Lakefront investment worth crossing the road for

A prime lakefront commercial asset in the heart of Taupō’s town centre has come to the market for the first time in 25 years, giving investors an unparalleled opportunity to secure a high-profile standalone property supported by a long-established multinational tenant and significant underlying land value.

Located at 16 Roberts Street, the regular-shaped 1,123sqm (more or less) freehold site occupies one of the most tightly held lakefront positions in Taupō, where very few properties combine waterfront outlook with town centre zoning.

The circa-256sqm single-level building has been occupied by Restaurant Brands Properties Limited, trading as KFC, since 2001. The restaurant operates as a dine-in venue supported by a drive-through lane, and the tenant upgraded all external signage in July 2025 alongside an internal refresh that lifted the presentation signalling their continued commitment to the site. The building has a 100 percent A-plus seismic rating through an Initial Evaluation Procedure assessment, reinforcing its quality and resilience, and there are nine on-site car parks plus on-street parking to the front.

Restaurant Brands has committed to a new six-year lease term commencing 1 April 2026, providing net annual income of $161,000 plus GST and outgoings. The lease includes three further six-year rights of renewal, extending the potential term through to a final expiry of 31 March 2050. Rent reviews are scheduled for 1 April 2028 and every three years thereafter, giving investors a structured pathway for income growth over the long term.

The property’s position directly opposite the Roberts Street Lakefront Reserve and Te Atea public space provides strong locational advantages, including steady pedestrian flow, high visibility, proximity to established hospitality operators and close access to the town’s main retail area. The lakefront outlook cannot be built out, underscoring the long-term value of the site.

The asset will be auctioned on Wednesday 9 September, unless sold prior, and is being sold through Gary Harwood and Lisa Christensen of Bayleys Taupō.

While the site’s position and lake views are undeniably a drawcard, the strength of the tenant covenant is central to the investment appeal in the medium term, says Harwood.

“KFC has been part of the Roberts Street lakefront for 25 years and remains one of the most recognisable occupiers in the Taupō streetscape.

“The well-structured lease gives investors’ confidence in the income profile and reflects the tenant’s commitment to the location.” 

Harwood says the property’s future potential is equally compelling.

“The generous site is underutilised in its current configuration given the drive-through capacity. Town Centre zoning allows for significant redevelopment options over time, giving buyers the ability to unlock additional value as Taupō continues to grow.”

Taupō’s growth trajectory is strengthening investor confidence, supported by new residential subdivisions selling down and industrial development progressing along Crown Road and Rakaunui Road. The town’s expanding population and commercial base are reinforcing demand for well-located assets with strong fundamentals.

The property is owned by private Christchurch-based investors and is expected to appeal to buyers with connections to Taupō or those seeking a high visibility drive-by asset in a proven, premier waterfront setting.

Harwood says the combination of location, tenant covenant, and future potential is seldom available in Taupō, with waterfront assets remaining aspirational in the town.

“This property provides secure passive income, the reliability of a long-term recognised tenant, and a landholding with strong underlying value.”