It’s a Gas Gas Gas

Friday 27 March 2015

Written by Lisa Davis,Property Review Weekly

Burgess Rawson has kicked off its auction campaign for its 95th Investment Portfolio Auction with the release of seven prime petrol station investments anchored by Australia’s largest petrol retailers.

The auction will start at 11am at Crown Casino on Wednesday 15 April.

Of the 21 investment properties being offered at the auction, seven are leased to major high-profile fuel retailers, with four in Victoria, one in Western Australia and two in Queensland. Burgess Rawson’s Ben Appel, who is handling the sales with colleagues Jamie Perlinger and Raoul Holderhead, said that the significant scope for long-term land banking and future potential beyond the lifespan of the current petrol station use, combined with their large site areas, are expected to drive the interest in these sites.“The average lease term for these sites is 10-15 years. The retailers are often heavily invested in the development and infrastructure of these sites so they need to lock in long-term tenure to secure their ongoing investment,” Appel said.

Yields for petrol station investments have fallen in the last 12 to 18 months according to the agents, with results like the sale of Shell in Doncaster East for $9,055,000 reflecting a yield of 4.59 per cent, one of the sharpest ever seen for a petrol station investment.

More recently, the firm sold a new Woolworths petrol station in Joyner, Queensland, for $2.46 million on a yield of just 4.82 per cent. The site had a new 15-year ground lease and interest was strong from the outset with well over 200 enquires received and bidding from investors in three states.