A portfolio of 23 service station properties throughout New Zealand is being marketed for sale through Colliers International.
The NZ Energy Portfolio spans properties from Paihia to Invercargill — each offering a high-profile-location on a main arterial or State Highway; many also offer a prime corner frontage.
The portfolio earns some $3.5m per annum from leases to the country's largest transport energy company, Z Energy, on 21 of the properties, plus two operating under Mobil and Waitomo Energy brands respectively
Investors are being offered the opportunity to purchase any number of properties, from a single service station through to the entire portfolio.
Offers by way of deadline private treaty close at 4pm on April 24, unless the properties sell earlier.
The capital markets director at Colliers, Jason Seymour, says the portfolio represents a truly significant opportunity.
"This is a chance to secure some of New Zealand's most visible and well-frequented properties across a geographically dispersed area," he points out.
"Each service station offers exceptional tenant covenant, a prime location and a long-term lease with locked-in rental growth. The vendor is a private investor who has built up a substantial service station portfolio as Z Energy divested some of its property assets. Due to the portfolio's size and scope, the vendor is offering significant flexibility to buyers."
Seymour says one option is to acquire a single property as a standalone investment.
A second option is to purchase more than one property, perhaps selecting a regional grouping of properties.
Finally, investors can purchase the complete portfolio.
There are 11 properties in the North Island, including in the Far North, Bay of Plenty, Gisborne, Hawke's Bay, Manawatu, Taranaki and Wairarapa.
The other 12 properties are in the South Island, with half in Christchurch and the remainder in Blenheim, South Canterbury, Otago and Southland.
The portfolio offers a weighted average lease term of 6.43 years and a combined 2018 annual contract rental of more than $3.5m.
Rent reviews include fixed increases of 2 per cent to 2.5 per cent a year, with market reviews either on renewal and/or every fifth, sixth or seventh anniversary.
The freehold properties, which have a combined site area of 6.03ha, are as follows:
Waitomo Paihia: a single 1,012sq m title at 140 Marsden Rd, Paihia, subleased to Hamilton-based Waitomo Energy;
Z Whakatane: A 2770q m site on four titles at the corner of Domain Rd and King St, Whakatane;
Z Fairy Springs: A 2566sq m property on two titles at 23 Fairy Springs Rd, Rotorua;
Z Gisborne: A single 3028sq m title at 300 Gladstone Rd, Gisborne;
Z Havelock North: A 700sq m property on one title at 30 Havelock Rd, Havelock North;
Z Heretaunga St: A 2427sq m property on a single title at the corner of Heretaunga St West and Southland Rd, Hastings;
Z Stratford: A 3036sq m property on three titles at the corner of Broadway and Regan St, Stratford, Taranaki;
Z Marton: A 2,131sq m property on two titles at 166 Broadway, Marton;
Z Ferguson St: A 2521sq m property on one title at 374-378 Ferguson St, Palmerston North;
Z Pioneer Highway: A 3271sq m property on two titles at 676 Pioneer Highway, Palmerston North;
Z Masterton: A 2182sq m property on two titles at 80 Chapel St, Masterton;
Z Grove Rd: A 2706m site on two titles at the corner of Grove Rd and Budge St, Blenheim;
Mobil Riccarton: A 2016sq m property on one title at 33 Riccarton Rd, Riccarton, Christchurch, subleased to ExxonMobil subsidiary Mobil Oil New Zealand;
Z Addington: A 3447sq m property on three titles at 250 Lincoln Rd, Addington, Christchurch;
Z Templeton: A single 4922sq m title at 720 Main South Rd, Templeton, Christchurch;
Z Brougham St: A 3654sq m property on one title at 495 Brougham St, Christchurch;
Z Bryndwr: A single 2753sq m title at 52 Strowan Rd, Bryndwr, Christchurch;
Z Linwood: A 2193sq m site on one title at the corner of Linwood Avenue and Cashel St, Linwood, Christchurch;
Z Caroline Bay: A 5795sq m property on two titles at 62 Theodosia St, Timaru;
Z Oamaru: A 1357sq m property on two titles at 22 Severn St, Oamaru;
Z Green Island: A 1400sq m property on two titles at 185 Main South Rd, Green Bay, Dunedin;
Z Mosgiel: A single 2138sq m title at the corner of Gladstone Rd and Quarry Rd, Mosgiel, Otago;
Z Gladstone: A 2858sq m property on one title at 455 Dee St, Gladstone, Invercargill.
As the tenant on 21 of the properties, Z Energy supplies around 43 per cent of New Zealand's total fuel needs across the Z and Caltex branded networks.
It supplies fuel to retail customers as well as large commercial customers like airlines, trucking companies, mines, shipping companies and vehicle fleet operators.
Z is a publicly listed company on the New Zealand and Australian stock exchanges.
Information memoranda with rental and tenancy schedules for individual properties — or a summary of the portfolio — are available from the Colliers capital markets team.