A highly visible, multi-tenanted service centre in Taupo offers buyers the opportunity to acquire a prominent site with multiple income streams and a strong tenant covenant.
200 Napier Road, Hilltop in Taupo has a land area of 7068sq m and is home to four tenancies spread across two buildings with 1582sq m of total floor area on one freehold, Industrial zoned title.
Z Energy is the anchor tenant, complemented by food tenants Subway, Industrie French Kitchen, and French bakery Paris Delice.
The property is located near the busy intersection of State Highway 1 and State Highway 5, which caters for more than 7,000 traffic movements per day.
Start your property search
This low maintenance asset, which is only 4.4km from Taupo’s CBD, is extremely popular for locals and travellers alike and the occupants are signed to long-term leases providing security for buyers. The total net annual rental income from the property is $414,130 plus GST.
Colliers Taupo Brokers Daniel Moffitt and Hugh Milloy have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 16 March, unless sold prior.
The service station was built in 2013, which is when Z began a 20-year lease at the site that includes three further rights of renewal for five years each, leading to a final expiry of June 2048.
They lease 1175sq m of floor space and their tenancy agreement includes a range of market rent reviews, including annual CPI adjustments.
Industrie French Kitchen, who offer an all-day breakfast and lunch menu, lease Tenancy 1, which spans 175sq m and their lease began in 2018 and features one further right of renewal for three years in 2024.
Locally owned and operated Paris Delice leases Tenancy 2, covering 147sq m of floor space and they began a five-year term in November 2019 with two further rights of renewal for five years each.
The 85sq m Tenancy 3 is occupied by popular sandwich chain Subway and they have one further right of renewal for six years available in 2027, leading to a final expiry of November 2033.
Moffitt, Broker and Sales Manager at Colliers Taupo, says this property is a high-profile split-risk investment opportunity.
“Service stations are one of the most sought-after asset classes in the commercial market given the security on offer, which creates a steady rental stream for buyers,” Moffitt says.
“A majority of these tenants are signed to long-term lease agreements with favourable conditions, including regular rent reviews that will be highly appealing for prospective purchasers.
“While the site boasts four existing tenants, there is potential to add further value in the future by intensifying the usage of the site, which would allow the new owner to maximise the potential of this significant landholding.”
Milloy, Broker at Colliers Taupo, says this site is located in a high-growth area that continues to experience commercial investment.
“The Hilltop industrial area is a relatively new industrial park in Taupo and is now home to prominent businesses such as Mitre 10 Mega, Mainfreight, St John Ambulance, and the Stag Park transport hub.
“But there is more to come in this dynamic area and planning is in process for the construction of a new supermarket and bulk retailer on nearby sites in the future.
“We expect there will be strong interest in this offering, which shapes as one of the most enticing passive investment opportunities to be presented to the open market in Taupo recently.”
- Article supplied by Colliers
