Investment opportunity in Matakana – quality current tenant plus ready to go development

Fletcher Concrete and Infrastructure Ltd and a well-established garden landscaping business are the two long-term tenants on a piece of land on the market for sale and adjacent to a township utilised by thousands of Aucklanders as their ‘weekend getaway’.

The two current leases provide a healthy passive income with a remaining 40percent of the property available for immediate development or further tenancy.

The 3.078 hectare block of land is zoned “Residential M” and is positioned on the edge of Matakana Village, just under an hour north of Auckland.

Matakana is the local service township for the nearby coastal enclave of Omaha Beach and neighbours several popular tourist/vacation locations such as Goat Island Marine Reserve, Warkworth Riverside Town, Pakiri Ocean Beach and Sandspit which has just received consent for a 110 berth marina.

The land is currently leased to two separate companies. Fletcher Concrete and Infrastructure Ltd has a 12-year lease from 2011 with a right of renewal for a further six years. The lease generates $48,000 per annum.

The second tenant on the land is Tumbleweed Coastal Plants Ltd which has a three year lease from 2011 with two further three-year rights of renewal. The lease generates $40,200 per annum.

Tumbleweed has been operating on its current site in Matakana since 2002, and incorporates a full landscape supply depot, including landscape design and installation services. Tumbleweed’s plant displays enable visitors to wander informally among meandering pathways and enjoy garden sculpture displays and water features.

The property is being sold by through a tender process being managed by Bayleys Warkworth. Tenders close on May 2 2012.  Bayleys Warkworth salesperson Peter Marsh said the predominantly flat site is in a rectangular shape – with 145.4 metres of road frontage.

“The land is zoned for medium density housing, however the present use, supported by appropriate consents, means there are existing use consents in place,” Mr Marsh said.

Mr Marsh said any new owner of the site could therefore either retain it in its current usage format, or look at the opportunity of creating a residential subdivision, either in stages starting with the presently untenanted portion or as a single development in the longer term. Matakana currently has some 106 residential properties within its boundaries.

“Matakana as a settlement is fairly compact, and is effectively boundaried on one side by a river. Large scale residential development opportunities are limited by council zoning regulations – so sites of this size, topography, and proximity to town, are somewhat of a rarity,” he said.

“The minimum area of subdivision is 600 square metres if serviced by a reticulated sewerage scheme, or 1500 square metres if not serviced by a reticulated sewerage scheme.

“With two long-term, and highly complimentary, tenancies in place, this really is a land-banking investment.”