Movement at stations
TWO key service stations in Cairns have changed owners in multi-million-dollar purchases as a third goes up for demolition.
APN Convenience Retail REIT (AQR) has snapped up three servo centres in Queensland for $27.5m, including one in Cairns for $6.6m.
CBRE’s Michael Hedger and Joe Tynan negotiated the sale of Coles Express Cairns at 79-89 Mulgrave Road, Parramatta
Park, along with Coles Express sites at Acacia Ridge and Moorooka from Brisbane-based developer Denmac Nominees.
The three sites were built between mid-2016 and the end of 2017, with over 90 per cent of the income derived from major tenants Viva Energy Australia (representing 65 per cent of the income), Krispy Creme (10 per cent), global pressure wash manufacturer Karcher (9 per cent) and Gloria Jeans (7 per cent).
The remainder of the rent is derived from local convenience retailers, with the Cairns portfolio having an average lease expiry of 10.46 years.
CBRE communications director Kathryn House said the Cairns Coles Express had an initial yield of 6.99 per cent, with the potential to rise in value over the coming lease period.
AQR fund manager Chris Brockett said they were thrilled with the acquisition of the three sites.
“These properties are outstanding examples of well-located, designed and built service stations and convenience retail centres, with a great mix of national and local retailers,” he said,
Another prime service station site in Cairns has sold for $2.65m.
Queensland Off Market Group business director Chris Cameron said the Caltex at Mulgrave Road, Woree had sold after having been tightly held by a local family for more than 20 years.
“The high-quality commercial site included a major branded Caltex service station as the key tenant and a second tenancy of a local Kumho Tyre franchise,’’ he said.
The site was purchased by another local family looking to further consolidate their commercial holdings in Cairns.
Sold in conjunction with local Knight Frank sales executive Rob McFarlane, the property generated net rent of approximately $200,000 and passive investment return of approximately 7 to 7.5 per cent per annum.
“Overall this was a great buy, with all parties pleased with the outcome,” Mr Cameron said.
The former Mobil service station on Sheridan Street at Cairns North is currently planned for demolition.
Demolition has started on the buildings on site and black hoardings have gone up.
Site owner Dean Pradal said there were no further plans for the site and declined to comment further.