Service station in NSW's Goulburn sells on strong yield of 5 percent at Burgess Rawson auction

A new fast food and Caltex service station in NSW’s Goulburn with long leases to Woolworths and Red Rooster fetched $4,530,000 at Burgess Rawson’s portfolio auction.

The yield on the sale was a strong 5.06 percent. It was sold to a Chinese investor with settlement yet to be registered.

The 180 Hume Street property is on a large 4,317 sqm corner site surrounded by Bunnings, McDonald’s, Subway and Shell.

There is a 15 year lease to Woolworths that started in 2017 and has options till 2052. 

Fast-food chain Red Rooster is on a 10 year leases that started in 2017 and has options till 2047.

It is opposite the “Big Merino” tourist pit-stop landmark.

The development was completed in 2017 and comes with depreciation benefits.

The total net income from the property is $229,073 pa + GST.qm.

The selling agents were Simon Staddon and Darren Beehag at auction in June this year.

Back in 2013, a local investor Rodney Thompson had bought the site for just over $1 million, and over the past four years he redeveloped it into a Red Rooster outlet and Woolworths Caltex service station, according to the Goulburn Post.