Brand new fuel and retail investment in the booming south east
The highly active and in-demand fuel retail market will be stoked yet again at a major auction event next month, with a service station in a rapidly growing Victorian community to be put up for sale.
The auction of a United service station and three accompanying shops in Cranbourne North comes amid heavy and sustained activity in the sector, with properties leased to fuel retailers continuing to sell in large numbers and on sharp yields.
Leased to major independent operator United Petroleum on a 15-year lease, the brand new property at 1655 Thompsons Road includes leasing options to 2054 and occupies a prime 3,662 sqm corner site with 167 metres of combined frontage.
Located close to a Woolworths-anchored shopping centre and Bunnings Warehouse, the property returns $393,704 in net income, plus GST and outgoings, and includes three separately-titled specialty shops and 25 on-site parking spaces.
It is set to be sold at Burgess Rawson’s latest Investment Portfolio Auction on Wednesday, December 9, with price expectations of around $6.5 million.
Burgess Rawson director Shaun Venables said that with the surrounding Casey region expected to grow its population by more than 75% to almost 550,000 residents in the next 20 years, the property was in line to experience some of the most significant growth in the fuel and convenience retail industry.
“Cranbourne North is a high population growth area and is developing rapidly, as evidenced by the series of current and future residential development sites, schools and infrastructure in the immediate vicinity,” Mr Venables said.
“I would expect someone will buy this property and hang onto it for a very long time.”
The three supporting retail premises to be included in the sale are all leased to pizza, vegetarian and Indian restaurants, with two on seven-year terms and the other on a new five-year term.
Mr Venables said the COVID-19 pandemic had shone a light on just how resilient service stations are as investments.
“They’ve been able to trade right through Victoria’s lockdown, which is not something that can be said for a number of asset classes,” he said.
“They’re no longer just service stations, they’re effectively small supermarkets and convenience stores and they have proved critical to their communities throughout 2020, which underpins their future success.”
Burgess Rawson’s final Investment Portfolio Auction event of 2020 will be held from 10.30am AEDT on Wednesday, December 9, with more than 20 properties set to go under the hammer.