Melbourne 7-Eleven petrol stations fetch millions in major auction
Five 7-Eleven service stations across the capital have fetched more than $30 million in a major commercial property sell-off, in which a regional Woolies also earned an eight-figure sum.
More than $66 million worth of Victorian commercial property has sold in one day, with almost half of that pumped into 7-Eleven petrol stations across Melbourne.
The deals were done in commercial real estate firm Burgess Rawson’s most successful “portfolio auction” to date, in which $135.28 million worth of Australian property changed hands.
Almost $78 million of the sales involved 15 7-Eleven properties, including five in Melbourne worth $31.17 million.
A service station in Campbellfield, 16km north of the CBD, was the biggest 7-Eleven seller at $8.52 million, while one in outer western suburb Rockbank earned $6.8 million.
The other petrol station deals were in Croydon ($5.88 million), Ferntree Gully ($5.07 million) and Mornington ($4.9 million).
The bowsers won’t be closing at the quintet — each was offloaded with a sale-and-leaseback arrangement to 7-Eleven, with renewed 12-year leases in place.
Burgess Rawson director Billy Holderhead said he’d received 850 inquiries across the properties, as buyers recognised the “exceptionally rare opportunity”.
“Many sites also (offered) development potential or space to expand,” he said.
“In many cases, they were bought for less than what it would cost to replace them.”
Major fuel provider Caltex is also selling off seven Melbourne petrol stations to developers — but those businesses in Forest Hill, Box Hill, Brunswick East, Clayton, Frankston, Carnegie and Pascoe Vale will be closing as a result.
Prices for the properties individually are expected to be in the millions, with CBRE investments director Mark Wizel noting their real value was “the air rights above”.
“It’s most likely the sites will suit between 40 and 80 apartments,” he said.
Burgess Rawson’s sell-off last week also saw a Woolworths in regional Victorian city Seymour offloaded for a whopping $15.47 million.
The price was generated by 53 bids, and was almost four times what the vendors — two Melbourne families — paid for the 10,375sq m site in 1992.
Burgess Rawson’s Graeme Watson said Woolies and Coles supermarkets were “practically bulletproof investments”.
A Werribee property leased to First Choice Liquor Market attracted 26 bidders to fetch $7.75 million under the hammer, while a Cranbourne East childcare centre earned $4.56 million and the Pascoe Vale site of Bupa Dental group sold for $3.285 million.
Rounding out the Victorian sales were deals worth $1.52 million and $760,000 for Truganina buildings leased to car servicing business Ultra Tune and a dentist, $1.49 million for the Leongatha site of fund management company Gippsreal, and $850,000 for the Wangaratta site of Burson Auto Parts.
VICTORIAN PROPERTIES SOLD
-7-Eleven service stations in Campbellfield ($8.52m), Rockbank ($6.8m), Croydon ($5.88m), Ferntree Gully ($5.07m) and Mornington ($4.9m)
-Woolworths in Seymour ($15.42m)
-First Choice Liquor Market in Werribee ($7.75m)
-Bluebird Early Education in Cranbourne East ($4.56m)
-Bupa Dental Group in Pascoe Vale ($3.285m)
-Ultra Tune ($1.52m) and dentist ($760,000) buildings in Truganina
-Gippsreal in Leongatha ($1.49m)
-Burson Auto Parts in Wangaratta ($850,000)
National sales total: $135.28m