A prominently positioned commercial building with a national-brand tenant in Tūrangi is being offered to the market for sale giving buyers the opportunity to acquire a highly visible asset with a steady rental stream.
Sitting at 2 The Town Centre, the property has approximately 497sq m of floor space on a 500sq m landholding.
The building is leased to Tiki Holdings Tūrangi Limited, trading as Hammer Hardware, a nationally renowned brand with over 40 stores throughout New Zealand. Hammer Hardware is the long-term tenant of the property, having occupied it for decades.
The tenant recently entered a new three-year lease with two further rights of renewal for three years each leading to a final expiry in 2034. The net annual rental income from the property is $67,000 plus GST.
Start your property search
Sitting about 300m from State Highway 1, the property benefits from its convenient location in the centre of the Tūrangi public car park. Nearby neighbours include New World, a healthcare centre, pharmacy, and a Z Energy service station.
Situated 50km south-west of Taupō, Tūrangi acts as the primary commercial and service hub for the southern Lake Taupō region.
Colliers Taupō brokers Hugh Milloy and Michael Jones have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Thursday 23 April, unless sold prior.
Milloy, Investment Sales Broker at Colliers Taupō, says this highly functional retail asset has served the existing tenants incredibly well as evidenced by the length of their tenure.
"The property gives buyers the chance to purchase an asset at an accessible entry point, with lower overheads for tenants compared to the Taupō CBD," Milloy says.
"The current tenant has been in place for many years and is firmly established in this location. The lease agreement is underpinned by shareholder guarantees, adding to the strength of the tenant covenant.
"There is also built-in rental growth with annual CPI adjustments for the duration of the lease, providing investors with future income increases."
Tūrangi has a permanent population of approximately 4,000 residents, supplemented heavily by a highly transient tourist market drawn to the area's trout fishing, Mount Ruapehu ski fields, and Tongariro National Park.
The town's local economy is largely driven by tourism, outdoor recreation, and services that support visitors to the region. Tūrangi also benefits from nearby forestry operations, hydroelectric power generation along the Tongariro River scheme, and supporting retail and hospitality businesses.
Sitting on State Highway 1, the key transport corridor linking Auckland, Hamilton, Taupō, and Wellington, Tūrangi is a regular stopping point for travellers.
Jones, Investment Sales Broker at Colliers Taupō, says Tūrangi is recognised as a premier outdoor recreation destination that is renowned internationally for its trout fishing.
"The nearby Tongariro Alpine Crossing attracts thousands of walkers every year, while Lake Taupō provides opportunities for boating, kayaking, and fishing. The surrounding national parks offer extensive hiking, mountain biking, and winter sports opportunities," Jones says.
"There's also a collection of popular holiday hotspots near Tūrangi that are well populated over the summer months and drive seasonal commercial activity in the town."
- Supplied by Colliers
