This article is from the Australian Property Journal archive
A SYDNEY-based Asian investor has purchased a Shell Coles Express service station in Kingsgrove hammer for $5.06 million on a tight 3.61% passing yield.
The 3,320sqm site at 137-139 Kingsgrove, in Sydney’s south, was sold with to a five-year lease to Viva Energy Australia Pty Ltd at an estimated net income of $183,022 per annum.
Savills agents Steven Lerche, Robert Lowe and Andrew Palmer marketed the property.
Palmer said the campaign generated more than 160 enquiries, with over 65 requests for the contract of sale prior to the auction.
He added that the property represented strategic, long-term buying in metropolitan Sydney with the bonus of future redevelopment potential.
“This was a great result for the vendor at a record-breaking yield, but not totally unexpected given the strong response to the campaign and what has been a surging market for service station investments nationally recently.
“The property’s future development potential was obviously also a consideration for those not simply looking for a passive investment and of course that swelled the ranks of potential buyers,” Palmer said.
Lowe said the competition from interested parties drove intense bidding among multiple buyers demonstrating the continued strength of Sydney’s commercial market.
Australian Property Journal
