This article is from the Australian Property Journal archive
7-Eleven has reaped $78 million from the sale of 15 service stations in a huge portfolio auction held across Sydney and Melbourne yesterday, which netted more than $115 million across the offerings.
The first tranche of nine 7-Eleven stores, located across NSW and the ACT, were auctioned in Sydney, and a group of Victorian and one Western Australian location went under the hammer at Crown Casino, as well as a 14 further properties for a clearance rate of 79%.
Two further assets, a Bluebird Early Education childcare centre at 2 Chapelton Rd in Cranbourne and another childcare centre at 83-85 Grange Rd in Welland, South Australia, sold prior to auction day for $4.65 million and $5.6 million, taking the total figure traded to nearly $125.6 million.
Also selling under the hammer at the Burgess Rawson event was a freestanding Woolworths supermarket in the Victorian town of Seymour. On a 10,375 sqm of land, the 4,650 sqm store pays a net annual income of $800,000.
7-Eleven is hoping to free up capital that it can put towards adding 30 new stores to its total of 700 nationally, while it has plans to upgrade 293, introduce parcel locker services at 400, and improve fuel infrastructure at 13.
The convenience store giant’s offering followed Caltex putting 25 service station and convenience store properties to the market, as it moves ahead with plans to offload at least 50 freehold sites across the country that it believes offer best use as residential redevelopments.
Caltex announced the portfolio sale after booking a $54 million hit to its interim profit, and publicly stepped back from its earnings promise of $120 million and $150 million by 2024, given difficult economic conditions.
There may be yet more service stations to hit the market. Of its 790 company-owned and operated petrol stations, Caltex will keep 500, but another 240 sites are yet to be reviewed.
Each of the 7-Eleven assets offered as part of the portfolio were offered with new 12 year net leases plus options. The largest price tag was generated by 1603 Sydney Rd in Melbourne’s Campbellfield, of $8.2 million, which includes a sub-lease to McDonald’s and an annual rent of $395,193. That was followed by a Braddon site in the Canberra at 20 Mort St, opposite the Canberra Centre, Telstra headquarters and multiple government departments for $7.1 million, returning $291,997 annually.
In Rockbank, 1593 Western Hwy sold for $6.8 million with an annual return of $328,983, while 339 Dorset Rd fetched $5.88 million with a $366,996 annual rent, and 324 The Broadway in Perth’s Ellenbrook for $6.14 million, bringing $370,989 each year.
Other 7-Eleven sites to sell were:
- 95 Elizabeth Dr, Liverpool, NSW for $5.75 million, returning $255,794 annually
- 13 Parramatta Rd, Clyde NSW for $3.925 million, $170,331
- 151 Prospect Hwy, Seven Hills NSW for $3.705 million, $147,215
- 104 Great Western Hwy, Colyton NSW for $3.355 million, $158,165
- 3 Metella Rd, Toongabbie, NSW for $2.985 million, $148,432
- 2 Christie St, St Marys, NSW for $5.010 million, $243,817
- 88 Hardwick Cr, Holt, ACT for $4.795 million, $243,331
- 772 Pacific Hwy, Marks Point, NSW for $4 million, $243,441
- 893 Nepean Hwy, Mornington, VIC for $4.9 million, $209,264
- 844 Burwood Hwy, Ferntree Gully, VIC for $5.070 million, $249,414
A mixed bag of assets traded throughout the remainder of the auction. They included a Chapel Hill Green Leaves Early Learning childcare centre at 11-15 Moordale St in Brisbane for $7.66 million, returning a net annual rent of $437,720 plus GST.
Another Queensland property, a KFC at 51-57 Hospital Rd in Emerald sold traded for $2.2 million with a yearly net income of $108,638.
In Melbourne’s Truganina, a dental clinic at T7/451 Leakes Rd sold for $760,000, bringing a net yearly income of $42,720 plus GST, and the Ultra Tune at Lot F/451 Leakes Rd fetched $1.52 million, and returns a yearly rent of $87,550 plus GST.
The Burson Auto Parts warehouse at 62 Tone Rd in Wangaratta sold for $850,000, and the offices of funds manager Gippsreal at 41 McCartin St in Leongatha traded for $1.49 million.
