DOC-tenanted central city office block

The upcoming sale of a standout central Whanganui office building, occupied by the Department of Conservation on a long lease with built-in CPI rental growth, is being marketed as a blue-chip investment opportunity.

The smartly presented two-storey complex sits in a prime location on Taupo Quay, amid a lively cluster of business and civic occupiers in Whanganui’s main commercial precinct.

The site is fully leased to the high-profile Crown tenant on a current lease that runs through to 2035 with further rights of renewal, if fully exercised, extending the final expiry to 2044.

Of particular appeal for commercial property investors, the lease to DOC locks in future growth in the Crown-backed income via structured CPI-linked rental increases every three years (subject to caps).

As the government agency charged with conserving natural and historic heritage, DOC manages public lands spanning a third of New Zealand – including a world-renowned network of Great Walks, national parks and some of the country’s most famous visitor attractions. The department consistently ranks among the nation’s most attractive employers.

DOC’s Whanganui office oversees a large expanse in the central-western North Island, including Whanganui National Park and the famous Whanganui Journey canoe trip.

The freehold land and buildings occupied by DOC at 34-36 Taupo Quay are being marketed for sale by John Bartley and Amie Rowan of Bayleys Whanganui.

The property will be sold by way of a tender closing on Wednesday 22 April (will not be sold prior).

The approximately 1,510-square-metre office block is underpinned by more than 1,000 square metres of commercial-zoned central city land.

Bartley said the long lease tenure, secure blue-chip government tenant, built-in CPI rental growth mechanisms, and prime location, made the property a coveted addition to a commercial investment portfolio.

“Positioned proudly on Taupo Quay, this standout property securely leased to one of the most recognised government departments, offers rare trophy investment appeal.

“With Crown-backed rental income from a reliable long-term government tenant, and prime exposure in the buzzing arts and commerce zone, it delivers confidence and quality in one.

“Locked-in CPI rent reviews provide investors with guaranteed rental growth over time, while market reviews allow ongoing alignment with prevailing conditions,” Bartley said.

Strengthened, designed and fitted out for DOC’s requirements in 2010-11, the property is well aligned with the tenant’s long-term operational needs – adding further to its passive investment credentials.

Rowan said the building offered profile, scale and functional offices within a well-recognised location, plus the benefit of being surrounded by complementary commercial activities and amenities.

“Excellent visibility and exposure to vehicle and pedestrian traffic is assured by some 25 metres of frontage to Taupo Quay, a major thoroughfare around the eastern CBD close to the Whanganui River.

“As the economic heart of the city and wider region, central Whanganui pulls in residents and visitors with its dynamic blend of shopping, dining and business services.

“The Taupo Quay property sits amid a vibrant hub of office buildings, retail spaces and mixed-use developments. Amenity abounds for those who work here, with the city’s Victoria Avenue commercial spine less than two minutes away by foot and the Trafalgar Square shopping centre within a four-minute walk.

“Office occupiers here are assured of a handy commute, with Taupo Quay easily reached from all parts of the city by car or local bus services,” Rowan said.