The more than 7,600-square metre site for sale in Tauranga’s fast-growing Tauriko Business Estate will soon give rise to a purpose-built depot fully leased to transport and logistics heavyweight Fliway.
The sale comes as the logistics sector in Tauranga and around New Zealand experiences a Covid-era boom, driven by a surge in online purchases and new local opportunities and challenges posed by global freight and supply chain disruptions.
Fliway Transport Limited will fully occupy the facility on Matakokiri Drive, Tauriko, on a new 10-year lease due to begin in September, with three further two-year rights of renewal.
It will pay annual net rent of $450,000 plus outgoings and GST, along with a further guarantee payment of $10,000 per annum. The lease agreement includes two-percent fixed annual rent increases, replaced by market reviews in 2028 and at renewals.
Fliway is one of the largest fully integrated logistics providers operating in New Zealand. It offers seamless global supply chain solutions, from international freight to warehousing and domestic delivery to businesses and homes.
The Fliway group has more than 400 staff, 12 branches and five warehouses across the country. Fliway Group New Zealand was recently acquired by NZ Post, extending its parcels business into larger items and broadening its logistics and supply chain capability.
“The opportunity to buy a quality new-build industrial property in this coveted location is sure to generate intense investor interest,” said Bayleys salesperson Mark Walton.
“This will be bolstered further by the presence of an A-grade tenant of the ilk of Fliway, whose ownership by NZ Post gives the added comfort of a lease backed by a state-owned enterprise.”
The property at Lot 1, 351 Matakokiri Drive, Tauriko, Tauranga, is being marketed for sale through Bayleys Tauranga. Sale will be by deadline private treaty closing on Wednesday 13 April, unless it is sold earlier.
Walton said the offering consisted of an approximately 1,959-square metre building due for completion in August, on some 7,682 square metres of industrial-zoned freehold land.
“Fliway has grown rapidly in Tauranga and has chosen a developer and location to support its ongoing expansion plans. It has worked closely with the developer and their consultants to select a site and provide detailed specifications for a building that will accommodate their growth and provide efficiencies to their business,” Walton said.
The project has building and resource consents, and construction is underway.
“Designed by Cube Architecture and built by well-regarded local construction firm iLine Construction, this will be a modern high-stud industrial facility.
“The warehouse has a net lettable area of some 1,798 square metres, with an additional 488-square metre canopy and highly efficient loading access via 12 docking bays on each side.”
Some 161 square metres of A+ grade office and amenities sit to the front of the property.
The external walls are being constructed with long-run steel. A large concrete yard will facilitate easy vehicle access onto and around the site, with full drive-around capability and plenty of car parks.
The site for sale sits near the intersection of Matakokiri Drive and Kaweroa Drive.
Walton said this positioned it incredibly well for the long term, with Kaweroa Drive designed to accommodate a future cross-city link between State Highway 29 (Kaimais) and State Highway 36 (Pyes Pa).
“Tauriko Business Estate is Tauranga’s fastest growing industrial area. It has excellent access to rail links and state highways leading to Auckland, Hamilton and Rotorua and is minutes from the Port of Tauranga and Tauranga’s central business district.
“The estate adjoins the new Tauranga Crossing Shopping Centre which has become the largest shopping centre in the region. It is also opposite The Lakes, one of Tauranga’s premier recent residential subdivisions which has just sold out with 2,000-plus sections.”
A new residential zone comprising over 3,500 sections planned for Tauriko West would support further growth and employment in the area, Walton said.