Westernport Service Centre, 910 Thompsons Road, Cranbourne West, VIC 3977
Stonebridge has recently announced the sale of 5 Service Centres totalling circa $50 million, showcasing the confidence in the asset class from private investors.
The highlight of the sales was Westernport Service Centre in Victoria, which sold for $16,300,000 representing a strong yield of 5.44% following a competitive expressions of interest campaign. The fully leased service centre comprises a BP (Jasbe covenant), Carl’s Jr. and Souvlaki GR on a large c. 2 ha landholding.
Kevin Tong commented on the deal, “The sale represented a strong yield for a service centre investment of this scale. The buyer was motivated to acquire the asset before June 30 due to the upcoming stamp duty reforms in Victoria. Given the size of the asset and the scarcity of blue-chip retail opportunities, many groups who bid had previously engaged with us in shopping centre or supermarket campaigns.
Rorey James noted, “We have seen a real resurgence in confidence for convenience assets in the last few months with many top investment firms and advisors signalling that now may be a strategic buying window. This is partly driven by the rare opportunity to purchase assets below their replacement cost together with a general view of the longer term viability of these assets, especially those in core locations.”
Further north, the land rich Viva Shell Coles Express in Mount Annan, NSW was acquired for $10,100,000 on a 6% yield while the 7-Eleven in Eight Mile Plains, QLD, sold for $8,000,000 at a 6.41% yield.
Michael Collins commented “The campaign for Viva Shell Coles Express Mount Annan has been a strong barometer for the depth of interest that exists for prime Sydney metro fuel & convenience retail assets. Despite the 2 year WALE, we received a flood of enquiry from our national database of investors who all saw considerable upside in the site’s large land area, strong land value, and high-profile location.”
The transactions were rounded out by the sale of a 7-Eleven in Melton South, VIC, for $11,111,000 at a 6.39% yield and the EG Fuel in Oakleigh South, which sold for $4,000,000 at a 6.25% yield.
Justin Dowers noted “There have been several strong service station transactions completed by our team in recent months, demonstrating the market’s confidence in the fuel and convenience sector. Assets that are well-located with large landholdings, like the Westernport Service Centre, have consistently shown strong transaction results”
These transactions are the latest in a series of successful convenience campaigns by Stonebridge Property Group. Stonebridge’s latest July National Portfolio features a valuable Brisbane-based 7-Eleven on a corner site in the Acacia Ridge industrial precinct and a prominent Melbourne Truck Stop secured by national tenants BP and KFC.
