This article is from the Australian Property Journal archive
A BP service station at Vermont South in Melbourne’s east has sold at auction for $5.36 million on a yield of 6.5%.
The property on a land area of 2,308 sqm and building area of 110 sqm at 549 Springvale Rd Vermont South was sold to a local investor by Ray White Commercial Glen Waverley’s Ryan Trickey on behalf of Pitcher Group Pty Ltd.
Trickey said the auction attracted more than 30 people with four bidders competing for the offering.
It was sold with a long-term lease and generating net rental income of approximately $350,000 p.a.
“Bidding opened at $4 million and rose in instalments of $100,000 and then $50,000 before a final increase of $10,000 secured a sale under the hammer. The three under bidders who are both local and international are still on the hunt for tenanted investment opportunities,” he added.
Trickey said one of the major points of the sale success was agents ensuring a full site Environmental Audit report was available so buyers could see all site details and do their due diligence then bid with confidence.
“We have found many agents of late have relied on a buoyant market to achieve results and have cut corners. They don’t want to ask the tough questions from vendors to ensure that any ‘would be’ issues are transparent and open to discussion. Doing so allow buyers to compare with other assets and bid to buy with confidence.” Trickey concluded.
Australian Property Journal
