Australia’s fuel retail sector has reached an interesting new chapter, with the first local service station leased to global energy giant Sinopec officially changing hands. The site at 325A Nepean Highway in Frankston has sold for $6,415,000, achieving a strong yield of 5.81 per cent.

Strong Buyer Interest

The property sits on a parcel of nearly three thousand square metres and attracted keen attention from investors. Five offers were submitted during the campaign, with a Sydney based buyer ultimately securing the purchase. The same investor has now bought multiple service station assets in recent months, showing continued confidence in fuel retail as an essential services category.

Sinopec Begins Its Australian Growth Push

Sinopec is one of the largest energy companies in the world and consistently appears in the top tier of the Fortune Global 500. The Frankston location is the first step in the company’s local rollout, with plans to introduce as many as four hundred service stations across Australia over the next few years.

Long Term Stability for Investors

The site benefits from a long lease term and sits in a high visibility position on a busy arterial route, making it an appealing long term investment. Industry observers say the sale reflects the growing interest in international fuel brands entering Australia, as well as the overall resilience of the sector during uncertain economic conditions.

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