Ayr’s Caledonian Hall returns to market for a second time this year
The historical site of the former Caledonian Hall is set to go under the hammer for a second time this year.
Currently, a Coles Express Service Station sits at the Edwards St location which will be auctioned at Burgess Rawson’s next Investment Portfolio Auction at Crown Casino on Wednesday, August 7.
The site was withdrawn from a previous auction in February this year.
Fuel assets are proving to be among the most sought-after commercial investments of 2019, with investors said to be returning to service stations in droves.
Another Coles Express service station at Ipswich sold during a previous Burgess Rawson Portfolio Auction amid heated competition after it received more than 130 pre-auction inquiries.
It sold on a yield of 5.34 per cent with unsuccessful buyers still on the lookout for similar opportunities.
Burgess Rawson’s Jamie Perlinger and Scott Meighan said the Ayr property could spark similar interest.
The agents are expecting a sale price of about $4.7 million.
Mr Perlinger said the Coles Express was built in 2014 so there are huge amounts of depreciation benefits for buyers.
The Edwards St service station has a prime position between both Coles and Woolworths supermarkets in Ayr.
Mr Perlinger said the lease structure for the 2015 sqm site adds significantly to its appeal.
“It’s a central retail location as well as potential upside should the new owner wish to investigate, with previous development approval granted for a fast food restaurant and drive-through to be built on-site,” he said.
“Service stations continue to find an audience with investors, and increasingly so in recent months. It’s the security of those long leases and prime land on which they sit that buyers keep coming back to.”
According to Corelogic, the site has been owned by four investors based in New South Wales since 2015 where it was purchased for more than $5 million from Ayr Development Pty Ltd. Before that it was owned by Coutts Pty Ltd in 1979 who purchased the then Caledonian Hall and traded as a supermarket.
The Burgess Rawson’s 130th Investment Portfolio Auction will be held at Crown Casino’s River Room at 11am Wednesday, August 7.
By News Corp Australia