7 Eleven anchored Tarneit Service Centre returning $972,000 pa.
Melbourne based developers Strinzos Property Group and Dacland have put their brand new 7-Eleven anchored Service Centre in Tarneit to the market as demand intensifies for assets offering strong lease profiles.
Located in Melbourne’s burgeoning west, the service centre includes a 7-Eleven petrol station and convenience store; fast food restaurant KFC (Ground Lease); Magic Carwash and seven (7) individual food tenancies, returning circa $972,000 per annum net on a 11.3 year WALE.
Stonebridge Property Group Justin Dowers, who is managing an expressions of interest campaign for the property with Rorey James and Kevin Tong, said the sale could hardly have come at a better time.
“The owners have chosen 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.’’ – Justin Dowers, Stonebridge Partner.
He said the underlying land component of convenience centre coupled with the major growth occurring out in the west will be very attractive to investors.
“This is one of the most strategically located convenience centres in the west of Melbourne given its significant corner exposure on both Derrimut and Dohertys Road. The position will continue to benefit from greatly increased traffic flows as more and more residential houses are being developed in the area.’’ – Rorey James, Stonebridge Director.
The facility is located on over 10,000sqm on the corner of Derrimut and Dohertys Road with exposure to nearly 34,200 vehicles per day. Immediately surrounding the site is an abundance of new residential housing being developed by major groups including PEET and Dahua, with over 12,000 lots within the immediate catchment.
Mr James said the property’s rental income was estimated to grow 51% over a 15-year investment horizon based on the fixed annual rental increase to all tenants. He said purchasers would also benefit from the fact that the asset is brand new, providing substantial depreciation benefits and minimal capital expenditure requirements.
“The service centre offering at Tarneit is very similar to a convenience shopping centre, but with fixed increases in the growth. The fixed growth in the rent will be highly attractive with investors especially given the majority of the tenants grow by 3% per annum.”
“We are taking increasing enquiry from local investors who have been starved of opportunities. Add that significant pent up demand to that of interstate investors, with borders opening up again soon, and we anticipate seeing very strong competition for the limited amount of stock available for the traditional pre-Christmas rush.’’- Kevin Tong, Stonebridge Director.
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