Petrol station market pumping after trio of 7-Eleven deals
Investors continue to pump money into service stations, with a trio of 7-Eleven stores snapped up in recent days, and more assets set to be picked off in the coming weeks.
Petrol stations have been among the most sought-after commercial property classes over the past 12 months, with their long leases to national brands continuing to attract buyers.
In the most recent sale, a Melbourne-based farming family paid $5 million for a 7-Eleven at Sebastopol, near Ballarat, outbidding 16 other buyers for the 4216sqm property.
Commercial Insights: Subscribe to receive the latest news and updates
The property on the corner of Alfred and Hertford streets is leased to 7-Eleven on a 15-year term and traded on a sharp yield of 5.33%, with CBRE agents Justin Dowers, Joseph Du Rieu and Tom Tuxworth facilitating the deal.
Di Rieu says investors continue to grab at petrol stations as the next best option after being unable to snare a supermarket.
The Dinmore 7-Eleven, near Ipswich.
“Retail investors are continuing their flight to quality, defensive and non-discretionery assets. Convenience retail and fuel offer that opportunity for buyers in the sub-$10 million price bracket who may not otherwise have the capacity or ability to to secure a freestanding supermarket,” he says.
“The 5.33% yield achieved on the sale of Ballarat 7-Eleven highights that the retail investment market remains quite bullish, given that the cost of five-year money for investors is now over 5% in some instances.”
The growing Ipswich region also saw the sale of a 7-Eleven, with a large store at Dinmore trading for for $4.4 million immediately after auction, after being passed in.
The property is leased until 2031, with two further five-year options, and returns $329,600 annually.
The 7-Eleven at 581 Springvale Rd, Springvale South.
And in a further deal, a Melbourne investor swooped on a Springvale South 7-Eleven, shelling out $4.275 million to secure the property on a 5.3% yield.
The station, at 581 Springvale Rd, has 16 petrol bowsers as well as a convenience store, and was sold with a lease through to 2028 at an annual rent of $230,000, after an auction campaign through Teska Carson’s Matthew Feld and Michael Ludski.
A slew of other petrol stations are currently for sale, including three in Victoria – two BP outlets in Wollert and Cranbourne, and a United in Dandenong.
