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Provincial petrol station and retail hub fuels interest
Provincial petrol station and retail hub fuels investor interest
The newest and biggest commercial retail hub in the Manawatu has been placed on the market for sale.
Completed at the end of last year and now fully tenanted, The Rangitikei Junction hub is the biggest commercial property in Bulls. Anchor tenants include Foodstuffs with its Four Square supermarket, and BP Oil operating its BP service station and truck stop. All three of these tenancies have initial 15 year leases with final expiry leases expiring in 2041 and 2043 respectively.
In total, the Rangitikei Junction hub has 11 tenancies on the 1.65 hectare freehold property and encompasses 142 customer car parks. Combined, the tenancies – which range in size from 47 square metres through to 2489 square metres - produce net revenue of $544,901 plus GST per annum.
Rangitikei District Council has a 15 year lease on one of the units within Rangitikei Junction, while the majority of remaining tenants are convenience and fast food operations. The Rangitikei Junction zone has been built by privately-owned property development company Wallace Development Company Limited.
The Rangitikei Junction hub is being marketed for sale at auction on December 2 through Bayleys Palmerston North. Salesperson Karl Cameron said Wallace Development’s highly successful ‘highway hub’ retail concept delivered an ‘all-in-one’ retail location of complimentary businesses.
Bulls sits on a strategic crossroads of State Highway One which runs through the central North Island, and State Highway Three which links nearby Palmerston North with Wanganui and Taranaki. New Zealand Transport Agency figures show an average of 12,768 vehicles pass by the location on a daily basis.
“The Rangitikei Junction development encapsulates many of the convenience retailing and automotive supply trends which have been evident globally over the past decade. Core to the hub offering are the supermarket and petrol station operations which initially attract customers to the location,” Mr Cameron said.
“Time and motion studies have shown a high cross-over rate of customers between the two outlets – with customers finding convenience in either undertaking their shopping then filling up with fuel, or filling up with fuel then undertaking their grocery shopping, either without having to make a separate journey.
“Foodstuffs as a brand has been at the forefront of this dual-convenience trend in New Zealand – with a many of its newer Pak ‘n’ Save locations now including adjoining petrol stations.”
Mr Cameron said a ‘magnet’ business philosophy was also behind the strategy for pulling together five complimentary rather than competing food outlets into the Rangitikei Junction location. Each of the tenancies has its own entrance facing out toward the centre car parking area, and its own staff amenities.
Mr Cameron said the ‘crossroads’ location of Bulls ensured Rangitikei Junction was patronised not only by Bulls locals, but also by the thousands of passing vehicle drivers and passengers travelling in all directions of the two state highways located adjacent to the entrance of the centre.
Traffic counts were one of the key assessment criteria Wallace Developments based any of its locations on, he said. In conjunction with both BP and Z Energy, the company had built identical hubs in the Auckland suburbs of Otahuhu, Henderson, Northcote and Albany, as well as regionally in Palmerston North, Wanganui, Taupo and the Kapiti Coast.
“That high traffic count, combined with the quality of the build, and the complimentary nature of the adjoining tenancies, makes Rangitikei Junction a very attractive investment opportunity for sustaining long-term tenants,” Mr Cameron said.
ENDS
Bayleys Real Estate
New Zealand
Bayleys is New Zealand's largest full-service real estate company. We offer expertise in the marketing and sale of a wide range of property, including residential real estate, farms and lifestyle blocks, and commercial and industrial property. This includes tourism and business sales such as hotels and motels. We also cover the real estate markets in Fiji and other Pacific Islands.
Bayleys also provides a complete property and facilities service including property management and valuations teams focused on achieving both Owner and Tenant satisfaction.
No other real estate company can match our breadth of coverage across all market sectors throughout New Zealand.
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