The high-profile corner site housing three leading motoring brands on one of Taupo’s busiest arterial roads has gone up for sale.
The more than 1,600-square-metre freehold property on Rifle Range Road is home to a Budget car rental outlet, an AA Auto Centre and a Gull fuel station. Its location near the town centre positions the businesses well to serve both locals and visitors in the central North Island tourism hotspot.
The master lease for the whole property is held by longstanding tenant DKM Holdings, which runs the Budget rental car and AA workshop businesses from the rear of the site. It subleases the front forecourt portion to Gull New Zealand as a self-service fuel station, and an area containing a cell phone tower to ATG Limited.
The current lease runs through to 2025 with three further three-year rights of renewal. The lease generates an annual net rental return of $98,500 plus outgoings and GST, with built-in market rent reviews at each renewal.
Established in Los Angeles in 1958, Budget is one of the world’s best-known car rental brands with around 3,500 locations in 120 countries. Its New Zealand network extends across more than 40 locations.
Taupo’s AA Auto Centre is one of 38 run by the AA across the country offering vehicle servicing, Warrant of Fitness inspections and repairs.
Gull New Zealand is the country's third largest fuel retailer, with over 110 sites nationwide.
The freehold land and buildings at 108 Rifle Range Road, Taupo, are being marketed for sale by Gary Harwood and Lisa Christensen of Bayleys Taupo.
The property will go under the hammer at an auction on Wednesday 9 August, unless it is sold prior.
Harwood said the approximately 1,654-square-metre site contained structures with a total area of over 560 square metres.
“The Budget and AA Auto Centre premises at the rear of the property include over 200 square metres of office/showroom space, plus an approximately 230-square-metre four-bay workshop and yard area. These are complemented with some 23 square metres of mezzanine storage.
“The front forecourt portion housing the fuel station receives cover from a more than 93-square-metre canopy.
“DKM Holdings owns the underground fuel tanks and Gull New Zealand owns all piping and pump infrastructure from the underground tanks to the refuelling stations,” said Harwood.
Christensen said the original part of the property had a detailed seismic assessment rating of 70 percent of new building standard, with newer additions rated at 100 percent of new building standard on an initial seismic assessment.
“The tenant businesses, all household names in their own right, enjoy excellent visibility and profile to busy traffic around the midpoint of Rifle Range Road, a main arterial route linking Taupo’s northern fringe to the lakefront and central business district.
“Situated a little over a kilometre east of the town centre, the site is well served with convenient dual access from Rifle Range Road and Pihanga Street and contains extensive on-site parking.
“Zoned ‘Residential Environment’ by Taupo District Council, the property is strategically positioned in the heart of a large residential catchment. It sits beside a Four Square supermarket and close to a variety of other locally run businesses,” Christensen said.