Written by Property Observer
Burgess Rawson sold seven Woolworths Caltex petrol stations last week for as $10.96 million total, but a similar portfolio of service stations two years ago sold at lower yields, averaging about 5.5%.
The slightly higher yields on the latest sales shows that the market has softened marginally, Burgess Rawson director Simon Staddon suggests.
Prices ranged between $1.1 million at Childers in Queensland to $2.15 million at Balwyn in Melbourne.
The yields ranged between Balwyn’s 5.49% to 6.73% in Childers.
They were offered with new full term 15-year leases with five renewal options of five years each to 2052. Rents will be reviewed annually in line with the consumer price index, up to a maximum of 4%. Burgess Rawson issued 160 contracts to interested parties.
The yields are similar to those for 7-Eleven stations that recently sold in NSW and Queensland.
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