The sale of the new Trustpower building marks the largest property transaction ever in Tauranga’s CBD.
The newly-built, three storey 6,000 sqm office building at 108-128 Durham Street, Tauranga was purchased for just over $40 million in a deal brokered by Simon Clark and Duncan Woodhouse of Colliers International.
The buyers are an investment group based out of Queenstown.
Clark said Colliers’ Auckland and Queenstown offices introduced his team to the buyers, who were looking for high quality buildings in growth cities with substantial tenants on long leases.
“We approached the vendors – Zariba Holdings – and after several months of negotiation a deal was concluded late last month.
“Once the buyers inspected the building and saw the quality of the construction – its unique design and its central location – they immediately knew it was the right type of asset for their portfolio.”
The building has just been completed by CBC Construction, on time and to budget, after an 18 month construction period, and the tenant, Trustpower, has started moving their 500-plus staff from their Mount Maunganui-based industrial depot to the building, Clark said.
“This high quality building offers the new occupiers a state-of-the-art facility, with a truly grand design centre atrium running up between the three levels of offices, a ground floor café and large balcony to the top floor with views towards the harbour, Mount Maunganui and the ocean.”
Clark said the purchasers are looking for further investment in the region and currently have another complex under contract in Tauranga.
A spokesperson for the purchasers said they want to invest in growth regions like Tauranga which are attractive to their investor group, particularly quality buildings with secure rental incomes like the Trustpower building.
Zariba Holdings has owned the site, previously occupied by the Bay of Plenty Times, for a number of years.
Zariba managing director Dwayne Roper said the company was excited to develop such a substantial office building in the Tauranga CBD once Trustpower approached them for new premises.
“It’s great to be involved with such a substantial locally based company as Trustpower who are wanting to bring their 500 staff back in to the CBD.
“This development I think is a turning point for the city, with new investment pouring back into the downtown area and the construction of the new university campus starting next year.”