Investors descend on Manly as BP servo sells for $7.2m
A private investor has paid $7.2 million for a redeveloped service station just 180m from Manly beach – one of a number of big sales in the tourist hotspot.
The BP service station on the corner of Pittwater Rd and Pine St Manly came to market in mid March, has an annual income of at least $300,000 a year and a 12-year lease with the fuel giant Jasbe Petroleum.
Dylan McEvoy, of JLL, say the 1114sqm level site generated more than 200 inquiries showing strong demand for secure and defensive assets within tightly-held blue-ribbon locations like Manly.
The service station at 133-139 Pittwater Rd, Manly was completely redeveloped in 2019 and has new tanks, petrol bowsers, canopy, convenience store and forecourt with parking for nine vehicles.
Manly is a drawcard for commercial investors and they are spending even though many retail and food outlets cannot operate at the moment.
There is a new 12-year lease agreement with Jasbe Petroleum and with renewal options and fixed rental increases. Records show that the prominent site last traded in November 2009 for $2.09 million.
The store is leased to Victorian-based fuel and convenience company Jasbe Petroleum and is under a new lease agreement with renewal options and a net income of almost $300,000 per year.
Jasbe Petroleum own and manage more than 50 stores nationally under the BP brand.
JLL sales director Gordon McFadyen says, “The Manly precinct on Sydney’s exclusive Northern Beaches is tightly held and opportunities to acquire investment property in this area are limited.
Westpac bank on the Corso sold for more than $20m late last year.
“The incoming owner has a secure income stream with long term development upside and future capital growth. BP Manly is a resilient investment given its prominent location and long-term lease agreement,” McFadyen concluded.
Late last year a Sydney-based investor paid $20.2 million for the Westpac bank branch on The Corso in Manly.
The bank also had a lease until 2024 as well as four options each for five years. So it was possible the new owner has a blue-chip tenant until the year 2044.
At the time Patrick Kelleher, of Pine Property, said the sale was a good result and there was the potential to upsize and unlock some development potential on the site.
An investor paid $760,000 for a food outlet on The Corso that won’t be able to operate until after COVID-19 is over.
The latest commercial sale in Manly was mid March when a sushi bar restaurant in The Corso, behind Hungry Jacks, sold for $760,000. Vincent West, of Upstate, said the 106sqm shop at 13/74-78 The Corso had been empty for a while and an investor bought the first floor premises and would be looking for a tenant once retail could operate fully again.
West also has a vacant restaurant for sale at 4/93-95 North Steyne, Manly with an asking price of $3.15 million and the tenanted Manly Bakehouse with its wide frontage on The Corso which is for sale for $3.295 million and looking for an investor or occupier to purchase.
This article from the Manly Daily originally appeared as “Hundreds of inquiries for Manly service station: $7.2m sale”.
