An industrial property spread across multiple freehold titles in Taupō is being presented to the market for sale and offers buyers the opportunity to secure an asset with a steady rental stream and long-term upside.
Located at 26, 40, and 42 Matai Street in Taupō’s premium industrial precinct of Tauhara, the property has 8,354sq m of total land area. There is approximately 1,274sq m of total floor area spread across a 372sq m building at No 40 and a 902sq m building at No 42. No 26 is a vacant site spanning 1,943sq m.
The land and buildings are leased to three tenants, Tranzit Group, Vehicle Testing New Zealand (VTNZ), and Taupo Heavy Diesel. The total net annual rental income is $223,700 plus GST and outgoings.
All three occupants have long-term leases in place if their rights of renewal are taken up. Market rent reviews are in place for each agreement, providing the new owner with future rental income growth.
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Surrounded by industrial firms large and small, the subject location is only a few minutes’ drive from the motorway interchange and about five minutes from Taupō CBD.
The property is zoned Industrial Environment by the Taupō District Council. This designation permits 75 per cent building coverage and a 12m height limit, allowing significant scope for future development at the property, which will be appealing for buyers with a long-term view.
Hugh Milloy, Investment Sales Broker at Colliers Taupō, has been exclusively appointed to market the property for sale via negotiation.
Of the current tenants, Tranzit Group is New Zealand’s largest family-owned transport and tourism company operating throughout New Zealand. For almost 100 years, it has held the reputation of being a pioneer and innovator in the bus and coach industry.
Their current lease runs until April 2026 and there are two three-year rights of renewal in place leading to a final expiry of March 2032.
VTNZ is a Wellington-based company that carries out government-mandated Warrant of Fitness and other inspections of motor vehicles. It is the largest vehicle inspection company in New Zealand. Their six-year lease term runs until October 2026 and there are multiple renewals available creating a final expiry of October 2035.
Taupō Heavy Diesel specialises in the servicing and repair of diesel engines and heavy trailers. The business provides a 24/7 service offering.
Their five-year lease runs until December 2028 with two five-year renewals in place leading to a final expiry of December 2038. As well as market rent reviews, their agreement includes annual CPI increases capped at 4 per cent.
Milloy says savvy investors will recognise the potential on offer from this property given its scale.
“The total site area gives enormous scope for future development, but in the short term, due to the structure of the three leases, this is not an option for prospective purchasers, unless one or more of the existing tenants requires additional building accommodation,” Milloy says.
“Investors will have the opportunity to secure a property with rental income that is underpinned by a strong tenant covenant through well-established operators.
“Based on the property’s strategic location in Taupō’s most sought-after industrial hub there is considerable long-term value to be realised through the repositioning or the development of the site and I encourage all interested parties to contact me to discuss their options.”
- Supplied by Colliers
