Caltex to sell three inner-Sydney sites in huge portfolio

Caltex intends to sell three inner west service stations as part of a plan to offload 50 properties across Australia.

The sites that have come up for sale this week in Newtown, Concord West and Drummoyne, and are expected to appeal to mixed-use developers.

While price guides are yet to be finalised, experts believe that if sold in one line, the three petrol stations are likely to fetch more than $10 million.

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The decision to sell the properties, follows the company telling investors last month that it would sell 50 fuel outlets across Australia it had identified as having “higher value through alternative use”.

The Caltex at 26-36 Enmore Rd in Newtown for sale.

A Caltex spokesman told the Inner West Courier that the three separate sites at 26 Enmore, Newtown, 369-375 Concord Rd in Concord West and 191-195 Lyon Rd in Drummoyne, are worth more as apartments than as service stations.

“They have been identified as being able to deliver a higher value through alternative use — they are ideal for low to medium rise apartment development, located in attractive, high demand areas with strong growth opportunities,” the spokesman says.

Stonebridge Property Group director Lincoln Blackledge, who is selling the three sites with CBRE’s Mark Wizel and Julian White, says mixed-use developers are expected to be the key buyer demographic.

“These buyers know that it is rare to find well zoned sites in mature and tightly held suburbs like Newtown, Concord West and Drummoyne,” he says.

“For many buyers it will be about seizing a once in a generation opportunity like this.”

No. 191-195 Lyons Rd, Drummoyne.

All service stations will be remediated by Caltex as part of the sale in a bid to reduce environmental concerns.

Blackledge says developers who buy the properties will be able to earn income from day one as Caltex plans to lease the sites for an extended period.

“Caltex intends to occupy the properties through a licence agreement while they demolish and clean up the blocks,” he said.

“This will allow developers to earn an income while they get their plans approved by council.”

All properties are zoned for commercial purposes and have current building height limits ranging between 8.5m and 14m.

The service station at Concord West.

This generally limits development to projects such as multi-level apartment blocks or boarding houses with additions such as ground floor shops. The land size for the three blocks range between 971sqm in Newtown to 1709sqm in Concord West.

Blackledge says while the Enmore Rd property is smaller than the other two, he expects it to be highly sought after due to its location near Newtown train station and the King St intersection.

“I’ve had people ringing me for the past 10 years who want to the buy the site,” he says.

All three properties are for sale via an expressions of interest campaign until October 21.

This article from the Inner West Courier originally appeared as “Three inner west Caltex petrol stations for sale are set to be become apartment blocks”.