Caltex Ashburton station is a solid earner
The service station stands at the corner of East and Dobson Sts, Ashburton. Photo / Supplied
Caltex Ashburton, a Canterbury business with annual sales of $9.2 million last year, is on the market, with an asking price of $2m and the option to purchase the freehold land and buildings.
The business, at the corner of East and Dobson Streets, is being sold by ABC business sales brokers James Sheppard and Alex Ingrosso.
The service station operates from 6am till 11pm, seven days-a-week and is on its own freehold site, says Sheppard.
“The land and buildings are also available for purchase, so lease terms will either be set for the new owner, or if only the business is sold, then a new lease will be put in place at an increased rate of $181,000 per annum, plus operating expenses and GST.”
He says the value of stock is estimated at between $100,000 and $150,000.
Sheppard sees the offering as a great opportunity for someone looking for a business that is part of a national brand.
It is one likely to provide high returns in future due to being located in a part of the country which is now fast growing.
“At the asking price of $2m, the normalised return of $366,558 is a solid 18.3 per cent return on investment,” he points out.
“Considering the current minimal owner input of 20 hours a week, it’s a great return for the time spent.”
Ingrosso says the business sells the usual range of fuels plus LPG and its car wash achieved sales of $91,000 last year.
“The new owner will be taking over a relatively relaxed role, just managing accounts and supply of product, so this would be conducive to a satisfying lifestyle.
“This operation has been the pride and joy of its current owner for many years, and they’ve built it up from a smaller station to the large outfit it is today.”
Ingrosso notes that the return for 2016 was even higher even than last years.
“In the 2017 financial year the business suffered slightly due to road works right outside the premises. This interrupted the traffic flow, which the vendor says caused a reduction of income of about $60,000.”
Caltex has been fuelling motorists and businesses in New Zealand since 1936, the brand now being operated by Z Energy under licence to Chevron International.
“Today there are more than 140 locally operated Caltex service stations and 70 truck stops around New Zealand,” says Ingrosso.