High-profile service station development fuels interest

THE iconic Steele Rudd corner service station has hit the market with expectations that there will be some fierce competition from Australia’s service station developers in their endeavour to capitalise on one of the Darling Downs best service station development sites.

Situated on a 3480sq m site (and with more than 76 metres of New England Highway frontage), the popular service station, that has been in operation since 1957, is in need of an overhaul and the current demand in the Australian service station market will ensure that it will be a profitable undertaking for the purchaser.

Located between Toowoomba and Warwick, the site is currently owner-occupied and, after repeated efforts from hopeful developers knocking on the door, the current owners Grant and Cheryl Miller have appointed Colliers International to assist help them sell to the highest bidder.

"Our national team has seen in excess of 120 service station transactions occur in the last 12 months," Colliers Internationals premium investment executive Daniel Cullinane said.

"This makes up approximately $416 million in transaction volumes which equates to about 20 per cent of the Australian premium investment market," he said.

Mr Cullinane further commented that more recently a Caltex service station in Stanthorpe sold to an interstate investor for $1,405,000 (representing a 5.1 per cent passing yield).

"This was a brand-new asset with a 15-year lease that was acquired from an interstate investor, further demonstrating the current demand in the market," he added.

Following the recent publicity surrounding the infrastructure and economic boom, Colliers International Toowoomba’s Mike Turley is being overrun with inquiry from new entrants into the market.

"The Toowoomba region is currently subject to about 10 per cent of Queensland’s entire infrastructure spend and external developers, tenants and investors are starting to take notice," Mr Turley said.

"We simply cannot get enough quality stock to service the current demand," he added.

The Steele Rudd corner service station development site is for sale via Expressions of Interest closing at 3pm on Thursday, November 29.

For further information, contact Mike Turley on 0477 012 444 or Daniel Cullinane of Colliers International on 0431 278 806.