Silkstone servo sells for whopping price at auction
The chattels of Coles Express, Silkstone sold for $3.756 million in a sale and lease back.
The property at 73 Blackstone Rd sold to a Perth investor and was part of $35 million worth of commercial real estate sold at a recent Burgess Rawson portfolio auction.
A Perth investor snapped up the auction’s trophy property, the service station, seeing the yield crunched to just 5.34 per cent.
The property had interest from all around the country, according to Burgess Rawson director Jamie Perlinger.
“We had bidding from Brisbane, Sydney, Perth and Melbourne,” he said.
“There’s definitely a good appetite for retain fuel sector, especially the locations of these things people are looking at. Not only the tenant and the rental income in the lease term, it’s really about the location of these lease sits which is paramount for the future.
Mr Perlinger said the property has a ready-made customer base, with Silkstone Village’s Coles supermarket and specialty retailers providing ready-made clientele.
It was one of the better investments on offer at the portfolio sale, he continued.
“Really strong bidding for it and it was well over reserve, there was a lot of competition for it.”
The lease on the site will continue on a 10-year agreement to June 2029, with options to 2049.
“You’ve got to go past this site in some capacity to get into the shopping centre,” he said.
“A lot of petrol station buyers look for busy corner sites like this, but with the shopping centre right there, this one’s on an entirely different level.”
Built in 2017, the station sits on a 1487sq m site. The initial net income was estimated at $200,000 per annum, with fixed three per cent annual increases and Coles paying all the usual outgoings.
“Being almost new, there are significant tax depreciation benefits, as well as the security of a long-term lease to Coles,” Mr Perlinger said.
Navarone Farrell, The Queensland Times