Adelaide, 27 May 2015 – A local private investor has acquired a purpose built retail service station in Park Holme for $4.80 million.
The 2,000sqm corner site, located at 606 -610 Marion Road, includes a custom retail shop of circa 150sqm and canopy which was purpose built by Emmett Property for the Shell Coles Express branded service station.
The property is leased to Viva Energy Australia Limited on a 10 year term, with options for up to 20 years extension. The site has a net income of approximately $275,000 per annum.
CBRE’s William Brown and Ben Heritage negotiated the sale on behalf of Emmett Property via an off-market campaign.
Mr Brown said this rare investment opportunity was highly sought after amongst investors and resulted in a strong yield of 5.73%.
“The main road positioning and desirable long-term tenant commitment appealed to a range of buyers, leading to a competitive sales campaign,” Mr Brown said.
“The interest in the property reflects current strong demand for well leased retail investments. Investors are actively seeking higher returns on their equity and are looking to commercial property as the preferred investment in today’s market,” Mr Brown added.
Mr Brown expects yields on similar type assets to remain at these levels as investors continue to pursue long term leased investments and to take advantage of the current record low interest rates.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.