility comprises four self-contained tenancies, each with roller door access, and is well-positioned on a prominent north-facing industrial-zoned 1,500sqm corner site at the intersection with Aviation Avenue. The property has drive-through dual street access allowing efficient vehicle circulation and tenant/client access, and there is onsite marked carparking on the fully-sealed site.

The well-maintained building has functional warehouse and office layouts with varying levels of fit-out, and there are three occupiers across the four units. Magnus Industries Limited, a specialist manufacturer for the export market, occupies two units – effectively close to 70 percent of the lettable area – with this tenancy having a glazed office/showroom entrance to the Aviation Avenue side of the property.

The balance of the property is occupied by Heat Tech, trading as Asset Testing and Certification Ltd (ATCL), an accredited testing inspection facility, and Thai Touch – a massage therapy business that utilises the property as a base for its three massage therapy studios across the Bay of Plenty.

The tenants are on varying lease terms which include rights of renewal and rent reviews, with the property returning annual net income of $170,244 plus GST.

Myles Addington of Bayleys Tauranga is handling the sale of the property which goes to auction on Wednesday 13th August, unless sold prior.

He says the freehold ownership structure elevates the property in the region’s industrial market as much of Mt Maunganui’s port-adjacent industrial property is leasehold.

“With no body corporate and a diversified income stream, this high-performing asset offers strong, passive returns with long-term upside. The property has a proven leasing history and there is strong occupier demand for efficient and accessible industrial space in this precinct which supports the attractive split-risk, diversified income stream.

“The airport precinct is one of the most sought-after commercial and logistics hubs in the Bay of Plenty and within the country’s economic golden triangle. Given the excellent connectivity to city infrastructure, rail links, the port, and arterial routes including State Highway 2, the location continues to bat above its weight for occupiers.”

Addington says the industrial zoning supports distribution, freight/logistics, engineering, manufacturing, processing and packaging operations and with land constrained in the Mt Maunganui market, the value of the subject property is assured.

“Off the back of a thriving regional economy with identified long-term growth, Mt Maunganui is one of New Zealand's most in-demand industrial locations, offering streamlined access to Port of Tauranga, the country's largest and busiest export port.

“The value of existing industrial stock is supported by the fact that there’s limited land supply in this part of the broader Tauranga market and while it is currently a well-performing asset, a new owner could also look to unlock potential upside through subdivision or unit-titling.”