Prime location, Caltex lease underpin value
A busy and fully-leased service station in a prime location in Perth’s blue chip industrial precinct is being brought to market through Colliers International, with fuel companies and investors expected to do battle over the sought-after asset.
Located on the corner of Bannister and Canvale Roads in Canning Vale, the 3,613sqm site is home to a Caltex service station and a lunch bar which services the surrounding industrial precinct.
The service station, which is fully leased to Caltex Petroleum Pty Ltd, sits on Canning Vale’s prime transport artery with approximately 25,000 vehicles using Bannister Road each day – something Colliers International’s Jeremy Parasiliti said underscored the value presented by the property.
“This property occupies a very high-profile position in a busy and high-traffic area, and is underpinned by a long-term lease to a blue chip global operator,” he said.
“Petrol stations as an asset class are very tightly-held, and it’s not often that they come to market – as a result, there is a huge level of demand when they do become available.”
Mr Parasiliti said the vendor of the property, a private investor, had invested a considerable amount of capital into the property in recent years.
Improvements included the addition of 24-hour diesel pumps to the rear of the site to accommodate the high volume of trucks and diesel vehicles servicing the Canning Vale industrial area, and refurbishments to the shop.
The property also afforded a strong and secure income stream, with current rental income at $289,056 per annum.
Mr Parasiliti said the scarcity of service station assets, together with the location and performance offered by the Bannister Road property, was expected to generate strong competitive tension among potential buyers.
“This asset will attract interest not only from astute investors, but also from competing fuel companies which are constantly actively seeking to secure sites like this one,” he said.
“We are anticipating fielding a very strong level of enquiry.”
The property at 60-62 Bannister Road, Canning Vale, is being offered for sale via an Expressions of Interest campaign closing at 4pm on June 18, 2015.