A private buyer has acquired a foothold within Adelaide’s strengthening retail investment market, after scooping a Shell service station in Edwardstown for $5.75 million.
The Edwardstown Shells/Coles Express, located at 1112 South Road, was sold with a brand new 10 year lease – and three additional five-year options – to Viva Energy Australia.
The property, which is situated on a 2,430sqm site, benefits from a high profile location in Adelaide’s main north-south transit corridor, as well as more than 95 metres dual road frontage.
CBRE’s Will Brown and Ben Heritage negotiated the sale on behalf of developer Emmett Property via a Private Treaty sales process.
Mr Brown said the property’s strong tenancy profile underpinned the strong sales result.
“Achieving a yield 5.7%, this sale highlights the strong demand currently in the market for single tenant leased investments,” Mr Brown said.
“Retail assets backed by high profile, national covenants such as Viva Energy offer an attractive and secure investment opportunity.”
Mr Heritage said the property, which offered a commencing net income of $328,000 per annum, said investment opportunities of this quality attracted strong buyer interest.
“Rarely does a brand new retail leased investment of this quality within Adelaide be put to the open market giving investors the opportunity to secure a long term cash flow,” Mr Heritage said.
The South Road site represents the second sale of a Shell Coles Express branded station to be negotiated by Mr Brown and Mr Heritage in 2015, with a Park Holme station selling for $4.80 million in May.
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