7-Eleven servos being snapped up

With 7-Eleven service centres taking over the role of the traditional corner store, commercial agents say its no wonder they’re viewed as solid investment choices for buyers keen to “set and forget”. The 7-Eleven service station in Stewart Street, Bathurst, is just about to hit the market with Burgess Rawson – with Sydney-based selling agent Yosh Mendis expecting strong interest as people increasingly rely on convenience stores for their shopping basics. “7-Elevens are considered secure, stable income streams underpinned by essential services so investors see them as very secure assets in comparison to other investment vehicles like equities and the stock market,” Mr Mendis said.

In May Burgess Rawson – Sydney sold the 7-Eleven on Molong Road, Orange, for $6.1 million with a return of 5.57 per cent. According to Rhys Parker, who was the selling agent on the Orange property, the combined offering of fuel and convenience store proved a winning formula.

“People pick up groceries on the way home and you can also hire a trailer, use theA TM, get a hot cup of coffee or a slurpy – there is such a varied offering,” he said.

“They’re also usually in really high-profile locations with brilliant access and long-trading hours.”

Mr Parker said the Central West is also popular with buyers.

“The Central West is highly regarded by private investors in major capital cities like Sydney, Brisbane and Melbourne and further afield, even overseas,” he said.

“In places like Bathurst and Orange, with their strong underlying diversified economies, investors really appreciate how buoyant those markets are and are keen to own real estate in those centres for those reasons.

“The 7-Elevens also have really landlord-friendly lease terms, these are as close to set and forget opportunities as you can get. They are things people would be proud to own in locations where people understand why they are so strong economically.”

According to JLL’s director Dylan McEvoy, who has sold 7-Elevens in Kelso and Lithgow in the past two years, the long-term lease structure and the fixed rental growth appeals to those hoping to invest in commercial property in growth regions such as the Central West.

“Often these assets are situated in strategic locations along major highway corridors allowing investors to landbank these locations for future re-adaptive use whilst maintain a robust rental return with fixed increases,” Mr McEvoy said.

Mr McEvoy said the regional areas continue to be popular with investors. “The Central West Tablelands is a sought after location by local and Sydney-based investors,” he said.