Truck refuelling site north of Wellington

5:00 AM Wednesday July 26, 2017 Colin Taylor

This sliver of land at 50 Takapu Rd in Grenada North is fuelling investor interest. Photo / Supplied

Land housing a truck refuelling stop is for sale at Grenada North between Johnsonville and Tawa off State Highway 1 near Wellington where it is earning annual net income of over $60,000.

The 1247sq m site on the corner of Takapu Rd and Jamaica Drive, at the gateway of the Grenada Business Park north of the capital city, is leased to BP Oil New Zealand Limited.

The parcel of land is currently being subdivided off a larger site with the new title and paperwork expected to be completed in the last quarter of this year. It is owned by Building Solutions, the original developers of the Grenada Business Park and one of the region’s most prominent industrial property companies.

Designated as 50 Takapu Rd, the sliver of land is the last piece of individually-titled land from the original Tawa Golf Driving Range which made way for the Grenada Business Park 13 years ago.

Fraser Press and John Pritchard of Bayleys Wellington say the sale represents an ultimate passive investment proposition.

“It’s quite possibly the best earnings an investor could get from a ‘hunk of concrete’,” says Press.

“There’s a sound arm’s length lease in place and all of the truck stop plant and equipment is owned and maintained by the tenant. It doesn’t get much easier than that for an investor.

“It’s a ‘bottom drawer’ opportunity to be tucked away and effectively forgotten about while clocking decent returns and having it appreciate over time.”

BP Oil New Zealand Limited pays a net rental of $60,766 and has operated a truck stop from the site since taking an initial 10-year lease with renewal rights in November 2007. Renewal rights have already been exercised meaning the lease now runs through to November 2022.

Press says there are no other truck refuelling stops in the immediate area and there is a ‘non-compete’ clause in play.

“As it’s located close to the busy Grenada Business Park and handy to State Highway 1, the piece of land will always be in demand as a truck stop facility however, there could be a higher use for it sometime further down the track.”

Given the location and the Business 2 zoning, it is understood that industrial units could be built on the land dependent on due diligence undertaken through Council channels.

Press says Grenada North has some of the lowest industrial vacancy rates in the Wellington region and its underlying fundamentals have ‘future-proofed’ property in the area.

“Roading projects such as Transmission Gully and the proposed link between Petone and Grenada will further cement this area as a strategic industrial and logistics hub.”

Given the attraction of the offering and the fact that the land is yet to be valued, Press says the auction on August 3 will see market value established in the auction room.