WA Service stations with a combined value of nearly $20 million changed hands in the past two months in three sales brokered by Colliers International.
The service stations at Yanchep and Butler north of Perth and at Greenfields, a suburb of Mandurah south of Perth, have long leases to fuel companies and two also have leases to retailers on their sites.
The 7-Eleven service stations at 197 Landbeach Boulevard, Butler, which occupies a 3,395sqm site and 1 Eaglemont Street, Greenfields which has a 4,583sqm site, were sold by Blackmont Property to a Victorian-based fund manager.
The Greenfields service station, with a free-standing Muzz Buzz café, two separate retail tenancies and a weighted average lease expiry of 10.5 years, sold for $7,586,000 on a yield of 6.31 per cent.
The newly developed Butler service station which has a 13-year WALE and a serviced pad site for a future drive through coffee shop, sold for $5,227,000 on a yield of 6.04 per cent.
The two 7-Eleven service stations were sold off-market by Colliers International Head of Investment Services Wayne Lawrence who said there was still demand for quality service stations in good locations.
“The transactions demonstrate investor appetite for service stations despite cautions about the future of the asset class as electric vehicle makers push into the Australian market,” Mr Lawrence said.
The service station in Yanchep’s town centre was sold to a private investor for $6.83 million in February.
The recently built Yanchep service station sits on a 2,605sqm site on the corner of Marmion Avenue and Morwell Street and has a 12-year lease to Caltex Australian Petroleum.