A strategically located retail property with a national brand occupant in one of Taupō’s busiest streets is being presented to the market for sale and offers buyers the opportunity to acquire a passive investment with a steady rental stream and strong tenant covenant.
35 Te Heuheu Street has 359sq m of net lettable floor area on a 500sq m site. The property is home to Life Pharmacy, part of the Unichem & Life Pharmacy network that operates in more than 350 communities across the country and is owned by the NZX-listed Green Cross Health Group, which is also a shareholder in the tenant.
Life Pharmacy recently began a new six-year lease at the property from 1 March that runs until 2029 with three further rights of renewal in place leading to a final expiry of February 2038.
Their rental agreement provides $135,000 plus GST per annum and there are market reviews scheduled for every three years offering built-in rental growth for the new owner. One hundred per cent of the outgoings are covered by the tenant.
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The property enjoys significant road exposure on the sunny side of Te Heuheu Street, and it sits between high-profile fashion retailers Hartleys and Gigi Belle, while surrounding stores include Replete Cafe, Paper Plus, Rip Curl, Sterling Sports, Little Trooper, and ASB Bank.
The property is zoned Taupō Town Centre – Pedestrian Precinct by the Taupō District Council and offers four car parks at the rear of the building.
Hugh Milloy, Investment Sales Broker at Colliers Taupō, has been exclusively appointed to market the property for sale via tender, which closes at 4pm on Thursday 8 June, unless sold prior.
Milloy says this compelling purchasing opportunity is underpinned by the property being leased to an established and well-known local business.
“Unichem & Life Pharmacy are the largest national pharmacy group in New Zealand and their brands have been caring for Kiwis and their families for generations with a strong focus on their local communities,” he says.
“They sell a wide range of health and beauty products from local and global brands and their pharmacy teams are committed and trained to deliver reliable advice for their customer’s needs.
“They are trusted operators in the healthcare sector and leaders in their field.”
The location of the property means it enjoys high foot traffic numbers and being near the Paper Plus, which is also home to Taupō’s NZ Post shop, means it has frequent visitors.
The area is well-served by local amenities with a range of hospitality and shopping spots in convenient walking distance, while Lake Taup?, Australasia’s largest freshwater lake, is only moments away.
The Taupō region is a lifestyle and adventure destination with a cosmopolitan feel. Approximately halfway between Auckland and Wellington, Lake Taupō is famous for its world-class trout fishing and is surrounded by some of the world’s most beautiful and unspoilt natural scenery.
Milloy says this property has all the key fundamentals of an outstanding passive investment, including an established tenant in a prime location with built-in rental growth.
“Commercial buildings in Taupō such as this one have traditionally been tightly held. This property has been owned by the same family for over 50 years and is on the market due to changes in the family’s circumstances.”
- Article supplied by Colliers
