735 Derrimut Road Tarneit VIC 3029
Melbourne based developers Strintzos Property Group have sold out of their 7-Eleven anchored Service Centre in Tarneit, capitalizing on the huge demand in the fuel sector with a sizzling sale price of $19.91m, reflecting a sharp passing yield of 3.9% and fully leased yield of 4.8%.
Located in Melbourne’s west, the development has attracted a mix of convenience and food related tenants, including multinational companies, 7-Eleven and KFC. Vendor, Mr. Strintzos of Strintzos Property Group, said he is proud of the development which has been well designed to accommodate each tenants’ requirements.
The Service Centre, which was marketed whilst under construction (off the plan), was sold to a local Victorian investor who outbid another local party during the second round of the public Expressions of Interest campaign.
Rorey James, Kevin Tong and Justin Dowers from Stonebridge Property Group exclusively handled the transaction.
“The eventual sale price and yield are reflective of the market’s appetite and pent-up demand for the sector. Local, interstate and international buyers continue to be starved of opportunities, with this campaign yielding 7 other unconditional offers who have missed out yet again.”
“However, what was particularly strong about this transaction, was the inclusion of the 7 specialty shops, 3 of which were vacant, and the lack of impact this had on the yield.” – Stonebridge Director, Rorey James
The Centre is located on over 10,000sqm on the corner of Derrimut and Doherty’s Road with exposure to nearly 34,200 vehicles per day. The agents noted the underlying land component coupled with the major growth occurring out in the west was a major focus for their campaign.
Stonebridge said the developers had timed their campaign to perfection.
“The owners chose to market this property at a very opportune time. Yield has become very hard to find as have quality assets. If you can locate an asset that also offers a very strong lease profile including, arguably, recession-proof convenience centres, you jump on it, which is exactly what our buyer did here.’’ Mr James said.
Stonebridge have another major fuel investment coming to market in Melbourne’s thriving South East suburb of Clayton.
The Service Centre is anchored by BP (12 Year Lease) and Carl’s Jr. (15 Year Lease) plus two (2) complementary warehouse tenants returning circa $695,000 pa. The property has a long WALE of 12 years.
“This is one of the most strategically located convenience Centre’s in the southeast of Melbourne, given its significant corner exposure and access. The position of the Centre sits between the Clayton prime retail strip and the constantly growing commercial and industrial precinct.”
“The opportunity provides fixed 3% growth in the rent which will be highly attractive, especially for those investors looking at a long-term horizon acquisition”. – Stonebridge Director, Kevin Tong
Spread over 6,693sqm of land, the newly build property provides significant depreciation tax benefits for the incoming purchaser. The Public Expression of Interest campaign will close on 17th March 2022.
