Second Dandenong South service station sells in as many months

A Dandenong South service station has traded – the second in two months.

The marketing agents aren’t disclosing the sale price of 260-262 Hammond.

Built in 2017 and with 13 years left of a lease to Shell, it includes a 227 square metre complex and sits on a 2222 sqm site with a diesel filling station at the south west corner of Kilkenny Street.

The rental agreement is unusual in that the occupier pays a year’s rent in advance – deposited, annually, as a lump sum.

Burgess Rawson’s Jamie Perlinger, Zomart He and Billy Holderhead with Cameron’s David Johnson promoted that the property is “in the heart of one of Australia’s most important industrial precincts”.

They added Dandenong South’s industrial, logistics and business park precinct has noted land value increases of up to 225 per cent since 2009.

Major occupiers in the area include Amazon, Australia Post, Nissan, Mondelez, Nissan, Star Track Express and Visy.

The property was to have formed part of Burgess Rawson’s 135th monthly portfolio auction event on April 1, which was cancelled last month following federal government social distancing laws.

Dandenong South is about 31 kilometres south east of the CBD accessed by major roads Eastlink, Peninsula Link, Monash Freeway and South Gippsland Freeway.

Another service station set for sale at this month’s portfolio auction, in Victoria’s coastal Rosebud, 50 kilometres south of Dandenong South, traded privately for $7.6 million – a 5.5 per cent yield.

By Marc Pallisco, realestatesource.com.au