High octane Northland investment opportunity

The long-term leased Gull service station on State Highway 16 at Kaukapakapa has been placed on the market for sale giving investors the chance to acquire a defensive commercial asset in a growing lifestyle area.

Purpose-built in 2019, the modern fuel and retail facility is a manned site and services the evolving local catchment and passing travellers, providing strong branding visibility and direct vehicular access along a major arterial route connecting Auckland and Northland.

The improvements include a fuel forecourt and canopy, convenience shop, amenities and associated service areas to support efficient, high-volume fuel and retail operations.

The site design and layout provide clear separation between refuelling areas, customer vehicle movements and pedestrian access to the retail area, supporting safe and practical day-to-day operation.

The landlord-owned fuel infrastructure fit-out includes underground fuel tanks, pipework, vapour recovery systems, automatic tank gauging and associated civil and compliance works. This infrastructure forms part of the landlord’s fixtures and fittings and remain with the property.

Tenant-owned items include point-of-sale equipment, branding, signage, canopy lighting and general electrical fit-out, and the day-to-day operation, maintenance and compliance obligations sit with the tenant.

The property is fully leased to Kaukapakapa Service Station Limited trading as Gull, a nationally recognised fuel provider. There is a 17-year lease in place from 19 April 2019, with one further 17-year right of renewal from April 2036. The property returns annual net income of $163,105 plus GST and outgoings and there are two-yearly rent reviews to the greater of market or CPI. A bank guarantee equivalent to three months’ annual rent and outgoings plus GST is also in place.

Graeme Perigo, Craig Smith, and Ben Clare of Bayleys are handling the sale of the stratum in freehold property at 1079 Kaipara Coast Highway, Kaukapakapa with the deadline private treaty campaign closing Wednesday 11th March, unless sold prior.

The long-term lease structure with mechanisms to support stable and predictable income, is what will appeal to astute investors wanting a durable asset with strong cashflow, says Perigo.

“Service station investments are back on investor radars as the return on investment is competitive in comparison to many other industrial options, with the net lease structure providing a hands-off income stream.

“Bayleys has transacted several fuel station assets in the past 18 months, underpinned by favourable leases and the defensive retail profile underpinned by consistent demand for fuel.”

Perigo says another point in the Kaukapakapa property’s favour is the broad nature of the business operation, and the role it plays in supporting the local community.

“This essential services asset offers significantly more than fuel. Alongside the modern forecourt, the site operates as an official NZ Post centre with private mailboxes and full parcel and letter services. Combined with its convenience retail offering, it’s a core component of the township’s daily life.

“Continued migration from Auckland by people seeking a better lifestyle has put Kaukapakapa firmly on the map for families. Located around 45 kilometres northwest of Auckland’s CBD, the township is a key service hub for the surrounding rural and lifestyle catchment, with sustained residential growth underpinning its expanding population.”

The Business – Local Centre zoning supports convenience retail and commercial activity to service the surrounding residential communities, and this designation supports the ongoing use of the property as a service station and retail facility.

Local amenity within Kaukapakapa has been strengthened by the recent refurbishment and reopening of hospitality venues within the village centre, contributing to increased activity and vibrancy. These improvements support ongoing visitation and demand for convenience-based services within the township.