High yields for 7-Elevens continue to attract investors
The appeal of 7-Eleven service stations has not diminished, with a Mount Druitt store in NSW selling for $4.04 million as part of a Burgess Rawson commercial property portfolio auction in Sydney yesterday.
The sale to a Victorian buyer was negotiated soon after the auction with the sale prices reflecting a yield of 7.8% on income of $316,000.
This is in the upper range of yields achieved for 7-Eleven service stations for 2011.
The 2,500-square-metre Mount Druitt store, located at 2 Luxford Road, was sold by a private investor and is not part of the portfolio being sold in batches by 7-Eleven and acquired from Mobil in May 2010.
It sold with a new 15-year lease that commences in January 2012 with two renewal options of five years each. It is leased to 7-Eleven with fixed 4% annual rent increases.
Charles Gonzalez from Burgess Rawson, which marketed and auctioned the 7-Eleven, says there was strong interest in the property at what was a well- attended auction.
Other properties to sell under the hammer include three retail shops in Cabramatta in Sydney’s west.
The property was bought by one of the tenants for $1.53 million, with Gonzales noting that this was $200,000 above the reserve.
With annual income of $161,000 this reflects a yield of 10.6%.
The property is leased to a pharmacy, doctor’s surgery and mini-supermarket.