Competition to be strong for prime 7-Eleven investment
Investors seeking blue-chip assets with significant growth potential are expected to compete strongly for a 7-Eleven service station in a pocket of Melbourne that’s set to boom.
Located only minutes from Highpoint Shopping Centre and a large format retail precinct anchored by Bunnings Warehouse and other major retailers, the freestanding opportunity at Maidstone in the city’s west has unquestionable investment credentials.
Featuring a brand new 12-year net lease to Australia’s number one convenience retailer with fixed 3% annual rent increases, the property at 10 Hampstead Road will soon be supported by a drive-through Starbucks, car wash and other retail currently under construction.
The property also has favourable net lease terms that see 7-Eleven pay all rates, building and public liability insurances and benefits from fixed 3% rent increases every year.
It will be auctioned at Burgess Rawson’s next Portfolio Auction event on Wednesday, December 9.
Burgess Rawson’s Jamie Perlinger, who is steering the campaign with Scott Meighan, Raoul Holderhead and Zomart He, said the asset was positioned to benefit significantly from the development of the surrounding area.
“If you draw a line 8km from the Melbourne CBD in any direction, this is almost the last place that hasn’t already experienced that gentrification and redevelopment,” Mr Perlinger said.
“It will be a completely different area in three or four years’ time than what it is today, and this site is going to be a lot more valuable in a decade.”
The 7-Eleven sits within a precinct earmarked by local council as an area that will transition to mixed-use development, while the Maribyrnong City area is projected to see a 72% increase in population to nearly 157,000 people by 2041.
“Opposite the property is a two-storey childcare centre under construction, and only a few hundred metres away the Hampstead Park residential development is in the works, with 157 two, three and four-bedroom townhouses being built.”
“It’s a location that’s going places and in five years’ time an investor will be very happy with their decision to buy in now.”
The property is further supported by closely located major retailers including Harvey Norman, Spotlight, Officeworks, The Good Guys and JB Hi-Fi, while more than 19,000 cars currently pass the site daily.
It returns an estimated net rent of $323,525 plus GST.
Burgess Rawson’s final Investment Portfolio Auction of the year will be held at 10.30am AEDT on Wednesday, December 9.