The Caltex station at 10 Puketona Rd, Paihia, is on the tourist town's main thoroughfare. Photo / Supplied
The Caltex station at 10 Puketona Rd, Paihia, is on the tourist town's main thoroughfare. Photo / Supplied
A portfolio of five upper North Island service stations is for sale with the bulk of the properties' 20-year leases still to run.
The four Caltex stations and one BP station are generating a combined annual net rental income of $685,464.
Featured in Bayleys' latest Total Property portfolio, they arebeing offered for sale on behalf of one vendor through Alan Haydock and Damien Bullick, Bayleys Auckland, by tender closing July 12 unless sold earlier by negotiation.
"All these offerings have just over 16 years left on their leases - and properties with this length of tenure hardly ever come up for sale," says Haydock. "The leases also have built in-rental growth, providing two-yearly fixed rental increases of four per cent, with the next increase due in November, as well as reviews to market in November 2023 and on renewal.
This Caltex station at 303-311 Western Hills Drive, Whangarei, is exposed to heavy traffic on SH1. Photo / Supplied
"In addition, the triple net lease structure means tenants cover ongoing maintenance and capital expenditure. It's a perfect bottom-drawer, hands-off investment opportunity."
Bullick says all of the properties are strategically positioned in high exposure locations on busy roads and all of the leases run until October 31, 2033, with four three-year rights of renewal.
The portfolio comprises:
• 1. A Caltex station at 520 Te Ngae Rd, Rotorua, situated on a high profile 2536sq m corner site: It is the nearest major service station to Rotorua Airport, a drop off point for rental vehicles. The property, which is earning net annual rental income of $140,712, also has the advantage of being integrated with the Te Ngae shopping centre which has a variety of national and local tenants. Developed in the 1990s, the service station comprises a large forecourt and 198sq m Caltex Fix shop, along with a car wash.
• 2. The Caltex station at 1433 Dairy Flat Highway, Auckland: Generating net income of $157,248 per annum, the property is well positioned to service the surrounding rural community as well as passing traffic from its 3690sq m corner site on State Highway 17. Constructed in the 1980s, facilities include a 215sq m retail building with storage, a car wash, associated forecourt and canopy, along with eight fuel pumps. To the southern end of the site is an LPG installation facility and additional gas bottle depot.
• 3. A Caltex station at 303-311 Western Hills Drive, Whangarei: Located on a 3041sq m site with excellent exposure to high volumes of traffic travelling the main arterial route through Whangarei on State Highway 1. The site also benefits from right-of-way access off Selwyn Avenue through a neighbouring property tenanted by Burger King. The service station was developed in the 1990s and consists of a main 210sq m retail and administration area, canopy and four fuel pumps plus a car wash and an LPG tank holding area. It is producing net annual rental income of $179,712.
• 4. A Caltex station at 10 Puketona Rd, Paihia: Occupying 2586sq m of land opposite a Countdown Supermarket on the main thoroughfare into and out of Paihia, the Bay of Islands' principal tourist town. The property is generating net annual rental income of $117,936, with further complementary activities undertaken in a 639sq m two-level building on the site. The ground level contains the service station shop and forecourt plus two sub-tenants, a tyre bay and workshop and an auto and marine workshop. On level one, an additional sub-tenant occupies a residential flat.
• 5. A BP station at 176 Commerce St, Kaitaia: A high-profile 1788sq m corner site in three titles at the northern end of the town's commercial district,generating rent of $89,856pa. In addition to the primary service station and retail functions, the property features a car wash, workshop, LPG installation area and secondary diesel pump for commercial vehicles.
The BP station at 176 Commerce St, Kaitaia, occupies a high-profile corner. Photo / Supplied
Bullick says the long initial lease terms, combined with fixed rental growth and hands-off triple net lease structure make the property investments a rare opportunity which should attract long-term strategic investors.
Alan Haydock and Damien Bullick, Bayleys Auckland.
