Hammer time on the North-West

The United service station at Wivenhoe and a key component of Devonport’s automotive precinct will be up for grabs at an auction next week.

No. 53 Don Road, Devonport, is leased to Burson Auto Parts and represents an “outstanding entry level” investment opportunity.

It is expected to attract investor interest of about $650,000.

Burgess Rawson director Shaun Venables said the property takes advantage of its location in what has become a “destination precinct” for Devonport.

He said Don Road at Devonport is a well-established commercial precinct home to automotive showrooms, car dealerships and auto retailers.

“This property, for that kind of money it’s a really neat and tidy asset. It presents really well,” Shaun said.

Meanwhile, No. 33 Main Road, Wivenhoe, is described as “one of the year’s most affordable commercial investment opportunities.”

Burgess Rawson agent Graeme Watson said the servo was tipped to attract bids of about $500,000.

It comes with a secure, new 10-year lease with locked-in compounded rental growth of 2 per cent per annum and two five-year options.

It has immediate exposure to the Bass Highway.

“The expected high yield, in the order of 10 per cent, compares favourably with current interest rates and presents an outstanding investment opportunity, especially for first-time buyers,” Graeme said.

“It is a long-established business positioned at the gateway to Burnie’s dominant industrial and commercial precinct.”

United Petroleum spent about $60,000 upgrading the facility to include high-flow diesel.

In addition, the current landlord recently spent $33,000 on a building maintenance upgrade.

Graeme said service station investments are proving popular due to long leases, key locations – generally on prime corner sites – and “certainty of rental growth”.

These North-West sites are heading to auction amid ongoing investor interest in Tasmania’s commercial property market.

There has been a string of standout results this year, including April’s collection of Tasmanian car dealerships, including one in Devonport, which were sold for a combined $30 million at auction.

“Tasmania continues to be a very good story, with investors actively seeking opportunities there,” Shaun said.

Written by Jarrad Bevan, The Mercury