A Caltex-leased service station in Sydney’s northwest is expected to sell for more than $11 million under the hammer on Tuesday.
The 2880-square-metre site at 192-198 Pennant Hills Road, Thornleigh, has about 78 metres of frontage on the highway.
It has been leased to Caltex since the property was built in 1991. While its lease was due to expire in 2019, the ASX-listed fuel network last year requested to extend the term until 2034, with options until 2054.
The net rental income from the service station is almost $550,000 a year plus GST, which is paid yearly.
Michael Gilbert, from Burgess Rawson, is selling the property with colleague Rhys Parker.
“The big thing obviously is that it’s such a rarity to have the rent paid annually in advance with all of the outgoings also paid by the tenant; it’s a very, very high-profile location,” Mr Gilbert said, adding that it was the last Caltex before drivers entered the M1 Pacific Motorway.
He noted that most of the more than 180 inquiries on the property had come “overwhelmingly” from high-net-worth private individuals and family offices. More than 40 contracts were given out.
“Sydney’s population is growing – the key arterial roads such as Pennant Hills Road, despite all the bypasses that have been constructed, are still going to remain the major thoroughfares in Sydney. Well-located service stations on good leases are always going to sell well,” he said.
“There’s ever more land releases and medium-density housing to accommodate that growth in population and all of these people are going to have cars.”
The service station is close to Thornleigh Marketplace Shopping Centre, which Charter Hall Retail REIT offloaded for $43.1 million in May 2018.
The Thornleigh service station is one of 21 commercial investments across NSW, ACT and Queensland to go under the hammer at the Burgess Rawson auction, with price expectations ranging from $500,000 to more than $12 million.
Four childcare properties will be on offer, with prices between $1.8 million and $4.5 million. One centre in Thornton, in greater Newcastle, earns more than $197,000 a year and has a new 15-year lease to the ASX-listed G8 Education with options to 2053.
The portfolio auction will be held at Doltone House Hyde Park, 181 Elizabeth Street, Sydney, from 11am.
Go to Commercial Real Estate’s Facebook page to watch the first two properties being auctioned live.
Extracted from commercialrealestate.com.au