Record Yields For Fuel Stations

Four  South Australian properties listed for sale at last week’s Burgess Rawson portfolio auction have sold under the hammer at yields as low as 3.79 per cent.

The $3.675 million sale of a Shell petrol station at Queenstown reflected the tightest of yields at 3.79 per cent, while a second Shell petrol station in Parafield Gardens sold for $3 million at a yield of 4.06 per cent.

An industrial property in Para Hills with a recently renewed eight-year lease to AMA Group sold for $5.38 million on a 4.08 per cent yield.

Finally, a recently refurbished property in Mount Gambier, anchored by major tenant ANZ, sold for $1.876 million, representing an 8.6 per cent yield.

The auction was held remotely, and in total 23 of 28 listed properties across the country sold for a combined value of $76.5 million.

Knight Frank held the three Adelaide-based metropolitan properties within the portfolio auction, and selling agent Oliver Totani said all three attracted strong interest from investors.

“The two service station results that were achieved represent record yields for the asset class,” he said.

“With limited supply on the market we expect this level of demand to remain for some time.”