Occupying a high-profile corner site with significant road exposure, a service station with a blue-chip tenant in Otago is sure to grab the attention of buyers looking for an opportunity to acquire a prime asset with long-term upside.
24 Greenwich Street, Waihola is home to an NPD service station that sits on a 2,150sq m freehold site that is spread across two titles.
It is zoned Urban Resource Area by the Clutha District Council.
NPD will begin a new 15-year lease term on settlement that includes three further rights of renewal for 10 years each.
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The annual rental income from the lease agreement is $150,000 plus GST and outgoings.
The strong fixed annual rental increases, along with market reviews through the lease, are sure to attract those with an eye to growth.
The site benefits from sitting on Greenwich Street (State Highway 1) and has frontage to North Foreland Street.
The property provides dual access and was designed with functionality in mind as it sees considerable passing traffic numbers.
Waihola is a popular summer holiday destination that is approximately 30 minutes’ drive from Dunedin and is located on the main route that links to the Central Otago region, which includes tourism hotspots Queenstown and Wanaka.
Colliers Directors Dean Collins and Sam Staite have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 19 October, unless sold prior.
Developed in 2015/2016, the purpose-built site includes an On the Spot retail store, which spans 198sq m, and features a steady stream of customers, including travellers and locals.
Collins, Director at Colliers Otago, says service stations are highly attractive purchasing opportunities and this premier offering fits that bill.
“Service stations are keenly sought among buyers given their tremendous investment fundamentals as an essential service that is underpinned by ongoing consumer demand,” Collins says.
“The subject site includes a strong tenant covenant with the current occupier signed to a long-term lease that includes multiple renewals. The built-in rental growth through 2.25 per cent annual increases adds further appeal.
“NPD is a well-respected, family owned and operated distributor of quality fuels and Castrol lubricants.
"They are a household name in the South Island and have begun expanding into the North Island. They now have more than 90 locations across the country.
“With a focus on providing their clients with the highest quality offering, NPD invest heavily in their sites, improvements, technology, and fleet and have gained huge market share off the traditional brands who occupy New Zealand’s fuel supply market.”
Staite, Director of Industrial at Colliers Christchurch, says the location of the property means it occupies a prominent position that is highly visible for road users.
“Located on State Highway 1 you cannot miss this service station and it offers convenience for a wide array of customers,” Staite says.
“The immediate surrounding properties are a mix of residential and commercial. Other surrounding developments include the Waihola Community Centre, which is located directly opposite the subject site with a cafe and a restaurant nearby.
“When examining the pertinent factors such as the profile of this site, which is home to a national brand tenant signed to a long-term lease, this property shapes as a highly appealing purchasing opportunity.”
- Article supplied by Colliers
