Five out of six Queensland-based 7-Eleven service station sell as one further Melbourne store listed with $2.5 million hopes
Five out of six Queensland 7-Eleven service stations have sold at auction, continuing the strong appeal of the combination petrol station and retail store assets.
Prices ranged from $1.5 million for a 2,365-square-metre 7-Eleven service station in the north Brisbane coastal suburb of Sandgate to $2.35 million paid for a 3,700-square-metre service station in Springwood, south of Brisbane.
Yields ranged from 5.67% to 7.73%, similar to the 5.75% to 7.7% yields achieved following the recent successful auction of 10 NSW 7-Elevens, where prices ranged from $2.2 million to $3.9 million.
All Queensland properties sold with new 15-year leases with three options of five-year renewals and guaranteed 4% annual rent increases.
The Queensland properties were marketed by Sam Hatcher and Ben McGrath from Jones Lang LaSalle.
Two of the properties – Woodridge and Springwood – sold at below the estimated taxable land value.
McGrath says this means land tax might be a bit high on these two sites due to their large land area. The Woodridge site measures over 5,000 square metres and the Springwood site over 3,700 square metres – the two largest properties among the batch of six.
Figures released by the Queensland Valuer-General show that Logan City (where the Woodridge service station is located) has experienced an 8.9% decline in industrial land values to a median of $380,000 while industrial land values in the Scenic Rim Shire, where the Springwood service station is located, have increased by 11.1% to a median of $250,000.
Location | Address | Size | Annual Rent | Estimated rateable land value | Sale price | Yield |
Woodridge | 1 Kingston Road | 5,072 sqm | $136,000 | $2 million | $1.87m | 5.67% |
Springwood | 53 Springwood Road | 3,702 sqm | $170,000 | $2.4 million | $2.35m | 5.70% |
Marsden | 79 Chambers Flat Road | 3,500sqm | $170,000 | $1 million | $2.05 | 7.68% |
Sandgate | 86 Rainbow Street | 1,248sqm | $120,000 | $640,000 | $1.5m | 7.25% |
Strathpine | 273 Gympie Road | 2,365sqm | $175,000 | $920,000 | $2.23m | 7.73% |
Nambour | 922 Nambour Connection Road | 1,821sqm | $190,000 | $270,000 | Still available | -- |
Last year about $90 million worth of 7-Elevens were sold in and around Sydney and Melbourne.
Investors paid between$1.6 million for a 1,900-square-metre service station in Bayswater East in Melbourne up to $4.6 million for a 2,824-square-metre site in Turramurra in 2011.