Service station offering expected to drive national investor interest
Investors from throughout New Zealand are expected to signal interest in the proposed sale and leaseback of two large Caltex service stations in Christchurch, located at Russley Road and Rangiora.
NZX-listed Z Energy Limited acquired Chevron NZ in 2016, including the fuel supply of the Caltex-branded service stations throughout the country.
Both Christchurch properties are now owned by Z and represent some of the last remaining operational sites trading as Caltex to align with either a leaseback or fuel supply structure.
The sites are owned by Z Energy 2015 Limited, a subsidiary of the parent listed company.
The properties are being marketed by Colliers International Investment Sales brokers Will Franks, Noel Gilchrist and Mark Macauley, General Manager of Colliers in Christchurch.
They will be auctioned at 10am on December 13, unless sold prior.
Under the sale and leaseback, Franks says Z would take a long-term lease of 10 years on both properties, from February 2019, with three rights of renewal of five years each.
The leases are set to provide for annual fixed growth of 2 per cent per annum with market reviews at the expiry of the initial lease term.
“Retail service stations are always heavily sought by national investors and we expect similar demand for these new format sites.
“Z is delighted to offer this opportunity for the market to invest in the land and buildings of these established retail service stations.
“They are two of the final company-owned sites under the Caltex brand to be sold and offer the market long-term leaseback arrangements.”
Earlier this year, Colliers sold a Nelson service station for $2,035,000, representing a yield of circa 5.8 per cent.
Macauley says the two freehold stations, which can be bought together or individually, provide all the key investment fundamentals.
“Both Christchurch stations enjoy high-profile corner sites and are located in established suburbs.
“They have a high traffic flow and are surrounded by excellent amenity and residential catchments.
“In the current investment environment, opportunities such as these do not come up often. These assets offer a substantial cashflow for investors.”
The 1,987sq m Rangiora site enjoys a high profile on the corner of High and King streets, in the town centre. Its proposed annual net rental is $190,035 plus GST and outgoings.
The Russley Road service station has a land area of approximately 4,249sq m. Its proposed annual net rental is $310,490 plus GST and outgoings.
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