Randwick servo sets Sydney market alight
The sale of a Shell service station in Sydney’s inner east is the latest to highlight the pumped-up demand for fuel assets among commercial property investors.
The small servo at 43-47 Frenchmans Rd in Randwick recently sold for $8.25 million at a yield of 2.55% – understood to be the lowest recorded in Sydney in three years.
The buyer – a local investor – beat off competition from 13 other bidders to secure the 1245sqm property, which is leased to Viva Energy Australia and includes a Coles Express convenience store.
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Viva will tenant the site until at least March 2021, with further options to 2026.
The Shell service station is well-located in Randwick.
JLL’s Nic Simarro and Dylan McEvoy steered the auction campaign. Simarro says service stations in the right locations are clearly in vogue.
“The initial net yield of 2.55% is a record for Sydney metropolitan service stations in the past three years,” he says.
“The 2018 record was 4% for Shell Waterloo, which sold in November 2018 in a portfolio auction of four metropolitan Shell service stations.”
Positioned on the corner of Clovelly Rd and opposite Randwick’s main retail precinct, the station is is located 1.2km from the new light rail route and 2.2km from Clovelly Beach.
