Petrol station property pumps profit
This property leased to a Gull service station is for sale at 386 Ti Rakau Drive, East Tamaki.
A significant land holding in a prime position on Ti Rakau Drive in East Tamaki earning returning just over a quarter of a million dollars in annual income from a service station lease will go under the hammer in Bayleys’ final Total Property auction on December 3.
Located on a 2121 sq m site at 386 Ti Rakau Drive the freehold property has been occupied by a Gull service station since 2000, with Gull Petroleum (NZ) Limited having a 15 year lease. This is currently producing net annual rental income of $261,183, with built in annual increases to the higher of the Consumer Price Index (CPI) or two per cent.
“The property has huge exposure to the main arterial road of Ti Rakau Drive and provides a real opportunity to invest now for a solid return and add value later,” says Tony Chaudhary of Bayleys Manukau who is marketing the property with colleagues Janak Darji and Shane Snijder.
The property comprises a purpose designed service station featuring a 226 sq m retail and services building together with a 390 sq m canopy over the forecourt area which has eight petrol service lanes. Gull sub leases the retail space to another tenant.
Tony Chaudhary of Bayleys.
Gull’s current head lease runs until December 21 next year with one right of renewal only which, if exercised, would take its final expiry date through until December 2020. “This gives a new owner a number of options longer term, including possibly developing the site more intensively to maximise its income return,” says Chaudhary.
The property is situated on the northern side of Ti Rakau Drive which is a six lane arterial road providing transportation connections between key growth locations that include Pakuranga, Botany, Whitford and East Tamaki.
“This gives the property massive profile to a high volume of passing vehicles that will be further enhanced once the busway from Panmure to Pakuranga and Botany is completed,” Chaudhary says. “It is also located in one of the fastest growing residential areas in the Auckland region with a strong established customer base.”
Surrounding development varies from industrial and office premises to bulk retail premises like the nearby Bunnings Warehouse, The Hub and Botany Town Centre. Public transport operates frequently along Ti Rakau Drive which is also within a few minutes’ drive of Highbrook Drive and Pakuranga Rd - the main arterial links to State Highway One’s southern and northern motorways.
“The Ti Rakau Drive offering is among 39 properties scheduled to go up under the hammer next Wednesday,” says John Church, Bayleys’ national director commercial.
John Church of Bayleys.
He says makes it one of the biggest ever commercial and industrial property auctions to be undertaken by Bayleys in Auckland. A further two of the properties have already been sold prior to next week’s auction while the auctions of another two have been brought forward to this afternoon (Subs: Wednesday, November 26) because pre auction offers have been received at a level which the vendors are prepared to sell at.
Church says the auction will cap off what looks certain to be the busiest year the commercial and industrial property market has experienced since the Global Financial Crisis struck back in 2008. He says prior to this year, a shortage of quality offerings across all prices sectors had been a handbrake on the market’s recovery.
“However, this has been alleviated somewhat in 2014 by an increase in listings as more property owners have taken advantage of a buoyant market to book some capital gain.”
What’s on offer?
The property: Site leased to Gull service station.
Location: 386 Ti Rakau Drive, East Tamaki.
Agency: Bayleys Manukau.
Sales method: By auction, December 3.
- High profile road frontage.
- Earns net annual rent of $261,183.
- Built in annual rent increases.
- Potential lease expiry date December 2020.
- Holding income while redevelopment planned.
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