Lots 2, 3 & 4, 386&390 Nicholson,
Forrestdale, WA 6112

 16,518 SQUARE METRE DEVELOPMENT SITE
 2 STREET FRONTAGES – ARMADALE ROAD & NICHOLSON ROAD
 ZONED ‘LOCAL CENTRE’ - DEVELOPMENT POTENTIAL FOR NEW SERVICE STATION, SHOP, LIQUOR STORE, FAST FOOD & OTHER USES
 EXISTING LIQUOR STORE AND LICENCE
 HOLDING INCOME FROM EXISTING LEASES
 EXPRESSIONS OF INTEREST BY 30TH MAY 2008

LOCATION
This prime landholding is located in the southern locality of Forrestdale, situated approximately 23 kilometres south of the Perth CBD.

Specifically, the property is located at the north western corner of Nicholson Road and Armadale Road, Forrestdale.

Nicholson Road is a relatively busy road which travels north from the site to Thornlie through Canning Vale.

Armadale Road travels from the Kwinana Freeway to Alabany Highway, Armadale and has a high volume of traffic travelling in both east and west directions.

Main Roads Traffic Count details for Nicholson Road and Armadale Road are attached with this report. These counts show the hourly and daily traffic numbers for these locations close to the site.

SITE AREA
The property has an approximate frontage to Armadale Road of 134 metres and an approximate frontage to Nicholson Road of 138 square metres.

The 3 adjoining sites have a total area of 16,518 square metres as shown on the Certificates of Title attached with this report.

NB. The Water Corporation owns a section of land that travels diagonally across the site. The area of this section of land is approximately 3,609 square metres.

This land has potential to be used as either paved carparking or landscaping. We recommend that prospective purchaser make specific enquiries with regards to this directly with Water Corporation.

ZONING

The property is currently zoned “Local Centre” under the City of Armadale’s current Town Planning Scheme.

There is a Restricted Use noted on the property, which restricts certain uses which relate to the current service station that operates on the property.

A copy of the permitted uses and the Restricted Use which relates specifically to this site is attached with this report.

Refer to the attached extracts and tables from the City of Armadale Town Planning Scheme.

ROAD WIDENING
Part of Lot 2 and Lot 4 is designated as “Primary Regional Road” and the zoning plans show that some road widening at the corner and the Armadale Road frontage and on Nicholson Road may occur at some time in the future.

We recommend that potential purchasers make their own enquiries with Main Roads and the City of Armadale as to specific details regarding the road widening.

IMPROVEMENTS
There are 2 sets of buildings constructed on the site:

The “Peak” branded service station comprises a brick and metal roof constructed shop, with an adjoining steel frame and metal roof canopy covering 5 petrol pump stations. There is a freestanding diesel pump section close to the road intersection corner of the site. The service station section has a loose bluemetal hardstand area with access from both Armadale and Nicholson Roads.

The Liquor store and deli comprise a single building constructed with brick and metal roof, with bitumen paved parking area at the front and sides of this building.

The remainder of the site is vacant with no structural improvements.

LEASE DETAILS
The following lease details, as advised by the Registered Proprietors and the property managers relate to the property:

Peak Petroleum – currently on a monthly lease, paying approximately $5,423.51 per month including GST, which is $57,201 per annum plus Variable Outgoings and Excluding GST.

Liquor Store – leased for approximately 10 years (expiring 2013) and currently paying approximately $37,384 per annum plus Variable Outgoings and Excluding GST.

Deli / Shop - leased until 2013 and currently paying approximately $38,807 per annum plus Variable Outgoings and Excluding GST.

The current total approximate net income for the property is $133,392 per annum plus Variable Outgoings and Excluding GST.

Nb. The lessees of the Liquor Store have a 1st right to purchase Lot 3 of the property, where they have 14 days to accept the offer from the owner to buy this section of land. If they choose not to purchase at the asking price, the owner, should he agree to sell the property to another party at a lower price, is obligated to go back to the lessees and offer the lower price, where they have 7 days to accept or decline to purchase.

DEVELOPMENT POTENTIAL
Service Station:

The current Peak Service Station is on a monthly lease; however the owners of Peak / Gull (White Gum Pty. Ltd.) have indicated they would be prepared to enter into a new lease on the following basis:

Without prejudice to its rights, White Gum would consider;

1) The Lessor construct a new service station to the preferred design within the next 3 years but the sooner the better at a cost of approximately $3M in 2009 costs.
2) White Gum to relinquish its existing Lease when the new site is able to trade.
3) New Lease term of 15 years with an option of 10 years and a further option of 5 years.
4) A starting rent of $450,000 per year with CPI annual adjustments.
5) A review to market rent every 5 years.

A Development Application for this new truck stop style service station was submitted with the City of Armadale in November 2007.


Liquor Store:

The current lessee’s have verbally advised that they would like to see their premises expanded to approximately 500 square metres. Their current lease does not expire until April 2013 therefore negotiation would be necessary to determine a suitable and mutually agreeable lease / tenancy structure.

For more information, please contact the exclusive agents:
SIMON GILL 0402 338 447
Email: simong@rfre.com.au
or
PAUL FARRIS 0424 888 778
Email: paulf@rfre.com.au