Investor nabs Melbourne service station for $7.3 million, bidding from quarantine in Beijing

Published on: 14 December 2020

A Melbourne-based investor bidding via Chinese messaging and social media app WeChat from hotel quarantine in Beijing has won the keys to a United petrol station in Cranbourne North, paying $7.3 million.

Burgess Rawson director Billy Holderhead said the buyer had been attracted to the growth prospects of the suburb, which is 39 kilometres south-east of theĀ  Melbourne CBD.

“Because of the area’s continued growth, Cranbourne investment property always attracts plenty of interest,” Mr Holderhead said.

A new 15 year lease to United Petroleum, as well as the inclusion of three separately titled specialty shops and 25 on-site parking spaces had also motivated the winning bidder.

The property was being sold by two brothers who has developed the site that was completed earlier this year.

Burgess Rawson reported a clearance rate of 95 per cent on the day, with 17 properties sold for a combined value of $51.1M.

The tightest yield – 4.2 per cent – belonged to a newly built drive-through Starbucks in Berrinba, Queensland, which attracted fierce bidding in the room, online and via the phone.

That property sold for $3.754 million to a Sydney-based buyer who was bidding via phone.

Burgess Rawson director Raoul Holderhead said the mixed bidding modes represented the fundamental change the industry has faced during 2020 and in the face of the COVID-19 pandemic.

“While the turnout at Crown was fantastic, we had a large number of investors bidding via phone and online, including interstate and internationally,” said Mr Holderhead.

“This really demonstrates how buyer behaviour has adapted over the course of the year and we have certainly accommodated that, offering various methods to watch the auction and bid.”

Other properties to sell on the day included a Red Rooster restaurant in Rockhampton, Queensland, which attracted 59 $1000 bids, and sold for $3.04 million on a yield of 5.65%.

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