Situated on the N3 in Natal this brilliant site operates as an independent “white label” site
The business is sold with the 13Ha of land on which the truck stop is built and it employs 28 people
Profit before Tax for the FY ending June 2022 was R12,2m
The projected profit for the FY ending June 2023 is R12,6m with EBITDA of R13.2m
The business has two revenue streams:
• Overnight parking
The current parking capacity is 370
Size of existing parking area: 52,250 m2
The nightly parking fee is R150 (incl. VAT)
The number of trucks parking per month averages almost 10,000, with over 330 truck parked on average per night
Parking revenue has grown by more than 12% year on year for the last 3 years.
• Diesel sales (through a retail license)
Current direct diesel sales str approaching 400,000 litres/month with margin on each liter sold about R1,20
Diesel volumes via a 3rd party on consignment is almost 600,000 litres / month with a handling fee of R0,34 / liter paid to business on these volumes
The business owns all the equipment on site, including 500,000L storage capacity (2 x 83,000L storage tanks and 6 x 46,000L storage tanks), 6 x bauzers, pumps, canopy etc
They buy diesel from wholesalers on a COD basis and have no long-term agreement with any wholesaler in place.
- Asking Price:
- R107,000,000
- Sales Revenue:
- R100M - R500M
- Cash Flow:
- R12,200,000
Property Information
- Real Estate:
-
Real Property Included
- Location:
-
Located on the N3
- Premises Details:
-
13Ha of land on which the truck stop is built
- Size in square feet:
- 13 ha
- Planning Consent:
-
Full planning consent in place
Business Operation
- Expansion Potential:
-
The parking area is over full on many nights and they often have to turn trucks away so there is need to expand to cope with the growing demand
They have applied for permission to expand the truck stop by another 100 parking bays and are now waiting for final approval from the DoT which should be in place before end 2023
The CAPEX required to expand the parking from the current and build more ablutions will be R3,2m
To operate in a completely different league the truck stop should be fully tarred (approximately R28m), and then raise the parking fee by 12% (In today’s terms it will go from the current R150 to R168 comfortably
Diesel sales have trebled over the last 3 years, and they cannot sell much more diesel unless they add 2 more islands and canopy cost will R2,5m
Within 18 months they can comfortably reach 800,000 litters sold directly to customers per month once more islands are installed
The margins on diesel sales can also be increased dramatically once the business is a Level 1 or 2 BEE business
Additional Opportunities:
• Truck Wash. For which there is a massive demand
• Tyre Repair shop
• Truck repair center
• Storage facilities
• Laundry
• Salon
• Restaurant
- Competition / Market:
-
Yes there is competition
- Reasons for selling:
-
Personal will be divulged to serious buyer
- Trading hours:
-
24 hours 7 days per week
- Employees:
- 28
