A well-performing property on one of Whangārei’s busiest commercial corridors has come to the market at a time when investors are circling for good quality assets with strong income streams.

The hands-off passive investment opportunity at 47 Porowini Avenue, Whangarei comprises building, forecourt and canopy for the Z Energy U-Go business, along with a standalone automotive workshop that is independently run by Prestige Auto Customs. The 2,986sqm freehold site has some retaining, asphalt sealed driveways, carparking and landscaping to the front of the site.

The property has dual access with convenient entry and exit points to facilitate seamless customer flow and operational efficiency for both tenants. It also includes a secondary laneway, and is zoned Commercial, with the building area totalling 685sqm.

The Z Energy infrastructure was developed in 2014, while Prestige Auto’s premises comprise around 490sqm of space across a circa-1990s workshop building that has been updated, and a 2017-built workshop adjoining the original one.

The property generates a total net annual income of $213,903 net per annum. Z Energy has operated from the site since 2014 and has eight years remaining on its current term, with additional rights of renewal taking final expiry out to 2048 if all renewals are exercised. Prestige Auto has been on site since 2016 and has renewed its lease for a further six years with a final expiry of June 2035 if all subsequent renewals are exercised. Both leases have regular rent reviews and built-in rental growth for sustainable long-term cash flow.

Nigel Ingham and Henry Napier of Bayleys in the North Commercial are handling the sale on behalf of a New Plymouth-based private investor, with the deadline sale campaign closing Wednesday, 24 September, unless sold prior.

Saying this is prime Whangārei commercial real estate, Ingham says the location works well for both tenants as evidenced by the long lease terms and ongoing commitment to the site.

“The property is directly opposite the entry and exit to Mitre 10 Mega and benefits from high traffic flows from the busy arterial and easy access for customers, clients, and service vehicles. Surrounding occupiers include Northland Toyota, and Pacific Motor Group, reinforcing the strength of this established commercial precinct.

“Z Energy recently rebranded its Porowini Avenue operation under the company’s new U-GO self-service model, a simple, low-cost fuel model that aims to be competitive and disrupt the local fuel market by delivering savings for customers and the exposure the site has is clearly one of the selling points.

“The established local automotive operator has also carved out a good business on the site, and between the two tenants, there’s cash-flow resilience and investment flexibility, which is what investors and lenders are looking for.”

Ingham says Bayleys brokers are seeing increased enquiry and demand for tenanted investment stock, both from local buyers and those out of Whangārei.

“They’re looking for strong locations, resilient Income streams, and ideally hands-off opportunities. The subject property fits this bill, and we expect solid enquiry from private investors, family trusts or other investment entities.

“We haven’t seen a lot of passive, good quality assets come to the market recently in Whangārei, and this is a straightforward one.

“The additional laneway access not only adds operational flexibility for the existing operators, but also supports future development, enhancing the site’s long-term investment appeal and versatility.”