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Tauriko demand reflects strong local economic growth

Demand for land and buildings at Tauriko continues to soar, says Bryce Donne, Director of Element IMF, which has been developing the site over the past 14 years.

Donne said that almost all lots in the Stages just completed or under construction for completion in 2019 have been sold.

“And we’re working hard with all our stakeholders to deliver more land as soon as we can. We want to do this in a responsible fashion, ensuring the long-term functionality and amenity of the Tauriko Business Estate and its surrounds is maintained.”

The 2018 financial year was the business estate’s busiest yet, with more than 20 ha of titles delivered and sold. As of March 2019, Element IMF expects to have completed and sold 105 ha of net industrial land out of a project total net yield of approximately 175 ha, meaning it is well over halfway through the ambitious project.

“We’re working hard with all our stakeholders to deliver more land as soon as we can. We want to do this in a responsible fashion, ensuring the long-term functionality and amenity of the Tauriko Business Estate and its surrounds is maintained.” – Bryce Donne, Element IMF

There has been an average annual uptake of eight ha per annum since the first lots were delivered almost 12 years ago. There will still be 60 ha of net zoned land remaining, as of April 2019, or a further seven years supply.

The estate is currently engaged in developing its Stage 3C building and earthworks development infrastructure.

“We’re absolutely progressing as fast as we can and we appreciate the support of our other stakeholders,” said Donne.

“There were around 55 plots in 3C, and at the time of writing only three were still available for sale, some of which were quite large – the biggest being 1.2 ha,” said Donne.

“We are starting to see some bigger users.”

He said that although recent demand had included buyers coming into the region from the outside, an estimated three-quarters of demand was coming from local businesses wanting to expand.

“I think it’s very positive and I think we need to recognize and celebrate the fact that Tauranga is already home to a lot of great businesses.

“While it is great to see new capital and jobs coming into the region, employment growth and opportunity will also come from growing and nurturing what we already have in place.”

Strong regional industrial sectors

Priority One Business Promotion Manager Mark Irving said the strong sales momentum at Tauriko was further underpinning the existing solid regional industrial and commercial sectors.

“It’s sending a clear message to businesses within and outside the region that Tauranga and the Western Bay are becoming an increasingly desirable place to do business,” he said.

“Synonymous with business growth is an increase in staff and an enrichment of education and training, which in turn further stimulates and strengthens the regional economy.”

Strong industrial growth as witnessed at Tauriko, when also aligned to the region’s strengths of horticulture, logistics, construction and advanced engineering, provided a secure platform to also support solid growth across the residential, commercial and retail sectors, said Irving.

He confirmed that the data showed a notable increase over the past 12 months in the number of local companies expanding their operations and facilities.

“These companies are predominately relocating to Tauriko Business Estate from other industrial and commercial areas throughout the region, and see the opportunity to acquire larger sites within a growing estate as beneficial to their business growth.”

Land prices being offered at Tauriko were still lower than those offered in Auckland and were a significant factor in attracting and retaining businesses that were either expanding within the region or relocating from outside.

Those new entrants to Tauriko from outside the region are spread across a wide range of industry sectors and are adding strength and diversity to our growing region on a daily basis.

“As fast as Tauriko Business Estate is delivering property titles there is still a growing demand for more industrial land and the future looks bright for the Western Bay from all angles.”

Colliers International industrial and retail broker Rachel Emerson said demand had been very strong for both land and completed investment stock. She concurred that much of the demand was coming from local businesses.

“To me that’s the real success story of Tauriko,” she said.

“People perceive Tauriko as representing growth from out of town.

“But the reality is we should be celebrating our internal growth, because that’s what it is.

“Really it’s our local businesses growing and expanding, and looking for more space. And we’re seeing smaller businesses are coming in behind, taking up their buildings and growing into them.”

She attributed much of the estate’s success to excellent building covenants, which ensured quality buildings.

“Investors identify with the advantages of having new, high quality buildings.”

David Porter
David Porter
Editor, Bay of Plenty Business News. Email: editor@bopbusinessnews.co.nz

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