With hands-off passive investors actively seeking pivotally-located property opportunities underpinned by strong tenant
covenants and long lease structures, the freehold land and buildings occupied by Z Waikumete in Glendene are expected to
fuel the interest of well-resourced buyers.
The modern and busy 24-hour Z Energy service station opened three years ago and occupies around 1,964 square metres of
land. The quality improvements include a retail building, a generous all-weather forecourt canopy, four double-sided
fuel pumps, plus fuel storage and supply infrastructure.
Occupying the former Palmers Garden Centre site at 4155 Great North Road, Glendene – one of West Auckland’s main
arterial routes – the property is for sale by Deadline Private Treaty closing 4pm Wednesday 28 July, unless sold prior.
It is being marketed by Bill Lissington, Bayleys Auckland Central, in conjunction with Shoneet Chand and Caroline
Cornish of Colliers, and the property is expected to resonate with investors, family trusts and private syndicate buyers
Lissington said the low interest rate environment, a shortage of prime investment property with scale, and the
post-COVID economy are factors that elevate this offering in the current market.
“There continues to be a wall of cash pursuing well-returning commercial and industrial property and, in the hunt for
returns, assets such as this one are in high demand,” said Lissington.
“As an NZX and ASX-listed entity, Z Energy is a creditable occupier having carved out a formidable presence in the
Auckland market and boasting a nationwide portfolio of more than 200 service stations, around 160 truck stops,
pipelines, terminals and bulk storage infrastructure.
“With domestic travel escalating post-pandemic, fuel stations are attracting increased patronage which further
underscores the value Z Energy brings to the investment equation – particularly when coupled with its vast commercial
and wholesale supply client base.”
The Z Energy lease commenced in 2018 and has 15 years to run, with further rights of renewal taking the final expiry out
to 2053, if fully exercised.
The property returns $315,172.79 plus GST per annum on a full net lease, with OPEX 100 percent payable by the tenant.
The lease incorporates rental reviews benchmarked to CPI on each third anniversary of commencement, with reviews to
market every sixth anniversary – including renewal dates.
Lissington said the site is zoned Residential – Mixed Housing Urban under the Auckland Unitary Plan, which further
solidifies the investment opportunity.
“This is a relatively high-density zone allowing significant intensification of development and there have been some
game-changing initiatives in recent years that have altered the face of Glendene,” he said.
“The Z Energy property is part of a forward-thinking 1.21-hectare master-planned development known as The Groves, that
was undertaken by seasoned developers Matvin Group.
“It successfully integrates residential living options including apartments and terraced housing, with commercial
activities – effectively creating a new neighbourhood centre which leverages a significant current and growing
residential catchment and nearby trade and service businesses.”
The Groves’ retail offerings include childcare centre BestStart Glen Eden, the Anytime Fitness neighbourhood 24-hour
gym, Burger King and other commercial tenancies.
“This creates a functional and streamlined hub where filling up the family car can be combined with dropping the
children to day care,” said Lissington.
“The Z Energy-occupied property epitomises a best-in-class bottom-drawer passive investment with the all-important
fundamentals of a respected tenant covenant and a well-structured long-term lease – all in an area that is undergoing
strategic growth.”
The suburb of Glendene is slightly west of New Lynn, while Henderson is to the north-west. This stretch of Great North
Road in Glendene records daily traffic counts of around 40,000 cars. The subject property is around 10 minutes’ drive
from the north-western motorway and approximately 14km from Auckland’s CBD.
Z Energy is a publicly-listed company on the New Zealand and Australian stock exchanges, and has around 10,000
shareholders.
It has a more-than-15-percent stake in Refining NZ which runs New Zealand’s only oil refinery, and a 25-percent stake in
Fly Buys operator Loyalty New Zealand. It is also the wholesale fuel supplier to the Caltex-branded retail service
station network.