OVERVIEW'
... {entry maintained for historical mention only}...
The "Flagstaff Park Fuel Depot" was constructed at the Flagstaff Park Industrial Precinct, which was purchased in 2016 as a development site for large scale industrial uses. The land was rezoned and Ingham's Ltd purchased 7ha of the 54ha site and built a $65m chicken feedmill which opened in January 2019, now producing up to 12,000 ton of chicken feed per week with 1,000+ truck movements in and out of the factory each week.
The "Flagstaff Park Fuel Depot" is sited at the entrance to the feed mill and adjacent an internal road which is under construction. The depot's construction was completed in January 2020 and supports the logistics companies servicing Ingham's, neighbors to the South Big River Feeds / Big River Pork, neighbors to the North Hampel Poultry and other local agricultural businesses that use the depot. A new solar thermal farm and gas power station is planned for the Precinct development, in addition to a new sawmill and pet food manufacturer in the process of relocating to Flagstaff Park, all requiring substantial logistics support and therefore there is significant growth in fuel sales expected in the medium term.
THE BUSINESS'
The fully automated "unmanned fuel distribution facility" features two diesel pumps and one AdBlue pump, with automated outdoor payment terminal (OPT) which is accessible via the Internet to view sales data, update diesel and AdBlue pricing, run and export reports.
The facility has 56,000L diesel capacity and 7,000L AdBlue capacity. The design of the site accommodates road trains and trucks with trailers, with high flow switches on the pumps allowing for fast filling of high quantities of diesel.
Also of note is the 4m fuel price sign, featuring 1,500mm x 500mm LED screen, which has a 3G media system so can also be controlled via web with images, videos at excellent quality. These assets were all purchased new.
The operations require no employees, with minimal accounting admin and adjustment of sale prices occasionally. Three 4K security cameras and a video doorbell next to the payment terminal help monitor the site and are all accessible via an app on your phone or computer and records footage to the cloud. The doorbell can be rung if anyone needs help using the payment system, which rings on your mobile.
A strong customer base has been established and sales volumes vary between 10,000L - 16,000L per week, depending on activity levels at Inghams.
Diesel prices have remained fairly stable and demand from the Ingham's trucks has been reliable and is expected to increase in the near future, together with growing activity from new tenants at the Industrial Precinct, the sales volumes are forecast to rise by 30%-100% over the next year.
KEY FEATURES'
1. Minimal Outgoings
a. Lease over the property: A 10 + 10-year lease is registered over the land title (of approx. 4,000sqm). Lease payments are based on a 4 (four) cents per litre of diesel or AdBlue sold, paid monthly in arrears.
Note: there is no fixed rental only this turnover rent which significantly reduces risk
b. Electricity is supplied by an "off-grid" solar system owned by the vendor on adjacent land, which can be utilised on an agreement of $50 per month
c. Water (B-class recycled) for the irrigation system is currently supplied by a tank on adjacent land which can continue upon agreement with the vendor
d. Landscaping maintenance is by ORANA on a need's basis
e. Council rates and taxes are paid by the tenant. Details supplied
f. The depot has a Telstra modem for the security cameras, doorbell and payment terminal with a separate SIM card for the LED sign
g. Insurance arranged by MGA brokers and fuel supplier (Perry's) has additional insurance for when refilling tank
h. Minor subscription costs for the website hosting and website editor
2. Fuel Supply Agreement
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REASON FOR SALE'
The vendors are property developers and not business operators and they have a significant development program under construction currently.
The Business Sale Includes:
*All fixed assets of FPFD
*Transfer of the long-term land Lease
*Secure return on investment
*Great opportunity to build on the current business turnover which is
forecast at > $1million in the first full year of trading.
Investment:
*Stock (fuel in tank at date of settlement) at cost
*Business' plant and equipment assets list supplied with actual costs
*Fair market value TBA
*Low risk business
*"Hands-off investment" - Little to no management time required
*No employees
E&OE
