This article is from the Australian Property Journal archive
A LOCAL investor has snapped up a 7-Eleven site in northern Brisbane for $7.6 million, on a benchmark yield for the sunshine state.
The Virginia site at 2009 Sandgate Road spans 2,843 sqm site with exposure to the major six-lane Sandgate Road carriageway, which is exposed to over 44,000 passing vehicles daily. It is the only inbound service station for 7.5 kilometres.
Built in 2016, the property is leased until 2031 returning annual rent of $390,778 with 3.75% fixed annual increases.
The property was marketed as part of Cushman & Wakefield’s national investment sales portfolio, and was sold by Michael Collins and Tom Moreland who said the 5.14% yield is a record for a freestanding 7-Eleven in Queensland.
“Long-term leased investments such as this remain highly sought after, particularly those with favourable annual rent increase structures,” Collins said.
“This, coupled with the asset’s prime metro location along well-known Sandgate Road garnered a lot of interest by the high net worth investor community. The market remains as hot as it’s ever been in our segment of the market.”
Moreland said the fuel and convenience retail continues to stand out in the alternative asset class, while the non-discretionary nature of the tenant’s business is particularly attractive in the COVID environment, as service stations continue to trade throughout each stage of lockdown.
“We expect to see the high level of demand continue as long as interest rates remain at record low levels,” he said.
