Torquay investment to headline next Portfolio Auction
A Victorian fuel retail and service centre with some of the industry’s strongest investment credentials will be the big ticket item at a major portfolio auction this month.
The Viva Energy service station and Mycar service centre sits at the gateway to one of Victoria’s biggest tourist meccas, has two of the world’s largest automotive operators as tenants and is set to ride a wave of demand for the asset class.
The freestanding property at 20 Winki Way in Torquay is tipped to fetch betweem $7-7.5 million at Burgess Rawson’s Investment Portfolio Auction on Wednesday, February 24.
And the asset is poised for further growth, with the Surf Coast experiencing a surge in population growth as new residents flood the region in the wake of COVID-19.
“Population growth for the area is second to none, as everyone is looking to work from home and make a permanent move to their holiday houses,” Burgess Rawson director Jamie Perlinger said.
“It really has changed this whole area, which was already booming but there’s been an even greater focus on it since the pandemic.”
Along with 10-year leases to Viva Energy and German-owned Continental AG/Mycar, with further options to 2049, the purchaser of the 4001sqm corner site will benefit from significant depreciation benefits on the 2019-built property, along with the 50% stamp duty savings now available on regional assets.
“On a property worth circa $7.5 million, those savings are likely to be around $200,000, which is an enormous bonus for the incoming owner,” Mr Perlinger said.
The site has an estimated net income of $408,840 per annum, which includes soon-to-be-completed restaurant The Diner.
Mr Perlinger said that in addition to the blue-chip tenancy profile, the property could not be better located.
“You’re next door to Aldi, you’re 200 metres from Bunnings and you’re in a key location for Torquay, being on the side of the road as you leave town, which is incredibly busy in the morning as workers and tradesmen drive to Geelong for work.”
“It’s a critical location for workers and tourists to fuel up, because there are no other service stations until you get into Geelong.”
Burgess Rawson’s first Investment Portfolio Auction of the year will be held at Crown Casino in Melbourne from 11am on Wednesday, February 24.