With established tenants in place, a prime industrial site in Taupo offers prospective purchasers the opportunity to acquire a property with low site coverage and extensive development potential.
9-11 Mahoe Street, Tauhara, is home to two adjacent workshop buildings, a separate office building, and canopy space with a total net lettable area of approximately 996sq m on a 5,758sq m site that is zoned Taupo Industrial Environment under the District Plan.
ARC Engineering Taupo is the anchor tenant and subleases part of the property to Downer, while Spark NZ have a cell tower in one corner of the site that won’t impact any future construction. The combined annual rental income is $95,665 plus GST and outgoings per annum.
The property is strategically located between Taupo’s original industrial area and the recently developed Ashwood Park, which is home to a variety of high-quality industrial facilities.
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The site backs onto Crown Road, one of Taupo’s main access roads, and is only 4km from the CBD and two minutes from both State Highways 1 and 5.
Colliers brokers Daniel Moffitt and Hugh Milloy have been exclusively appointed to market the property for sale by deadline private treaty closing at 1pm on Thursday 28 July, unless sold prior.
The existing structures on the site include a 308sq m building at the front of the property, a 72sq m covered lean-to, a 204sq m rear building, 42sq m of mezzanine, 193sq m of covered bays, and a 177sq m administration and office building.
They are all leased by prominent local firm ARC Engineering Taupo and their lease returns $90,000 plus GST in net annual rental income. They began a near-two-year agreement in August 2021 and have one further right of renewal for two years with a rent review scheduled on the renewal date in July 2023.
The lease on the cell tower for Spark provides $5,665 plus GST in annual rental income. Their agreement has multiple renewals in place with CPI rent reviews on each renewal date and a final expiry of March 2046.
Moffitt, Senior Broker and Sales Manager at Colliers Taupo, says the property shapes as a highly desirable purchasing opportunity for a wide range of buyers.
“The incredibly low site coverage of this property provides vast potential to develop the site for future growth opportunities,” Moffitt says.
“The new owner will also have the security of an existing rental stream, which has in-built growth through CPI reviews from the cell tower, while the anchor tenant’s lease is due to be reviewed next year.
“Buyers may see potential in creating a development they can utilise as an owner-occupier, or they may choose to divide the site up and build smaller facilities to create an attractive offering for future tenants.”
Milloy, Investment Sales Broker at Colliers Taupo, says the location of this site makes it a compelling proposition for buyers.
“The site offers convenient access from the street and is nestled among a range of high-profile national brands, including PlaceMakers and bathroom and plumbing supplier Mico,” Milloy says.
“When examining all of the pertinent factors of this property such as having established tenants on a site with development potential, we expect there will be strong demand for this offering and encourage all interested parties to contact us immediately.”
- Article supplied by Colliers
