Value at the pump for passive investors

The freehold land and purpose-built buildings supporting a busy 24-hour Z Energy service station have come to the market, underpinned by a secure long-term lease to an NZX listed tenant.

The Z Waikumete service station at 4155 Great North Road, Glen Eden, was built in 2018 and enjoys a high-profile position within The Groves, a modern mixed-use precinct that includes retail and service operators such as Burger King, Anytime Fitness, BestStart childcare centre, and a laundromat, alongside an adjacent residential development.

The property comprises a 228sqm retail building and a 551sqm weather protected forecourt with canopy and four double sided fuel pumps, plus fuel storage and supply infrastructure including electric vehicle charging. The 1,964sqm site is zoned Residential – Mixed Housing Urban, providing a favourable planning framework that enables higher intensity development and strong long term land use flexibility.

Z Waikumete is one of more than 550 stations owned and managed by Z Energy Limited, providing a strong tenant covenant. The Glen Eden site has around 11 years remaining on its initial 18-year lease term and generates $330,837 net per annum plus GST. The lease includes two six-year and one five-year right of renewal, along with fixed rental growth provisions, offering investors secure and predictable income over the long term.

The property is for sale by tender closing Thursday 12 March, through Alan Haydock and Damien Bullick of the Bayleys Auckland Metro Markets team, and Craig Smith, Bayleys NorthWest.

With its sound lease, modern facilities, and exceptional arterial profile with approximately 50 metres of frontage to Great North Road, Haydock says the property represents one of the most dependable passive investments currently available in Auckland’s commercial market.

“The bankable lease credentials are what investors and lenders are seeking in today’s investment market.

“With a lease expiry of 2053, and the wider Glen Eden area undergoing residential growth which grows the customer base, the fundamentals are all there for buyers wanting a solid bottom drawer investment.”

Haydock emphasises that mixed use precincts have performed strongly across recent economic cycles, and Z Waikumete benefits directly from this trend.

“As it is located within an active retail and service hub surrounded by established residential neighbourhoods, the station draws steady demand from a broad and consistent customer base.”

The property was formerly home to Palmers Garden Centre and sits on the northern side of Great North Road, a main thoroughfare linking numerous established and rapidly growing West Auckland suburbs including New Lynn and Henderson. Kelston Mall, WestCity Waitākere, and LynnMall are all in close proximity, while the Auckland CBD is around 15km away.