Five service stations on long-term leases

2:47 PM Friday November 17, 2017 True Commercial

Caltex Dairy Flat. Photo / Supplied

A portfolio of five service stations in strategic, high-growth North Island locations is on the market through Colliers International.

The properties in Paihia, Whangarei, Dairy Flat, Rotorua and Tauranga are for sale by deadline private treaty closing on December 12, unless sold earlier.

All five are signed to 20-year, triple-net leases with fixed rental growth of 4 per cent every two years. The leases have 16 years remaining.

Marketing brokers Shoneet Chand, Matt Prentice and Sean Honeycombe say the service stations are for sale either individually or as an entire portfolio.

“This is an outstanding opportunity to secure one or more high-profile service stations, each in high-growth regions around the North Island,” Chand says.

“The portfolio has been structured as a passive, long-term investment offering built-in rental growth, hands-free management and lucrative locations.”

Chand says the portfolio currently returns $765,771 net a year, with individual leases ranging from $122,653 to $186,900 a year.

The northernmost property in the portfolio is the Caltex service station at 10 Puketona Rd, Paihia — one of only two service stations in the poplar Bay of Islands tourist town. Chand says the property is currently returning $122,653 net in annual rent.

“Located on the main road in and out of Paihia, directly across the road from the only supermarket in town, this station services the local population and the large seasonal influx of tourists and travellers,” he says.

“The 2586sq m freehold property has a net lettable area of 639sq m, with 24 fuel pumps under a forecourt canopy, a retail area, a tyre bay and workshop, and a first-floor, four-bedroom residential flat.”

The Whangarei property, located at 303-311 Western Hills Drive, comprises a 210sq m Caltex service station on a 3093sq m freehold site.

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Caltex Tauriko. Photo / Supplied

Chand says the property returns $186,900 net in annual rent.

“With its roadfront position on Western Hills Drive — the main arterial route travelling north from Auckland — this service station benefits from huge exposure and traffic flow,” he says.

“The property has 24 fuel pumps under a large forecourt canopy, a retail area, carwash, freestanding LPG installation and a small storage shed.”

The Diary Flat property, located at 1433 Dairy Flat Highway, comprises a 214sq m Caltex service station on a 3690sq m freehold site.

The property is currently returning $163,538 net in annual rent.

“Boasting a large corner profile in fast-developing Dairy Flat, north of Auckland, it has huge exposure to Dairy Flat Highway,” Chand says.

“The property offers 23 fuel pumps under a large forecourt canopy, plus a four-pump diesel truck-stop. A retail kiosk and fenced LPG tank and gas bottle depot round out the offering.”

The Rotorua property, at 520 Te Ngae Rd, is being co-marketed by Mark Rendell of Colliers International’s Rotorua office.

Rendell says the 198sq m Caltex service station, on a 2536sq m freehold site, is returning $146,340 net plus GST in annual rent.

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Caltex Whangarei. Photo / Supplied

“Caltex Te Ngae is the nearest service station to Rotorua Airport, and benefits from being part of the wider Te Ngae shopping centre, which is home to a variety of local and national tenants,” he says. “The service station has 22 pumps under a large forecourt canopy, a retail area, carwash and fenced LPG tank.”

The Tauranga property, at 782R SH29 in Tauriko, is being co-marketed by Simon Clark of Colliers International’s Tauranga office.

Clark says the 248sq m Caltex service station, on a 3098sq m freehold site, is returning $146,340 net plus GST in annual rent.

“The property offers huge exposure and is strategically located in one of Tauranga's fastest-growing areas,” he says.

“Caltex Tauriko benefits from being the first service station on the western side of Tauranga, approaching the city.

“The Tauriko area is experiencing huge residential and commercial growth, with the burgeoning Tauriko Business Estate on the doorstep of the property.

“Tauriko is easily accessed from all directions, with excellent state highway linkages to and from Tauranga’s CBD and port, Hamilton, Auckland, Rotorua, Te Puke and Whakatane.”

The property offers 24 fuel pumps under a large forecourt canopy, two diesel truck pumps, a retail area and workshop.

Chand says interest in the portfolio is expected to be strong, given the good tenant covenant, long-term leases, high-growth locations and fixed rental increases. “The landlord has instructed us to present all offers, so take your pick or invest in all five.”