The land and building infrastructure sustaining what was once the cheapest fuel stop in New Zealand have been placed on the market for sale.
The un-manned purpose-built Gull petrol station in the busy township of Ngatea is situated on a 1,624 square metre freehold site at 44 Orchard West Road, also known as State Highway 2. Orchard West Road is Ngatea’s main street, and is part of the route linking Auckland and Tauranga.
Gull New Zealand Ltd is owned by parent company Caltex Australia, and has been a ‘disruptor’ amongst the established New Zealand fuel brands since it burst on to the retail scene in this country in 1998 by offering low-cost petrol and diesel. Caltex Australia claims to be Australia’s largest transport fuel supplier – with some 1900 sites.
Gull had the Ngatea site purpose built in 2011 and is one of the Waikato’s busiest self-service fuel stations. Now the Ngatea property, but not the fuel retailing business, is being marketed for sale by auction at 11am on August 16 through Bayleys Hamilton.
Salesperson Josh Smith said the rectangular-shaped property was being sold with an extensive list of chattels used to sustain the site’s fuel retailing activities, including:
• One 60,000 litre fuel storage tank and one 50,000 litre fuel storage tank
• Three pumps
• Four filling stations and
• Vapour recovery lines
Gull New Zealand Ltd is on a current 10-year lease at the Ngatea site, expiring in 2021, with four further five-year rights of renewal. The lease currently generates an annual rental of $57,783 plus GST. Gull’s fuel retailing hardware occupies some 96 square metres of the site, which is zoned commercial 8A.
Mr Smith described the property as a very hands-off investment underpinned by a modern fuel storage and delivery systems both aboveground and underground, with Gull managing all operational expenses such as the fuel dispensers, signage, phone lines for card payments and point of sales systems.
“The service station canopy in Orchard West Road is built of conventional steel framing on two columns and is clearly visible from the main road because of its height prominence,” he said.
Mr Smith said there was considerable potential to add value to the otherwise passive investment property by finding an economic use for a considerable portion of underutilised land to the rear and side of the fuel retailing activities, subject to any lease negotiations with Gull as head tenant.
“At the rear of the property – currently partly fenced off from the fuel station forecourt and accessed via a school service lane – is a large area of unused land which could be developed to increase potential income,” Mr Smith said.
“A common suggestion which has been made by several interested parties for future use of this portion of the property is the installation of a self-storage garages.
“Any future activity would however have to be compatible with Gull’s core business, which is fuel retailing.”