Melbourne service stations to pump buyer demand

Strengthening demand for freestanding retail investment assets has spurred the listing of two prominent Melbourne service stations.

On offer are a Caltex service station in the western suburb of Altona Meadows, together with a combined BP petrol station and car wash in Blackburn.

The 2-6 Central Avenue Caltex station is set on a 2,383sqm site, and benefits from a corner location and strong tenancy profile which includes Woolworths Limited.

The property, which is expected to sell in excess of $5 million, benefits from a strong trading history, having operated as a service station for more than 25 years.

CBRE Victorian Retail Investments has been appointed to sell the assets.

“Being the only Woolworths Caltex service station in an eight kilometre radius, this property represents an outstanding opportunity to acquire a secure investment with potential for capital return,” said Justin Dowers, one of the listing agents.

The BP service station offered for sale is at 233-243 Whitehorse Road, in the heart of Blackburn’s commercial hub, and close to national retailers such as Bunnings, Officeworks, Supercheap Auto and Brandsmart.

The property has three street frontages and a 7.6 year WALE (weighted average lease expiry) provides steady income.

CBRE's Joseph Du Rieu said the underlying land holding and tightly held nature of Whitehorse Road would be likely to generate buyer interest around the $8 million mark.

“Given the current buyer market environment we expect strong interest from local and offshore groups as evidenced by the recent sales of Petbarn on Whitehorse Road and Officeworks, Vermont South, with both assets reflecting initial yields of less than 5%,” he said.

Caltex Altona Meadows is being sold through a public expression of interest closing March 17, while BP Blackburn will be auctioned on the same day.