Caltex petrol sites for sale and leaseback

6:00 PM Wednesday November 28, 2018 Paul Charman

The petrol station at 300 High St, Rangiora. Photo / Supplied

Two large petrol stations, both owned by NZX-listed Z Energy 2015 Ltd, a subsidiary of the parent listed company, are for sale in Christchurch and Rangiora.

The properties are being marketed by Colliers International’s Christchurch general manager Mark Macauley and his colleagues Will Franks and Noel Gilchrist.

The stationsat 2 Russley Rd, Christchurch and 300 High St, Rangiorawill be auctioned at 10am on December 13, unless sold earlier.

Macauley says Z acquired Chevron NZ in 2016, including the fuel supply of the Caltex-branded service stations throughout the country.

They are two of the last remaining operational sites — trading as Caltex — to align with a leaseback or fuel supply structure.

Under the proposed sale and leaseback, Franks says Z would take a two-year-lease on both properties from February 2019, with three rights of renewal of five years each.

The leases are set to provide for annual fixed growth of 2 per cent per annum, with market reviews at the expiry of the initial lease term.

“Retail service stations are always sought and we expect similar demand for these new format sites,” he says.

“These established retail service stations are two of the final company-owned sites under the Caltex brand to be sold and offer the market long-term leaseback arrangements.”

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The petrol station at 2 Russley Rd, Christchurch. Photo / Supplied

Earlier this year, Colliers sold a Nelson service station for $2,035,000, representing a yield of circa 5.8 per cent.

Macauley says the two freehold stations, which can be bought together or individually, provide all the key investment fundamentals.

“Both Christchurch stations are in established suburbs and on high-profile corner sites. Each has a high traffic flow and is surrounded by excellent amenities and residential catchments.”

The 1987sq m Rangiora site is on the corner of High and King Sts. Its proposed annual net rent is $190,035 plus GST and outgoings.

The Russley Rd service station has a land area of about 4249sq m. Its proposed annual net rent is $310,490 plus GST and outgoings.