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