Fill ’er up: Burleigh service station a rare opportunity for investors

This service station at 9-15 Tallebudgera Creek Rd, Burleigh Heads, is up for auction

A service station in popular Burleigh Heads has hit the market offering investors a rare commercial opportunity.

Owned by the Lowe family, who founded Independent Fuel Suppliers before it was sold to Caltex, the service station was recently rebranded as Ampol, with the tenant being in situ since 2006.

Service stations are an investor’s heaven.

Located on a busy intersection at 9-15 Tallebudgera Creek Road, the 3,345sq m site includes retail space and has a secured five-year lease as of December 2021, with the rent paid in advance.

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It is currently bringing in $481,000 annually in net income, excluding land tax.

Steven King of Colliers, which is marketing the property in conjunction with Clark Property Partners, said service stations were exactly the type of property that investors were looking for because of the security and future land potential.

Burleigh Heads is a sought-after spot for commercial investments.

Mr King said the site had been tightly held by its owners and was expected to attract widespread interest.

“This ticks all the boxes for investors – it’s safe, secure and comes with the backing of an international company,” he said.

“And Burleigh Heads is commercially one of the hottest precincts on the Gold Coast.”

Although only on the market for 24 hours, Mr King said initial inquiry had been strong.

Mr King said the position of the asset would ensure its success for years to come.

According to Herron Todd White’s latest Month in Review report, service stations remain one of the most desirable commercial investment classes, yet the volume of sales across the Gold Coast is relatively low.

The station is on a prime piece of real estate in Burleigh and has asecured tenant for five years.

The Burleigh Heads service station is the only business of its kind currently for sale on the Coast.

It will be auctioned on March 10 at 11am.

Mr King recently sold a BP service station on Southport Nerang Road in Molendinar, which was also owned by the Lowe family, for $8.7 million.

Clark Property Partners managing director Steve Clark said service stations were one of the few asset classes that were pandemic proof.

“We’ve seen tight yields for petrol station sales on the Gold Coast as well as nationally,” Mr Clark said.

“In 2021 we sold a service station at 519 Olsen Avenue to an owner-occupier with the sale representing a 5 per cent net yield based on market rents and required capital expenditure.

“We expect that trend to continue this year as demand outweighs supply. Industry sources expect fuel volumes to remain high for at least another 15 to 20 years, despite the emergence of electric vehicles.”