A busy highway fuel stop site with two additional tenants is expected to have investors pumped as it goes up for sale in a strategic location just north of Napier.
The Waitomo Bay View fuel stop sits on a profile corner site on State Highway 2, close to Hawke’s Bay Airport and the turnoff to Taupo, and is well placed to capitalise on the large-scale government investment in repairing roads damaged by Cyclone Gabrielle.
The fuel stop, an industrial workshop and a four-bedroom home on the site generate a combined net rent of $117,840 plus outgoings and GST per annum.
Main tenant Waitomo Fuel provides 60 percent of the rent on a 25-year lease term (including renewals) with favourable built-in CPI and market rent reviews.
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Founded in Te Kuiti in 1947, the Kiwi-owned and operated Waitomo chain is now one of New Zealand’s largest independent fuel suppliers with around 80 stations nationwide.
Opened under the Waitomo brand in mid-2022, the 24-hour Bay View fuel stop offers retail and commercial customers Unleaded 91, Premium 95, Diesel and GoClear via six refuelling spots.
Payment at the unmanned station is made at the pump via EFTPOS, credit card or Waitomo fuel card, or via the Waitomo app, as part of a business model driving customer growth with low fuel prices.
The freehold property at 428 Main North Road, Bay View, Napier, is being marketed for sale by deadline private treaty closing on Friday 8 March (unless sold prior) through Rollo Vavasour of Bayleys Havelock North.
Vavasour said the approximately 1,980-square-metre site contained buildings with a floor area of some 650 square metres housing the fuel stop, workshop and dwelling, along with plenty of parking.
The site is zoned Rural Settlement under Napier’s district plan.
“The tenant has installed modern, high-specification pump and tank infrastructure at significant expense and a large part of the land has been improved with concrete hard stand,” he said.
Vavasour said buyers could target the Bay View property purely as an investment or had the option to move in and treat it as a home and income.
“The presence of triple diversified income streams from three established tenants is a point of difference and an added advantage over the already in-demand, but relatively scarce commercial property investment presented by fuel stations.
“Beyond the Bay View area, the drive north via State Highway 2 or northwest via State Highway 5 involves long stretches without service stations, making this an important location for travellers needing to fuel up.
“This is the case for through traffic as well as for drivers setting off from accommodation in Bay View, including a holiday park across the road from the Waitomo fuel stop and another a few hundred metres away.
“The fuel stop business is also ideally placed to take advantage of the multi-billion-dollar government-funded roading recovery programme, mostly focused on roads north of Napier, which should increase traffic capacity and volumes into the future,” Vavasour said.
- Supplied by Bayleys
