Stonebridge has announced the sale of 13 freestanding investments as part of their October National Portfolio, sold via a combination of Expressions of Interest, Auction and Off-Market processes. Totalling in excess of $103 million, the transactions covered assets in the sought-after childcare, fast food, government, fuel & convenience and freestanding retail sectors.

The sale of an Ambulance station in Melbourne’s south eastern suburbs was the standout result for the portfolio. The property, located at 4 Huon Park Road, Cranbourne North, received 14 first round Expressions of Interest offers before top groups were invited to compete in a Boardroom Auction, where the asset transacted for a price of $3,607,000, reflecting a yield of 4.17%.

A Dan Murphy’s in Balwyn also showcased the significant demand for high profile tenanted assets, receiving eight first round offers culminating in four second round unconditional contracts. Offered with a 10 year lease to the ASX listed Endeavour Group, the property changed hands for price breaking local Building and Land Rate records in one of the largest strip retail transactions of the year.

Kevin Tong, Stonebridge Asia Practice Partner commented on the sales, “Both of these campaigns received exceptional enquiry, totalling more than 450 combined, with the properties attracting interest from local, interstate ad offshore investors. This culminated in 22 first offers across both assets before transacting to two first time Asian investors sourced via our Asia Practice team.”

In New South Wales and Queensland, a series of fuel and convenience retail sales have taken place, including a newly built Service Centre at Belmont, 20km south of Newcastle, leased to Metro Petroleum, Guzman y Gomez and Subway. The asset, set across a large 2,792sqm Pacific Highway fronting site, traded for $9,400,000, reflecting a 6.2% yield.

Further north in the regional Sunshine Coast location of Nambour, an Ampol & Zarrafas outlet positioned on a 6,318 sqm* gateway site just 350m* from the Bruce Highway on-ramp has sold. The property offered 12 and 10 year leases to the respective tenants and was purchased by a Sydney based private investor for $9,800,000. The other two fuel & convenience assets to exchange were a Viva Liberty leased asset in Brisbane’s northern suburb of Lawnton, selling for $7,100,000 at a yield of 6.44% and a longstanding Caltex service station at Wishart, Brisbane, which changed hands for $4,950,000 at a 6.31% yield.

Michael Collins, Stonebridge Partner said "the market is less concerned about the impact of EV’s on fuel sales coupled with a greater awareness and reliance on the importance of these sites as convenience retail locations, often on major arterial roads and corner locations, making shopping convenient and easy. This has driven a heightened level of transactions and stronger Buyer enquiry and positive sentiment towards this segment. Furthermore, the ‘smart money’ is looking to get the jump on the market as value increases are expected in these asset classes following predictions from the major Bank economists of interest rate reductions in 2025. This will see yields decreasing resulting in higher prices being paid for these assets through into the new year".

Headlining the childcare sector was the sale of a 64-place centre in Sydney’s West at Mount Druitt leased to Love of Learning. Located at 2-4 Kurrajong Avenue, the property sold for $5,500,000, reflecting a yield of 4.63%. In Melbourne, a premium childcare portfolio offering of three assets has sold for a total of $35,500,000, including Imagine Childcare Doncaster, Grow Early Education Heathmont, and Nido Avondale Heights. The assets were sold to interstate, offshore and local groups respectively for an average yield of 5.89%.

 
Also, in Mount Eliza a single shop fronted investment leased to Bank of Queensland sold for $2,450,000 on a tight 3.63% yield. Further, the off-market sales of two neighbouring regional car dealerships located in Traralgon, Victoria, have exchanged for a combined price of $11,000,000 (6.5% mixed yield) which closed out the October Portfolio results.

Rorey James, Stonebridge Partner commented – “Off the back of transacting $93.6 million in the previous August National Portfolio, to hit $103 million in sales for our October Portfolio is an exceptional sign for the national freestanding investment market. Investors continue to show significant demand for premium assets, driven largely by growing market sentiment and urgency to allocate capital prior to expected increased buyer competition in the first half of 2025.”