391 Te Rapa Road, Te Rapa
The land and building which previously housed the New Zealand Racing Board’s Waikato operations - and which are now
occupied by a handful of individual commercial tenants - have been placed on the market for sale.
The three-storey freehold premises at 391 Te Rapa Road on the northern outskirts of Hamilton is 797-square metre
building on 1542 square metres of land – incorporating a workshop space with roller door access on the basement level,
with storage and office space on the upper levels.391 Te Rapa Road, Te Rapa
Until three years ago, the New Zealand Racing Board (NZRB) - which runs the TAB betting agency and TAB Trackside TV and
radio channels – utilised the premises as the base for its Waikato and Bay of Plenty operations including race-day and on-site filming for Trackside, on-course betting and
supporting the local TAB retail network.
On moving out, the property was subsequently tenanted with a broad mix of commercial entities. Combined, the five
businesses now occupying separate premises within 391 Te Rapa Road generate $76,348 of rental income per annum. Among
the tenancy schedule are:Supermarket operator Wellmart Retail Limited which utilises the property for goods storage, on a current lease running
through until 2022 with two further two-year rights of renewalMaster Wen Chinese Restaurant run by Advocating Food International Ltd on a lease running through until 2024, with nine
further three-year rights of renewalGulatil and Gill Distributors Ltd on a lease running through to 2023 with three further three-year rights of renewalThe offices of POS Ltd on a lease running through to 2023, with three further three-year rights of renewal
andResidential letting services firm Gralin Property Management on a lease running through to 2021, with three further
two-year rights of renewal.
Scheduled rental reviews for all the tenancies are linked to the consumer price index plus varying additional
incremental increases of between two and five percent.
The generally rectangular-shaped block of land and building at 391 Te Rapa Road are now being marketed for sale by
tender through Bayleys Hamilton, with tenders closing on December 17 unless sold prior. Salesperson Alex ten Hove said
the building was constructed of solid low-maintenance materials and came with some 20 car parks on a fully sealed yard.
“From an investment perspective, the property benefits from having a broad diversification of tenants across multiple
business sectors. And with multiple office spaces, the premises opens up the opportunity for an owner/occupier to
purchase the site with a view to relocating at some stage in the future,” ten Hove said.
Constructed in 1989 and partly refurbished earlier this year, the building has a new build standards rating of 65
percent. The upper floor of the property is accessed via an internal stairwell located in the entrance lobby to the
office tenancies. There are roller door entry points on both the basement and ground floor levels of the building.
Encompassing two titles, the property has a combined Hamilton City Council ratable valuation of $1.85 million. The
address is zoned for industrial use under Hamilton City Council’s city plan – with Te Rapa Road being Hamilton’s main
northbound arterial route.
Te Rapa’s tenancy mix contains a number of ‘big box’ DIY and building trade operators such as Bunnings and Mega Mitre
10, along with vehicle dealerships, furniture showrooms, and commercial services companies. Te Rapa also houses the
sprawling retail shopping hub known as The Base.
“Hamilton’s Te Rapa corridor is contained within a council zoning which recognises existing office and retail activities
which have been established under previous planning regimes. The council’s industrial zoning for this property provides
for the continuation of existing office and retail activities while also opening the opportunity of developing the
location into a more industrial use,” ten Hove said.
“The establishment of any new or additional retail or office activities tenancies is not envisaged in the Te Rapa area.
So the future of 391 Te Rapa Road allows a development-focused buyer to take either the property in either a commercial
or industrial route, taking advantage of the existing use format.
“Hamilton Council’s industrial zone provisions seek to ensure that city’s industrial land is not occupied by land
activities that are non-industrial - unless those activities are either ancillary to industrial activity, support
industrial activities, or are more appropriately located within an industrial environment than a business centre.”