Vicinity Centres has sold and settled on their EG Fuel Service Station in Altona North, adjoining their Altona Gate shopping centre. The service station was sold for $3,120,000, representing a sharp yield of 2.64%.

The fuel station, which has a unique ground lease structure that expires in 2024, attracted interest from a mix of investors, owner occupiers and developers.

Stonebridge Property Group’s Kevin Tong, Rorey James and Justin Dowers handled the transaction on behalf of Vicinity.

“It was one of the most hotly contested campaigns our team had seen over the last few months, receiving 15 formal bids on the property. Ultimately, given the ground lease nature expiring in 2024, it provided an abundance of flexibility to release the asset at a market rent or occupy the petrol station themselves.” Add Mr. Tong

Rorey James also commented that “Ultimately the service station was purchased by local owner occupier who will have the option to operate their own business out of the site or negotiate a new lease to a petrol station operator”

Prime located petrol stations remain popular amongst investors, especially those who have an abundance of vehicle traffic. In the case of EG Fuel Altona North, being directly opposite to one of Vicinity’s major shopping centres was a key benefit to ensuring the site will always remain highly trafficked.