Near-new Echuca service station sold for $7.5 million

A near-new petrol station in Echuca has sold for $7.5million on a 6.5% yield.

Property industry players Peter Spargo and Bill Guest were the vendors of the 161-189 Ogilvie Avenue property.

It is leased to United Petroleum and Hungry Jacks until 2028 with options to extend.

The site contains a 1,191 square metre building on a 5,240 square metre site.

Colliers International’s Daniel Wolman, Anthony Kirwan and Harry Bui in conjunction with Melcorp Commercial’s Paul Jones and Tim Spargo sold the property via an expression of interest campaign.

“The collaborative approach to the sales campaign for this regionally located property proved to be highly successful, with multiple offers received at the conclusion of the EOI process,” Wolman said.  

“The successful purchaser, a private investor from Victoria, acquired the property for $7.5million, a sale price which reflects a tight regional yield of 6.7%. 

“The sale, which has set a new benchmark for the local property market, is another sign that despite a reported cooling in market conditions and funding concerns, the market is still awash with cash buyers and is highly competitive.” 

Kirwan said buyers were increasingly looking for alternative investment options. 

“The major appeal of this asset was the high calibre tenant covenant, fixed income growth and the fact that having been so recently developed, an astute buyer could reap the rewards of newly constructed improvements and great depreciation benefits,” he said.