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Investors’ demand for solid income-generating petrol stations is heating up, with two sales deals brokered for a combined $17 million.
A BP service station at 1235 Plenty Road, South Morang, in Melbourne’s suburban north-east, sold for $10.35 million. It sits on a high-exposure land parcel with about 20,000 vehicles passing daily.
The BP outlet at 1235 Plenty Road, South Morang, sold for $10.35 million.
The property, which generates rental income of $548,000 a year, has 3 per cent annual rental increases across an initial 12-year lease, with options to extend to 2052, according to selling agent Jones Real Estate.
Jones’ Tim Spargo and Luke Peric handled the deal, together with Jonathan McCormack and Stephen Gorman, from Gorman Allard Shelton.
A second fuel station in inner-suburban Hawthorn fetched $6.7 million, reflecting a tight yield of 3.94 per cent.
The 7-Eleven outlet, at 747 Toorak Road, sits on a 2697 square metre land parcel with direct street frontage of more than 100 metres.
Burgess Rawson’s Jamie Perlinger, Campbell Bowers, Zomart He and Yosh Mendis sold the property to a private investor at the firm’s regular portfolio auction.
7-Eleven leases the corner site on a 10+5+5 year basis, paying annual rental of $264,128.
The sale comes on the back of another deal in Sydney, where a 7-Eleven outlet in Jamisontown, 56 km west of the central business district, sold for $6.2 million – a yield of 4.99 per cent.
Stonebridge Property Group has sold a 3424 sq m Officer land parcel on behalf of the state government’s Development Victoria for $2.82 million – a land rate of $825 a sq m and a new benchmark for the suburb.
The property, on the corner of Bridge Road and Cardinia Road, attracted more than 100 inquiries and several offers from local and Asian developers during an expression of interest campaign. The purchaser is a childcare developer.
Stonebridge’s Julian White, Dylan Kilner and Chao Zhang handled the deal.
The property was offered with a two-year leaseback to Development Victoria, which has several other Officer projects in the pipeline, including the development of a townhouse estate – Olio – and a town centre.
White said it was the sixth development site in the suburb sold by the company recently, and he expects demand to remain strong, with particular growing interest from the fast food and childcare industries.
Renowned restaurateur and chef Paul Cooper will open a new venue in the Yarra Valley after purchasing a restaurant, bar and function centre for $5.2 million.
Cooper, also owner and chef at the Fergusson Restaurant and Winery in Yarra Glen, has studied under some of the world’s best chefs. He plans to revive the original Stix and Stones restaurant and add a steak house at the new 410 Main Road site in Lower Plenty.
The sale was brokered by CVA’s Leo Mancino, together with Morrison Kleeman the team.
The property, about 17 km from the CBD, features a landscaped garden, restaurant, bar, and a function centre at its heart. The building has a footprint of 435 sq m and seats about 200 guests.
“There was a lot of interest in the site, which created a sale price above the vendor’s expectations,” Mancino said.
The Stix and Stones restaurant at 410 Main Road, Lower Plenty, will be revived.
Retail, food and medical property investments were popular at Burgess Rawson’s portfolio auction in Melbourne, with a range of convenience stores and restaurants selling under the hammer for a combined $27.9 million on a blended yield of 5.55 per cent.
Restaurants were in high demand, with the Pettah Road Café at 549 Burwood Rd, Hawthorn, selling for $2.35 million, reflecting a yield of 4.88 per cent, while Namak Indian restaurant, at 254 Chapel St, Prahran, fetched $2.1 million on a yield of 5.38 per cent.
Demand for regional properties continues, with a medical centre in Wodonga selling for $4.6 million. The sale of the Leongatha Nextra newsagency was strongly contested by eight bidders before being sold for $924,000 on a yield of 5.98 per cent.
Burgess Rawson chief executive Ingrid Filmer said the combined tally for Melbourne and Sydney portfolio auctions totalled $59 million, with a blended yield of 5.67 per cent.
In the Sydney sale, the Taylor Early Learning Centre, in the ACT, changed hands for $5.52 million on a yield of 5.51 per cent.
The top price of $9.15 million was paid for a group of four restaurants at Campbelltown, reflecting a yield of 6.22 per cent.
Echuca’s historic Rice Mills site has hit the market, offering one of the largest development opportunities near the regional city’s CBD in recent times.
Fitzroys is managing an expression of interest campaign for the 3.5-hectare development site at 36-90 Annesley Street, with price expectations of at least $6.5 million. A local consortium has held the property for a number of years.
The Rice Mills stored and processed the commodity for decades and employed many people in the area until its closure in 2003.
“It’s a fantastic time for buying in Echuca, which is headed for a strong period of growth, and this site is one of the last vacant Commercial 1-zoned parcels of land in the region,” said selling agent David Bourke, who is handling the deal with Brent Glassford.
“There’s a whole range of potential uses for the site, including retail, office, hotel, childcare, aged care, specialist residential or medical,” he said.
The Echuca Rice Mills development site.
Jacobs and Lowe has sold a 240 sq m medical centre at 757 Nepean Highway for $1.51 million. Michelle Adams handled the deal.
Quality Architects has leased 118 sq m at Level 10, 224 Queen Street, for three years a gross rent of $525 a sq m in a deal negotiated by JLL’s Sam Friend and Hannah O’Brien. The fully fitted property has eastern CBD views and new end-of-trip facilities.
Belle Property Commercial has leased the 215 sq m ground floor at 204-218 Lygon Street, Carlton, to Grillers Mark Burger Bar for $65,000 a year.
The firm also leased a 27 sq m site at A/475 Toorak Road to a takeaway café operator at $1070 a sq m.
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