Strong income stream from Taupo tenancies

The Suncourt complex is for sale for the first time since it was built 30 years ago. Photo / Supplied

Suncourt Shopping Centre, one of Taupo's most significant CBD property holdings, strategically located on a 2997sq m site for over 30 years, is being marketed by Bayleys as "a trophy Taupo property".

The large retail and office property is being offered for sale through Gary Harwood of Bayleys Taupo by deadline private treaty closing June 9 unless sold prior to that date.

North-facing, the shopping complex in Tamamutu St, was developed by a group of Taupo businessmen who jointly constructed a complex they could operate their businesses from and open up to other retailers, service providers and office tenants.

Harwood says the original owners and developers now wish to pursue other interests and have put the entire property on the market for the first time.

"This is a sizeable chunk of commercially-zoned freehold land in the small, compact Taupo CBD and is positioned to capitalise on recent and future commercial developments in the town," he says. "An astute investor will recognise the intrinsic worth of such a prime commercial site with the security of a considerable income stream."

Harwood points out that Taupo is geographically constrained by the lake to the south, and the Waikato River to the north and west.

"There is not too much scope to extend the existing CBD grid so commercial property in the hub of the town tends to be held long-term - as evidenced by the history of this property."

The two-level property has a floor area of approximately 2490sq m with a good mix of retail, cafe and restaurant tenants on the ground floor and office space on the first floor.

"The complex has a strong leasing history and currently there is just 105sq m vacant on the ground floor and 41.45sq m unoccupied on the first floor," Harwood says.

"Taupo traditionally has very little in the way of vacant commercial space and what does become available is usually snapped up promptly. The complex is well-presented with raised planter boxes, paved areas, park bench-style seating and public toilet facilities."

To the eastern side of the shopping complex there is a service lane and a public carparking area for 14 vehicles. Another service lane and 22 private tenant carparks are to the rear of the complex.

Tenants are on varying lease terms and the gross rental return is currently around $430,000.

They include Telecom (Leading Edge), Taupo Florist, Suncourt Hair Company, Full of Beans Cafe, Mainly Silver jewellery and Thai Delight Restaurant.

"This is a good spread of tenants across the commercial and retail spectrum which makes an investor less vulnerable to market fluctuations," says Harwood.

Harwood says some of the upstairs office suites have recently been refurbished.