Fuel-based convenience retail properties are continuing to drive deals with plenty of demand from cashed-up investors still left in the tank.
In the latest of a steady flow of transactions in the popular asset class, a Caltex-anchored service station south of Brisbane has changed hands on a yield of 6.9 per cent.
It been snapped up by a Gold Coast-based private family in a cash unconditional $7.735 million deal brokered by Re/Max Commercial’s Deepen Khagram.
The recently-developed property at 946-960 Greenbank Rd, North Maclean, comprises a net lettable area of 486sq m across three tenancies on a 1.2ha site.
It was sold through an expressions of interest campaign with a 10-year lease plus four five-year options in place to Caltex Australia Petroleum Pty Ltd.
The other tenants include Subway (124sq m) and Total Moving Solutions (121sq m) on leases of 10 years and three years, respectively, plus options.
Mr Khagram said the property attracted strong interest with more than 90 inquiries fielded during the campaign, resulting in six offer being put on the negotiating table.
“Demand is always very strong for well-located assets like this with secure covenants and high quality improvements,’’ he said.
“These fuel-based retail properties are highly sough-after. We had a broad range of both local and interstate interested parties and the sale really reflects that prevailing strong investor demand out there.”
Other recent transactions include the $9.8 million sale of a portfolio of three service stations across Greater Brisbane, $8.37 million for a United service station at inner-city Woolloongabba, $4.28 million for a Puma service station at northside Geebung, and $12.1 million for two regional fuel-based retail assets.
Strategically located on a corner holding, the North Maclean property has direct exposure to Mt Lindesay Highway and about 23,000 passing vehicles daily.
Mr Khagram said the asset also was perfectly positioned to take advantage of its proximity to the nearby emerging communities of Flagstone and Yarrabilba.
“There’s a lot of growth in that neck of the woods and this site is strategically placed to benefit from those growth areas,” he said.
The service station asset generates a combined rental income of $533,344 a year net.
Peter Lunney, a consultant involved in the sale, said the modern service station/travel centre was very well designed with separate canopies for both passenger vehicles and trucks as well as ample customer parking.
Extracted from The West