Servo sales fuel investor confidence

Monday 13 May 2019

Two service stations in East Albury and Jindera sold last week for a combined $7.2 million.

A BP branded service station next door to a McDonalds and opposite a Bunnings sold for $4.2 million and a 1366 sqm site leased to Westside Petroleum sold for $3 million.

The two businesses were sold by agents Burgess Rawson after its latest investment portfolio auction held in Melbourne last month to underly the continues investor demand for well-located petrol stations.

They were purchased by separate Melbourne-based investors with yields of 7.19 per cent respectively.

The service station in Drome Street was a former carwash and redeveloped by Albury developer Travis Barker, who had sold it to a Melbourne buyer before the property was sold again last week.

It has a 15-year lease to BP and returns more than $302,000 in annual rent.

Mr Barker recently gained development approval from Albury Council for a $17 million apartment complex in central Albury on the former Hungry Jack’s fast food restaurant site known as the Hamilton.

He also recently developed a service station at the entrance to the Corowa sale-yards complex.

The Jindera service station has a Shell branding and presently returns $238,702 in annual rent.

It is leased to Westside, which is 50 per cent owned by Australia’s largest fuel retailer Viva Energy until 2028, with a further 10 years of options.

Meanwhile, Burgess Rawson will auction the Dahlsens trade centre at Deniliquin on May 15.

The standalone property at 205-207 Barham Road, which has been occupied by Dahlsens for 27 years, has a secure 10-year lease, plus options to 2033.

It returns $92,472 per annum with annual rent reviews and is expected to sell for between $900,000 and $950,000.

Dahlsens has a presence in Albury in the airport estate and up until 2013 also had a store in Wodonga.

The company which had its origins in East Gippsland arrived on the border in 1994 with the purchase of
Wodonga Timber and Hardware.

To find out more about the properties in our portfolio, and how we can help you with sales, leasing and property management services, please contact us.

Written by David Johnston, Border Mail