Pumped-up interest for Townsville service station
A rare master plan service station site on the outskirts of Townsville is driving a “phenomenal” level of interest from investors.
Situated within The Village at Oonoonba, the site comprises 9345sqm of vacant land with development application approval for combined fuel and retail.
The site, on the corner of Abbott St and Lakeside Dr, is being marketed by Ray White Commercial via expressions of interest, ending on September 10.
Ray White Commercial director of commercial sales Mark Dann says they have already “had a phenomenal amount of interest in only a short period”, with interest from groups ranging from developers all the way to owner-operators.
Service station operators are in growth mode and across Australia demand is high
“With this site being on the master plan you also know that there is not going to be significant or unexpected competition in the future,” Dann says.
Commenced in 2011, The Village is located just 3.5km from the Townsville CBD and within 15 minutes of Townsville Airport, Townsville Hospital and James Cook University.
Hot property: $17.5 Bay Central sale boosts Hervey Bay market
Once completed, the 83-hectare site will comprise about 950 homes, of which 294 lots had been delivered by February, with an estimated 70,000 residents within the catchment area of the service station site.
The site is zoned and approved for both fuel and retail
Mr Dunn says service stations are continuing to be prove a highly sought after investments, with zoning for new sites uncommon.
James Crawford, director of investment sales at Colliers, says the market for service stations is very strong and usually resulted in rents of around $250,000 to $350,000 per annum, with tenancy agreements of about 15 years.
He says the majority of service stations sell on a yield of between 5.5% to 6.5%.
With this site being on the master plan you also know that there is not going to be significant or unexpected competition in the future
“Service station operators are in growth mode and across Australia demand is high. All operators are currently expanding and that ranges from small standalone service stations to those with small convenience or food attached to large trucking stops,” Mr Crawford said.
At a Burgess Rawson investment portfolio auction in early August, a Coles Express petrol station in Ayr, about 88km south of Townsville, which came with development approval for a fast food outlet, sold to a Sydney investors for $5.1 million.
Coles Express is understood to be paying $288,400 net per annum in rent for the 2015sqm property at 140-132 Edwards St, on the corner of the Bruce Highway, with fixed 3% annual rental increases.
The Coles Express sold at a yield of 5.65%.
But a Shell SPAR Express in Bundaberg was passed in at $4.525 million at the same auction.
The corner petrol station site at 15 Scotland St, which included a 378sqm SPAR convenience supermarket, is understood to bring in $337,459 per annum in rent.
The tenant has signed a 20-year lease up until 2032, with a fixed rental increase of 4% per year.
