Service station site fuels investor interest

The upcoming sale of a strategic CBD-fringe service station site is tipped to fuel keen interest from buyers seeking a premium passive investment.

The Herne Bay property housing the established BP 2go Jervois Road sits with exceptional profile on a key arterial close to Auckland’s city centre, motorways, and one of New Zealand’s most affluent residential catchments.

The property generates an annual net rental return of $165,916 plus outgoings and GST.

The tenant has recently committed to a new five-year lease which runs to 2031, with rights of renewal available through to 2046.

“With fixed rental increases delivering guaranteed income growth and protection against inflation throughout the lease term, this property is truly a set-and-forget investment that will provide steady and growing returns for years to come,” says Bayleys salesperson Michael Nees.

“Combining strong underlying land value, dependable income and a highly sought-after address, this is a trophy investment.

“It presents buyers with a rare chance to secure a commercial property offering both income and long-term capital appeal in a multi-million-dollar location, but at an accessible price point,” says Nees.

BP 2go Jervois Road is one of more than 200 service stations nationwide operating under the brand of global energy giant BP, which has operated in New Zealand since the 1940s.

Open 5am to 11pm, seven days a week, it offers a range of petrol and diesel fuels, convenience retail sales, and services including BPme - Pay in Car, an ATM and trailer hire.

The property at Unit 8, 47-55 Jervois Road is being offered to buyers through Nees, along with Damien Bullick and Alan Haydock, of Bayleys Real Estate.

It is one of four portfolio properties to be sold individually, together, or in any combination, on behalf of the same vendor, by tender closing on Thursday 22 October (unless sold prior).

Bullick says the unit-titled Jervois Road property offers a floor area of some 531 square metres.

“This includes a small retail, office and amenities block plus the forecourt canopy. The site contains on-site parking and is accessible via two vehicle entry/exit points on Jervois Road.

“Constructed in the 1980s, this is a low-maintenance property that comes with an A-plus grade Initial Evaluation Procedure seismic rating of 100 percent of new building standard.

“With a proven international-brand tenant in place and a secure lease structure, this is a truly hands-off investment requiring minimal management,” says Bullick.

Haydock, who heads Bayleys’ Auckland Metro Markets team, says the address is a proven and popular site for a service station, with future flexibility afforded by Business – Mixed Use zoning under the Auckland Unitary Plan.

“The property sits proudly with outstanding exposure to busy traffic on Jervois Road, the main thoroughfare linking Auckland’s most prestigious residential suburbs to the city centre.

“Ponsonby Road, Wynyard Quarter and the inner city are within a few minutes’ drive, as are motorway on and off ramps – spelling exceptional connectivity for businesses and customers.

“Herne Bay has long been considered one of New Zealand's most desirable suburbs, characterised by high-value housing, limited commercial stock and strong barriers to entry for new investment opportunities.

“This combination of prestige, accessibility and scarcity underpins strong occupier demand and long-term value growth, making Jervois Road one of Auckland's most sought-after commercial investment locations,” Haydock says.