Right in the heart of Tauranga’s central business district sits the 143 Durham Street property, owned by one of PMG’s investment entities for well over 20 years. In fact, it proudly retains the title of PMG’s first ever property.
Developed as a three-level commercial complex in the 1980s, 143 Durham Street has remained a key, quality fixture on one of Tauranga CBD’s main arteries.
In 2019, following a growing shortage of quality office space in Tauranga, PMG proactively embarked on an office upgrade of the long-standing property to retain and attract high-quality tenants. Spanning 983sqm with seven tenancies over three levels, including PMG’s Tauranga head office, the rolling fit-out project also kicked off at the same time as Tauranga City Council’s street beautification project.
The two-year upgrade was planned to improve the property’s productivity for investors while supporting the development of premium office space in the CBD to attract quality tenants and achieve longer lease terms and full rental income. It also meant PMG could support the regeneration of the CBD.
Through the project, PMG was able to implement several new innovations to help create a professional and modern workplace. The entire fit-out at each tenancy was was made in conjunction with our tenants to meet their requirements. We installed modern, efficient air conditioning to create a comfortable work environment regardless of how spaces were used, providing flexibility and efficiency for tenants. We also significantly improved the fire rating between tenancies and common areas and replaced all lighting to energy-efficient LED lights.
The project also allowed us to implement environmentally friendly rubbish and recycling services for tenants including worm farms. This has been hugely popular and well-received by tenants. Together, our initiatives also recently led to the PMG head office tenancy gaining a 4-star NABERSNZ rating. 143 Durham Street is now a modern, highly functional and quality office property with all seven tenancies leased. At the conclusion of the project in early 2021, the valuation of the property increased from $6.9m (March 2019) to $11.5m (March 2022).
PMG CEO Scott McKenzie says investors can be assured the property is continuing to contribute to their reliable returns.
“Now the project is finished, 143 Durham Street complements the quality look and feel of neighbouring properties, including the newly built Waikato University building. The property is a modern, professional and highly functional space that tenants tell us is a pleasure to work in and represents their businesses well,” says Scott.
“Our goal was not only to make sure our tenants were satisfied in their modernised spaces, but that our investors were able to gain value and greater income resilience from their investment through the upgrade of the property.
“This has been achieved and the building now attracts higher rental income and attracts quality and happy tenants.
“From a Tauranga CBD perspective, 143 Durham Street is now a high-quality office space that provides a modern, professional and effective space which has retained important businesses in the CBD for its regeneration.”
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