Five out of six Queensland-based 7-Eleven service station sell as one further Melbourne store listed with $2.5 million hopes

Larry SchlesingerDecember 8, 2020

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

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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.

 

 

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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