Property Income Fund acquires landmark mass timber building in Tauranga

Property Income Fund (PI) has acquired 90 Devonport Road, New Zealand’s largest modern mass timber commercial office building, in a move that adds a high-performing, sustainable asset to the fund’s growing national portfolio.

Located in the heart of Tauranga’s city centre, the eight-level, 10,400-square-metre building was recently completed by Willis Bond and construction partner LT McGuinness. Delivered on time and within budget, the building sets a new benchmark for large-scale sustainable commercial development in Aotearoa.

The structure is a hybrid of steel and engineered timber - using locally sourced Laminated Veneer Lumber (LVL), Cross Laminated Timber (CLT), and Glulam - reducing its whole-of-life carbon footprint by more than 60% compared to traditional construction. It is fully leased to Tauranga City Council on a 15-year net lease, bringing the Council’s 1,000-strong administration team together under one roof for the first time since 2015.

Wayne Silver, Managing Director (Funds & Finance) at Willis Bond, said: “90 Devonport Road is an exceptional addition to Property Income Fund’s portfolio. It demonstrates the commercial viability of sustainable design and construction at scale. The building’s strong tenant covenant, long lease, and high environmental credentials align with our strategy of acquiring long-term, high-quality assets.”

The building has achieved a 6 Green Star design rating, the highest available, and is on track for a 5-star NABERSNZ energy rating and Gold WELL certification, supporting lower operational costs through energy and water efficiency.

PI was established by Willis Bond in 2020 to invest in long-term, income-generating property across New Zealand. 90 Devonport Road joins the fund’s portfolio of strategic acquisitions which include key industrial properties in Nelson and Timaru.