This article is from the Australian Property Journal archive
AN off-market sale of a Lithgow 7-Eleven service station with a Zambrero outlet has concluded in one week, with the $10 million deal achieving a 4.92% yield.
Isaac Property offloaded the 2,632 sqm centre at 1129-1131 Great Western Hwy through JLL’s Dylan McEvoy and Gordon McFadyen.
The Central Tablelands property is part of a highway service centre site and is connected to the immediately adjoining McDonald’s restaurant with shared parking.
7-Eleven holds a 15-year lease and Zambrero holds a 10-year lease, generating net yearly income of $498,230.
According to the agents, the sale represents signifies “one of the sharpest yields achieved to date for a roadside service centre investment located in a regional location”.
“We fully expect this trend to continue into 2021 as private investors seek to secure passive, long-term investments as an alternative to cash in the current low yield environment,” McEvoy said.
Service stations have been a popular fixture of retail property portfolio auctions.
McFadyen said the sector has undergone significant yield compression in recent years and continues to strengthen as the sector demonstrates its resilience throughout the COVID-19 pandemic.
