Hoppers Crossing 7-Eleven sells for $3.49 million, with nine bidders missing out
The Hoppers Crossing 7-Eleven service station sold at auction today for $3.49 million, the highest price achieved on a day when 12 out of the 13 sites sold.
There were about 10 bidders for the 5,575-square-metre Hoppers Crossing site on the corner of Old Geelong and Heaths Roads in a room packed with about 100 potential investors.
With guaranteed annual rent of $210,000, the property has a yield of 6%. It includes eight petrol bowsers and is three kilometres from Werribee Plaza and near Aldi, Woolworths and Target.
It was marketed by Jones Lang LaSalle agents Steve Bolton and Ben Galanos.
The remaining four service stations all sold for prices ranging from $1.685 million for the Bayswater site up to$2.92 million for the Brandon Park site, which was picked up by an Asian investor.
Earlier in the day seven out of the eight NSW offerings were sold to buyers with only the Narrabeen site at 1497 Pittwater Road passed in at $2.5 million. The highest price of $3.35 million was achieved for the 7,451 square metre Edensor Park site on the corner of Cowpasture and Elizabeth Roads at a yield of 7.34%.
All properties were sold with 15-years lease and renewal options of three five-year terms. The tenant pays all outgoings (except land tax), and rents will rise 4% every year.
Each includes a service station, convenience store and customer parking.
Ahead of the auction, prices were expected to range between $1.5 million and $4 million for the five in the Melbourne metropolitan area and eight stores in the Sydney metropolitan area.
Jones Lang LaSalle director David Bowden said earlier purchasers had been attracted by land rich investment properties in prime locations with secure long-term leases and fixed rental increases.
Interest in the retail sites has been high since Jones Lang LaSalle listed a second tranche of 15 refurbished stores were listed for sale on June 17 2011.
Two weeks ahead of the auction, private investors paid a premium for two in Victoria.
Two weeks ahead of the auction, private investors bought the Blackburn South premises and the Lilydale site.
The 2,738-square-metre Blackburn South site on Canterbury Road was offered with an annual rent commencing at $140,000. It sold pre-auction for $.183 million at a yield of 6.98%.
The 1,463-square-metre Lilydale site on the corner of Maroondah Highway and Cave Hill Road, bringing in $130,000 in annual rent sold for $1.52 million and a yield of 8.45%.
NSW | Site Area | Annual Rent | Sales price | Yield |
Artarmon, 477 Pacific Highway | 1,548sqm | $210,000 | $2.72 m | 6.91% |
Granville, Cnr Parramatta Road & Harbord Street | 1,499sqm | $200,000 | $2.56 m | 6.88% |
Lambton, 21 Croudace Street | 1,932sqm | $190,000 | $2.13 m | 8.53% |
Sth Strathfield, 577 Liverpool Road | 4,998sqm | $200,000 | $2.63 m | 5.91% |
Blaxland, 137 Great Western Highway | 1,809sqm | $190,000 | $2.25 m | 7.98% |
Kensington, Cnr Anzac Parade & Todman Ave | 1,429sqm | $150,000 | $2.4 m | 4.63% |
Edensor Park, Cnr Cowpasture & Elizabeth Roads | 7,451sqm | $260,000 | $3.35 m | 7.34% |
Narrabeen, 1497 Pittwater Road | 1,619 sqm | $270,000 | Passed in at $2.5 m |
|
Victoria | Site area | Annual rent | Sales price | Yield |
Bayswater East, Cnr Dorset Road & Mountain Hwy | 1,932sqm | $140,000 | $1.685 m | 8.31% |
Brandon Park, Cnr SPRINGVALE & Ferntree Gully Roads | 2,720sqm | $190,000 | $2.92 m | 6.51% |
Hoppers Crossing, Cnr Old Geelong & Heaths Rds | 5,575sqm | $210,000 | $3.49 m | 6.02% |
Epping, Cnr Dalton & Childs Roads | 5,204sqm | $150,000 | $2.21 m | 6.79% |
Tullamarine, Cnr Mickleham & Melrose Roads | 1,864sqm | $180,000 | $2.27 m | 7.93% |