Mr Collins commented: “These transactions highlight a strong start to the year for single tenanted assets and continued support from the major banks to finance service station investments, demonstrating they are still eager to lend on the right products with strong covenants and long lease tenure.”
Coles Express Murwillumbah, a brand-new service station with three-street frontages, was sold for $5,800,000 at a yield of 5.95%.
The 1,597sqm, Pacific Highway site is leased to Eureka Operations, offering a ten-year triple-net lease agreement with fixed increases of 3.25%.
A local investor purchased the Tweed Shire property, which is situated 13km south of the Queensland border, adding to their existing service station investment portfolio.
The second transaction involves 7-Eleven Windaroo, which was sold prior to CBRE’s Premium Property Portfolio Auction for $6,300,000 at a yield of 5.97%.
Mr Demetriou said; “The property is leased directly to 7-Eleven, Australia’s largest convenience and independent petrol retailer with approximately 13 years remaining on the triple-net lease, providing the investor with a true ‘set and forget’ opportunity.”
The freestanding service station was built approximately 20 years ago on a 2,704sqm site located half way between Brisbane and the Gold Coast on the highly trafficked Beaudesert Beenleigh Road.
It was acquired by a New South Wales based investor, marking their first service station investment.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.