Energy retailing site for sale has investors fuelled up

A Z Energy truck stop and associated workshop and residential property is being offered for sale - with options for redevelopment and passing income.

Bayleys Hawke’s Bay is marketing 428 Main North Road, Bayview, Napier for sale by way of deadline private treaty by March 11 unless sold sooner.

The fuel and accommodation site is on Napier’s main northern arterial route of State Highway 2 and just minutes from the Napier central business district and close to Hawkes Bay Airport.

The property is well known by locals for having a long history as a fuel outlet - with Napier City Council records showing an original building application by Beacon Motors Ltd in 1964 for the construction of a service station and adjoining living accommodation.

Bayleys Hawke’s Bay salesperson Sam MacDonald said the upcoming vacancy of the anchor fuel tenancy offered a rare opportunity for either a new fuel provider or other retail operation to be established in one of the region’s busiest traffic locations.

Mr MacDonald said that the corner aspect, combined with the inclusion of the existing accommodation gave any new owner plenty of avenues to explore for further development of the site going forward.

“A cursory look of similar retail operations in the area shows growing demand and opportunity in the food and beverage and convenience retail offerings. The strategically-positioned corner site at 428 Main North Road has immense profile with over 12,500 vehicles passing daily,” Mr MacDonald said.

“In addition to the fuel tenancy the recently refurbished three/four bedroom dwelling along with the workshop and fully fenced yard gives a diversified income stream. Currently the property has an approximate net income of $98,588 per annum with scope for further growth.”

MacDonald said enquires for either purchase of the entire property or interest in the upcoming lease expiry for the Z Energy portion in October 2020 would be considered.

The wider Napier/Hastings population has recently grown to over 125,000, now bigger than Tauranga or Dunedin.

Napier is a popular tourist city of more than 60,000 residents, partly because of its concentration of 1930s art deco architecture built after the inner city was largely destroyed in the 1931 Hawkes Bay earthquake.

Nowadays it is enjoying a boom in visitors underpinned by growth in pip fruit, wine and forestry.

A highlight is the Art Deco Week held in mid-February. It is one of the biggest art festivals in the world and it has become a mecca for all things Art Deco-related, including cars, fashions and of course, buildings. More than 25% of visitors of the 2019 events were from other countries.

The expanding economy is evident at Napier Port which has been enlarged with a range of developments such as a recreational boat marina, and recently the shares in the port company were released in a successful float that also attracted many employees to take an allocation.

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