A SERVICE station next to Pacific Fair Shopping Centre on the Gold Coast has sold under the hammer for $10.1 million on a record low yield.
The winning bid equates to a yield of 3.13 per cent, which is believed to be the tightest ever recorded for a Queensland service station on a long-term lease.
It came from a private investor believed to be from mainland China, who flew to Queensland for the on-site auction and was among 30 registered bidders.
Bidding opened with a $6.8 million offer from a Taiwan-based investor, who also had jetted out for this week’s sale.
Auctioneer Peter Burgin announced the property was on-the-market when bidding hit $8 million and about 20 bids later finally knocked it down at $10.1 million.
JLL’s Sam Hatcher and Campbell Bowers, who were the marketing agents, said the sale exceeded expectations and was a positive sign for the Gold Coast.
“There continues to be significant and active capital attracted to assets that provide not only an secure income stream but also longer term development potential,” Mr Hatcher said.
Adjoining the Broadbeach shopping mecca on the corner of Hooker and Sunshine boulevards, the 7-Eleven branded asset has exposure to 60,000 passing cars a day and is one of southeast Queensland’s most high profile service stations.
It is understood the buyer has been circling a number of sub-$20 million investments in the region over the past 12 months.
The land-rich nature and long-term development upside of the Gold Coast property next to one of the state’s largest regional shopping centres was a significant drawcard.
Its existing zoning allows for development up to 54m or about 20 storeys but it is believed the new owner has no immediate plans for the Broadbeach site.
Spanning a total of 4952sq m, the property at 56 Sunshine Boulevard was sold with new 15-year lease in place to 7-Eleven Stores Pty Ltd, which also holds three five-year options.
It comprises a 7-Eleven convenience store, large canopy area with five fuel bowsers capable of servicing 10 vehicles and an automatic car wash.
The asset generates a rental income of 316,954 a year with 4 per cent fixed annual increases.
Demand from investors for service station assets has continued to intensify in recent times.
A Brisbane-based private investor recently snapped a McDonald’s and 7-Eleven service station at Palm Beach for $8.525 million on a yield of 5.46 per cent.
Originally Published: http://www.couriermail.com.au/