Freedom Petrol station in Redbank Plains sold under the hammer at the Colliers International auction for $3,950,000 to a Newcastle based private investor. The property located at 181 Kruger Parade was sold on behalf of syndicator, OzProp Pty Ltd.
Richard Blanch and Hunter Higgins of Colliers International marketed the property via an auction campaign which attracted over 60 enquiries from both local and interstate parties.
“Competitive bidding on the day quickly got to the reserve price that vendor was happy with and in the end the asset was secured by a Newcastle based investor for $3.95m.
“The property was hotly contested due to its 15 year term lease agreement with Freedom Fuels, a subsidiary of multi-billion dollar Japanese company, Idemitsu Kosan. The lease expires in 2029.
“Fuel companies sign secure, long term leases and cover a lot of the overheads, making them attractive to private investors looking for a long term passive investment.
“The strength of the market is apparent, with demand coming from local and interstate parties, particularly for properties such as this with long term lease in place to a high profile tenant. A lot of interstate private investors see Queensland very attractive with comparatively softer yields to Sydney and Melbourne,” said Mr Blanch.
According to Mr Higgins there are greater depth of purchasers in the market currently looking for further opportunities which is having a positive influence on sharpening yields in Queensland.
“In line with population growth and new developments in South East Queensland we also see growth in number of new petrol stations. Fuel providers are looking for high residential growth areas or areas that have gone through recent planning changes that facilitate growth.
“According to Cordells there are over 100 potential new or redeveloped service stations around Queensland that have been recently delivered or are in planning and development stage. Leading the pack in terms of new sites are 7-Eleven, Puma, Caltex and Viva energy (Shell).”