A highly functional industrial property in Taupō is available for purchase and will pique the interest of buyers looking to acquire a strategically located asset with a steady rental stream.
1/37 Manuka Street is located in Taupō’s central industrial area of Tauhara and has a building that has 905sq m of floor area on a freehold site that spans approximately 6,334sq m. The property is zoned Taupō Industrial Environment.
The property is tenanted by Hog Haulage who began their current five-year lease term on 1 January 2022. Their agreement includes two rights of renewal of five years each leading to a final expiry of 31 December 2036.
The lease agreement provides $152,700 plus GST of net rental income per annum. There are CPI plus 2 per cent rent reviews scheduled annually on 1 January with market reviews set for each renewal.
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International logistics firm Team Global Express subleases part of the building at the property, indicating its capacity as a logistics centre.
Tauhara is one of Taupō’s original industrial subdivisions and offers convenient access to State Highways 1 and 5, which are only a few minutes away. The subject property is 4km from Taupō’s CBD meaning a range of amenities are readily available.
Hugh Milloy, Investment Sales Broker at Colliers Taupō, has been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 7 November, unless sold prior.
Originally built in 1992, the multi-purpose building offers considerable, mostly concrete, yard space making it convenient for the current occupants and their business operations.
Milloy says the favourable lease terms make this an attractive purchasing opportunity for astute investors and, potentially, owner-occupiers.
“There is considerable future rental growth available for this property based on the rental agreement and a potential long-term commitment to the site from the current occupant or subtenant, if future rights of renewal are picked up,” Milloy says.
“Alternatively, if the property was to be vacated in the future, I am confident there would be considerable interest among prospective occupants given its strategic location and overall functionality.”
The area is very popular with small to medium-sized businesses and the immediate neighbourhood contains a good standard of industrial buildings.
The property backs onto the eastern boundary of the Digger McEwen Motocross Park, a popular local attraction that is part of Taupō’s lifestyle and adventure feel.
The area is home to a number of popular outdoor activities, while its world-famous trout fishing in Lake Taupō draws the attention of domestic and international guests.
Some of the world’s most beautiful unspoiled natural scenery is on show across Taupō and it consistently draws strong tourism numbers.
“This is a property that is not to be missed as it has the key investment fundamentals of an established tenant in a sought-after location and I encourage all interested parties to make contact with me to discuss their options,” Milloy says.
- Supplied by Colliers
