Service stations are fuel for savvy investors

3:04 PM Saturday July 27, 2019 True Commercial

Caltex Kaiapoi in Christchurch has a fixed price of $1.5 million.

Two Caltex service stations in Christchurch are being marketed for sale.

Caltex Kaiapoi has a fixed price of $1.5 million while Caltex Bishopdale is available for $1.3 million.

Both stations are offered with the option of purchasing the freehold land.
Broker Alex Ingrosso, of ABC Business Sales, says both businesses provide an exceptional investment opportunity.

They have each performed very well over the years and have a solid and positive outlook moving forward, he says.

“There have been some exciting changes recently in the Caltex network which are going to result in some great benefits to the retailers and their customers.

“Some of these changes will be seen publicly over the coming few weeks.

“Both sites are well maintained and have a modern outlook. The shops are ‘On the Spot’ stores, part of the Foodstuffs group, which is a high-quality offering covering the Pams and Budget ranges.”

The location of the two sites is top tier, too, Ingrosso says.

Both sites are on busy thoroughfares and service strong residential areas.

Bishopdale is directly across from the mall where there is a New World supermarket and several hospitality outlets, and Kaiapoi is just past the main centre of the town towards Sovereign Palms.

The Kaiapoi site has had recent redevelopment and is one of the newest sites to the network.

“It was completely rebuilt from the ground up in 2010 and was one of the early openings post-earthquake.

“The Bishopdale service station has a fascinating history. Operating as a service station since 1962, the site has only been through three different owners in its time and has been with the vendor’s family for the past 27 years.”

The site has had improvements made as recently as 2017 which means it has the latest systems installed.

“Getting down to business, turnover at Kaiapoi for the Financial Year 2019 was over $12m with total shop sales of more than $30,000 a week.

“Bishopdale had a total turnover of over $10m with the shop also performing handsomely.

“The return offered by each business is over 20 per cent based on the asking prices, which, considering they have existing management in place, is a desirable opportunity.”

Ingrosso says these businesses are ideal for someone looking to live an exciting lifestyle and be part of a dynamic industry.

“I have sold a number of these businesses recently and there is a trend in the South Island that the next generation of motivated owner operators are taking over these businesses. “It’s great to see as it’s how the Caltex model should operate and it’s good to see the businesses stay locally-owned by members of the community they service.”

For those who are new to the industry, Caltex operates as part of the Z Energy network though somewhat differently to the Z model as the Caltex sites are all independently-owned and operated by local business owners.

And, being in Christchurch means anyone living close by or moving there is a stone’s throw away from an array of outdoor activities and an enviable lifestyle, Ingrosso says.

Home to parks, reserves, beaches and a huge selection of dining options, Christchurch is a great place to work and play.

The commitment to transform the city into a 21st Century city means the local economy is being supported by a $40 billion investment which will drive decades of development.

This makes the energetic and resilient Canterbury region number one for growth in New Zealand.

The region is also one of New Zealand’s best-known and most highly developed business markets.