Prime corner 7-Eleven on Penrith mega site

The consistent strength of Australia’s fuel convenience market has a 7-Eleven in one of Sydney’s most prominent growth areas primed for investment.

The 7-Eleven at 212-222 Andrews Road in Penrith will be sold at Burgess Rawson’s Investment Portfolio Auction event on Tuesday, October 27 amid investor demand for service stations.

The property is leased to 7-Eleven on a brand new 12-year net lease to 2032, with options to 2052 and $181,760 in annual rental returns.

But it’s the site’s enormous long-term value potential that is its biggest asset, according to Burgess Rawson director Jamie Perlinger, who is marketing the property with Rhys Parker, Billy Holderhead and Zomart He.

Occupying a 5,784sqm corner site at the gateway to the Castlereagh and Mulgoa Road large format retail precinct, Mr Perlinger said the site had the potential for multiple higher uses in future years.

“Its significant future potential comes back to the underlying land value and the ‘futureproofing’ of the site,” he said.

“In 20 or 30 years’ time these sites are going to be sought after for fast food or other types of developments, as they’re on high exposure, large corner sites of significance.”

Positioned closed to brands including Kennards, Volkswagen, Nissan, McDonald’s, Bunnings and Gyprock, the property has more than $700 million worth of recently or soon to be completed commercial and industrial developments within 400 metres.

With Penrith continuing to boom in popularity, the site’s potential catchment is expected to soar by 76% by 2036.

Perlinger said fuel and convenience assets continued to prove popular with investors amid significant unfulfilled demand in the market, following the sale of 33 service stations leased to 7-Eleven through Burgess Rawson in late 2019 and early 2020.

“Service stations have been sought after and continue to trade well throughout the pandemic, as people have been looking for safety in the investment market. Half of the enquiry on this property has been from buyers who showed interest or may have missed out during our other 7-Eleven campaigns,” he said.

“Convenience retail is only getting bigger and better and the overwhelming evidence is that the market is very keen to keep buying these properties.”

Burgess Rawson’s 140th Investment Portfolio Auction will be held in the Yallamundi Rooms at the Sydney Opera House from 11am AEDT on Tuesday, October 27.