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Top-notch tenants a prominent feature of busy service centre in Waikato

Topnotch tenants a prominent feature of busy service centre in Waikato

A sprawling high-volume site with internationally renowned tenants next to the busy Waikato Expressway serves as a highly attractive opportunity for buyers searching for an investment with vast growth potential.

The Taupiri Service Centre, located at 2189 Gordonton Road, is a large freehold site spanning 4.0988ha, which enjoys huge profile, given its proximity to State Highway 1.

Less than 20 minutes to Hamilton suburb Te Rapa, or 60 minutes to the Auckland Airport, the property is situated on the western side of the Gordonton Interchange as part of the Waikato Expressway, ensuring high traffic numbers.

International brands McDonald’s, Taco Bell, and Subway are among the tenants, while BP, including a Wild Bean Cafe, and Robert Harris are also onsite providing a total net estimated rent of $801,335 plus GST per annum.

Colliers has been exclusively appointed to market the property for sale by deadline private treaty, which closes at 4pm on Wednesday 1 September, unless sold prior.

The site comprises a block of originally rurally zoned land that was consented for a service centre via a private plan change process.

Access is via a stub road forming part of the roundabout intersection of State Highway 1 and Gordonton Road (State Highway 1B).

Anchored by a large ground leased BP service station at the southern end, the northern frontage houses a ground leased McDonald’s restaurant.

The BP site occupies 1.3ha, while McDonald’s spans 3,304sq m and both have long-term leases providing security and safety for buyers and these leases make up more than 40 per cent of the overall net annual rental income.

Taco Bell, who serve more than 2 million customers at more than 7,000 restaurants worldwide, are operated by the NZSX-listed Restaurant Brands and lease a 250sq m building.

The lease began in January 2021 and will run for 10 years with two further rights of renewal for five years each. Taco Bell has a prominent frontage on the site as a standalone tenant.

Robert Harris, a staple of the New Zealand café scene, leases a 200sq m premises and they began their lease in November 2020 for a term of six years with two rights of renewal for six years each.

Subway leases a 78sq m property and their 10-year lease began in December 2020 and provides two rights of renewal for six years each.

The Kebab Shop leases a 78sq m premises and they have a six-year lease that began in January 2021 with one six-year right of renewal.

There also agreements in place for a restaurant and bar, and liquor store for the retail strip.

The site has ample parking and its accessibility from such a busy thoroughfare only adds to the appeal.

Alan Pracy, Sales and Leasing Director at Colliers Hamilton, says opportunities with this many blue-chip tenants in one location rarely come to the market.

“This is an incredibly compelling site that will offer the new owner security for a number of years. This location benefits from being situated adjacent to the Waikato Expressway, which is a vital piece of infrastructure for the ‘Golden Triangle’ centres of Auckland, Hamilton and Tauranga,” Pracy says.

“All tenants are locked into long-term leases with favourable lease terms, making this a must-see site for buyers of all kinds. We anticipate huge demand this property and would encourage interested parties to get in touch quickly to complete their due diligence to avoid disappointment.”


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Alan Pracy

Director

Hamilton (Agency & Property Management)

Prior to his move to Colliers International, Alan spent 10 years as a broker with Knight Frank and DTZ, culminating in his position as Commercial Manager at DTZ Hamilton. Alan has been involved in retail acquisition and leasing for Briscoes Group, Supercheap Autos, Foodstuffs, No. 1 Shoes, McDonalds, Fonterra, Big Save Furniture, Bunnings and Mitre 10. Much of Alan’s focus has been around both strategic properties and clients. This has encompassed long term development projects, sourcing the land and obtaining anchor tenant commitments. Alan has also worked closely with a number of institutions and high wealth individuals to effectively and confidentially place or acquire significant property assets.

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