Three Freestanding Viva Investments – Rare Triple Net Leases

Published on: 26/11/2020
Three Freestanding Viva Investments Rare Triple Net Leases

A rare portfolio of three Viva Energy Australia service stations across New South Wales and Queensland with options that run almost into next century will mark one of the last opportunities of the year for investors to tap into the booming asset class.

The trio of properties, on highly sought-after, long-term triple net leases, are set to be sold at Burgess Rawson’s final Investment Portfolio Auction of 2020 on December 8.

With all three returning annual rent of between $133,935 and $164,280, Burgess Rawson director Jamie Perlinger said the properties are not only some of the most in-demand across the commercial property industry, they are also some of the most affordable.

“It doesn’t get much better than retail fuel assets in the current market, and particularly ones of this calibre and price point,” Mr Perlinger said.

“All three properties feature leasing terms weighted heavily in favour of the landlord, with the tenant responsible for all rates, building insurance, public liability insurance, land tax, structural maintenance and repairs, as well as occupying strong positions in prime locations.”

The three assets are secured on 10-year triple net leases to 2026, plus seven further 10-year options to 2096 and with 3% annual rent increases.

The first of the Shell properties is in the heart of Maitland at 233 High Street on a strategic 1633sqm corner site that returns $164,280 in annual rent.

Opposite the new $10.5 million Maitland Regional Sports Complex and part of a commercial centre that includes a Woolworths, Kmart, Aldi and Bunnings, the property taps into the surrounding Hunter Valley region, which is considered Australia’s largest regional economy.

Also on the block is the Shell at 73 Pembroke Road in Minto, which comes to market amid a commercial property boom in Sydney’s western industrial region.

Located within 1km of Woolworths, Kmart, Aldi, KFC, McDonald’s, Hungry Jack’s, Minto train station and two schools, the property also services a major industrial precinct that is home to Visy, Unilever, CSR, Bluescope, Amart Furniture, Volvo, Komatsu, Breville and the Qube Internodal Shipping Terminal.

The gateway 1882sqm corner site enjoys 85 metres of combined street frontage within one of Sydney’s fastest growing urban corridors, and returns $133,935 annually.

The third property at 113 Cartwright Street in Ingham, Queensland, adjoins a McDonald’s drive-thru at a busy Bruce Highway intersection.

Positioned at the entrance to Ingham’s dominant shopping precinct, the service station has Woolworths, KFC, Toyota, Harvey Norman, Mitre 10, Domino’s, Goodyear and Ingham train station all within 300 metres, ensuring strong and consistent passing traffic.

Mr Perlinger said 2020 had seen fuel retail rise to the top among commercial property asset classes.

“Fuel retail has unquestionably been one of the star performers throughout the coronavirus pandemic. As an essential service their appeal as investments has never been higher, and particularly when they have exceptional leases in place like the three properties on offer at our auction.”

The three properties will be auctioned at Burgess Rawson’s Investment Portfolio Auction at 11am AEDT on Tuesday, December 8 in the Yallamundi Rooms at the Sydney Opera House.


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