A bright investment opportunity has emerged in Northland, offering secure long-term income from an electricity sector asset amid a tight supply of critical infrastructure to service the growing region, Bayleys brokers say.
The property at 1254 Puketona Road is featured in Bayleys’ latest Total Property portfolio with a deadline, closing at 4:00 pm on Thursday, 22nd April (unless sold prior).
Bayleys in the North commercial general manager, Ben Clare, is marketing the 4ha (more or less) freehold site alongside colleagues Nigel Ingham and Gary Lucas.
Clare says that the modern 1,537sqm (more or less) facility, which includes a large warehouse with canopy cover and an associated office block, is leased to Top Energy – a key player in the region’s energy network.
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“Offering a long lease returning $260,000 net pa plus GST, with a remaining term of seven years and an option for a 15-year renewal (extending tenancy to 2046), this property presents an excellent opportunity to collect income from a stable investment in an area positioned for growth.
“Northland’s economy continues to improve, driving increased demand for essential services and critical infrastructure. With the government and private sector both focusing on attracting both domestic and foreign investment, now is an ideal time to secure a high-quality asset in the region.
“A solid lease to Top Energy – a reputable energy supplier - underpins the property’s appeal as a secure, low-risk investment, with a favourable structure which provides both stability and future growth potential via market rent reviews scheduled every two years.
“This offers investors the opportunity for consistent rental increases while maintaining a reliable income stream. Additionally, the net lease structure places responsibility for maintenance, repairs and outgoings with the tenant, minimising landlord liability,” Clare says.
The more than 4ha property is zoned Rural Production under the Far North District Plan, which includes a large, metalled yard, concrete forecourt and under-utilised green space at the northern boundary beside the Waitangi River.
Bayleys brokers Nigel Ingham and Gary Lucas say this categorisation is suitable for infrastructure and service operations, making it a key asset for future growth in the region.
“With substantial land area and rural zoning, the property offers future development scope, which could further increase its capital value as Northland attracts more significant development and investment interest,” they say.
The property is strategically positioned with prominent frontage to State Highway 11, just up from the Puketona intersection with State Highway 10.
The brokers say this offers excellent accessibility to populous areas, including Kerikeri, Kaikohe, Kawakawa, and Paihia, whilst benefitting from demand from year-round tourism in the Bay of Islands region.
“The high-profile location enhances the property’s value as an essential component of the region’s infrastructure network, ensuring its ongoing demand and relevance within the local economy.
“Northland’s economic trajectory is positive, and investors are waking up to the untapped potential of solid local opportunities, particularly within market segments relating to energy and key infrastructure, which feature upside development potential,” they say.
- Supplied by Bayleys
