An eight-service station portfolio with blue-chip tenant Gull with a weighted average lease term of 11 years represents an unrivalled opportunity that will provide long-term security for buyers in a market starved of future-proofed investments.
Often regarded as a prime example of a safe and secure property investment given the land extensive nature of service stations that sit within strong demographic catchments, the certainty on offer for purchasers with these sites makes for one of this year’s most highly anticipated investment opportunities, according to the brokers marketing the properties.
The eight sites are spread across the North Island from Wellsford in Auckland to Waipukurau in Hawke’s Bay and the properties can be purchased either individually or as a combined offering.
All are locked into identical 15-year leases to Gull New Zealand Limited, a wholly owned subsidiary of ASX-listed Ampol, that commenced in 2017 and expire in 2032. The lease terms offer annual fixed rental growth of the greater of either CPI or 2 per cent.
The total site area is 17,856sq m across the eight properties, returning $1,403,473 in net rental income. All above and below ground service station improvements are managed by Gull, making this a low maintenance, passive investment option.
Colliers has been exclusively appointed to bring these sites to the market and expressions of interest are to be lodged at the offices of Colliers, HSBC Tower, Level 23, 188 Quay Street, Auckland or via email to the nominated brokers before 4pm, Thursday 26 August.
Looking at the sites geographically from the top of the island, 207 Rodney Street in Wellsford, Auckland has a land area of 2,913sq m and returns $126,086 in net annual rent comprising $122,964 from Gull and $3,121 from the neighbouring Four Square supermarket, which uses the site for parking.
Nigel Ingham, Director of Colliers Whangārei, says Wellsford is a growth hot spot.
“This site represents the ideal bottom-drawer investment, while the continued urbanisation of Wellsford means it will enjoy healthy patronage for years to come,” Ingham says.
The 2,547sq m site at 258 Forrest Hill Road in Forrest Hill on Auckland’s North Shore is in a strategic location on a high-profile corner site returning a total of $343,462 in net annual rent. This is comprised of $205,662 from Gull and $137,800 from German Motors Limited operating as Auto Super Shoppe Forrest Hill.
Prominently placed, 125-127 Mokoia Road in Birkenhead, Auckland has a land area of 1,942sq m and returns $290,621 in net annual rent.
Heading south of the Bombay Hills, 59-61 Queen Street in Waiuku has a land area of 1,012sq m and a net annual rent return of $119,068.
Brokers from the South Auckland, CBD and North Shore offices at Colliers Matthew Barnes, David Burley, and Shoneet Chand all agree these properties represent a blue-chip purchase that will see buyers looking to acquire one, multiple or all of the properties on offer.
“Opportunities to acquire such a well-recognised, low maintenance portfolio or service stations of such significant size with attractive lease terms rarely come to the market,” the trio says.
“The land holdings on these sites offer potential for development in the future and we expect to hear from a wide-range of potential purchasers from across the region.”
15 Hampton Downs Road in Hampton Downs, Waikato boasts a land area of 4,133sq m and provides $108,243 in net annual rent, while offering great access from the motorway.
“This location is the second-to-last petrol station off State Highway One before the Auckland regional fuel tax kicks in, making it a high-volume site,” Palmer says.
“Its proximity to the Hampton Downs Motorsport Park is yet another tick in the box for an attractive investment.”
The Gull site at Tauriko in Tauranga comprises 2,000sq m on land at 757 State Highway 29.
This is another split-risk investment with a total net annual rental income of $125,582 with $109,668 coming from Gull and $15,914 from Coffee Empire who operate a takeaway coffee service on the site.
“This high-profile site is situated on the busy State Highway 29 with high traffic numbers traveling in and out of town over the Kaimai Ranges to and from the Waikato,” Clark says.
“It is also close to the vibrant Tauriko Business Estate and new Tauranga Crossing shopping centre, while the upcoming Tauriko West residential subdivisions are nearby.”
The final two sites are in Hawke’s Bay with 814 Omahu Road in Frimley, Hastings, and 15 Herbert Street in Waipukurau.
814 Omahu Road has a land area of 2,308sq m and returns $192,780 in net annual rent. There is also a sub-lease agreement to Night ‘n Day Foodstore Limited for a busy convenience store located on the site.
15 Herbert Street has a land area of 1,001sq m and returns $97,631 in net annual rent.
“The Gull at Omahu Road is part of a tightly held area of Hastings with the nearby industrial, agricultural, and horticultural sectors providing plenty of potential customers. It is also only a short drive to the Hawke’s Bay Expressway,” Blair says.
“The Waikpukurau site offers easy access and is the first service station coming into central Hawke’s Bay when heading south on State Highway 2.”
Ampol, formerly known as Caltex, is an ASX-listed company with a market capitalisation of nearly $7 billion and has a network of 1,900 service stations throughout Australasia.