Near-new, tried and true

Near-new, tried and true

116 Claret Ash Drive, Tauhara, Taupo

The Property
- 316sqm near-new two level building on an 878sqm Taupo industrial environment-zoned site in Ashwood Business Park
- Includes reception area, office and meeting room, administration area, full kitchen, bathroom and workshop on the ground floor, with another administration area, office and meeting room on the first level
- Great profile to the road and onsite parking
- Fully-leased to one well-established tenant with a new five year lease and net rental $45,000 pa + GST
- CV: $465,000

Quick Look
- National Total Property marketing campaign with tender sale method
- Strong enquiry levels from local and out-of-town investors
- Early offer received was at an acceptable level to the vendors, so the tender date was brought forward by two weeks giving all interested parties the opportunity to partake
- Five tenders received by revised tender close date
- SOLD for $840,000 at a 5.36% yield
- Purchased by Auckland-based investor

The Story

This Taupo property was exactly what the market was looking for and agents say if they could clone it five-times-over, they’d be able to sell every single one!

Gary Harwood and Lisa Christensen of Bayleys Taupo knew that these recently built commercial buildings on one site within a successful business park would resonate with investors seeking an as-new, well-located property with a solid lease locked in.

“The market is crying out for this sort of stock, so it really came as no surprise to find that it attracted significant investor interest – even with a condensed sales timeframe,” says Gary.

“One of the first people to see the property made an offer that was acceptable to the vendors and so we immediately brought the tender close date forward.

“To receive five sound tenders by that revised date was impressive for the Taupo market and we were delighted to get a strong result for our clients.”

Describing the property as “pretty cool”, Gary says the new owner – an investor from Auckland – liked the fact that it was located within an industrial business park, as industrial property is his preference.

“The fact that it was basically new and had a committed tenant with a fresh long-term lease in place sealed the deal.

“The bonus is that the property is generic and flexible enough to appeal to a wide range of prospective tenants over time, which future-proofs the asset.”

Vendor Comment

Co-owner and co-director of Landmark Homes Taupo, Whakatane and Rotorua, Gerry Schumacher, says the building is a great base for Landmark’s successful business and the sale will allow them to grow their footprint further in the lakeside town ….

Gerry and his business partner Steven Painter, had this impressive commercial premises built in 2018 and say the location in the recently-established Ashwood Business Park is ideal for their operation’s headquarters.

“There’s plenty of parking and we have a generous workshop – there’s even views of the mountains from my office upstairs,” says Gerry.

“However, we are in the business of residential property and specialise in medium to high-value builds – and that’s our core business, rather than being active investors in the commercial property sector.

“The sale of the property will free up useful capital and allow us to buy more sections for our new homes.”

Gerry says he found the service and support from Gary and Lisa of Bayleys Taupo to be excellent and appreciated the way they led him and Steven through the tender process – particularly as an early offer changed the timeline.

“They did well getting so much initial interest in the property and were very professional in the way they went about facilitating the deal.

“We’d happily recommend their services.”

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