Servo sells for nearly $5m
INTERSTATE property investors have continued to chase Toowoomba commercial real estate, with a private equity group snapping up a new service station for nearly $5 million.
The Melbourne-based investment company bought the 7-Eleven service station on the intersection of West and Stenner Sts in Darling Heights at an auction facilitated by Burgess Rawson last month.
The $4.935 million price tag still equated to six per cent annual yield on the 1700sq m property, something Burgess Rawson Brisbane associate director Doug Doyle said investors found desirable about Toowoomba.
“This is their first venture into Toowoomba,” he said.
“We’ve got a lot of investors interested in premium assets but wanting a better yield than what’s being offered in the capitals.
“Strong towns like Toowoomba and Ballarat are great economies and growing in population, so all the signs are there of a successful business.
“The long-term future is there, which is what the investors are wanting.
“Investors are looking to the stronger regional towns, and blue chip investments.”
Tenant 7-Eleven is still locked into a 15-year lease until 2032, with the new buyer expected to earn nearly $300,000 in rent per year.
Mr Doyle, who organised the sale in conjunction with BR Melbourne director Jamie
Perlinger, said investors were keen to invest in solid properties to make their money work harder.
“The southern investors are looking to Queensland for a slightly better return, and that will continue,” he said.
“We’re finding ourselves in an ideal selling market, where money is cheap, interest rates are down and investors are finding that extra money at auction.
“Their money is working for them a lot more, rather than just sitting in the bank.”
tom.gillespie@thechronicle.com.au