INVESTOR JETS IN TO SNAP UP TASTY SERVO
A Caltex-anchored fuel and fast-food centre at Nerang proved too good to resist for a Sydney buyer who jumped straight on a plane to come and inspect the property
FAR from running on empty, pumped-up demand for Queensland’s fuel-based convenience retail properties is continuing to drive big investment deals in the asset class.
In a recently settled $7.5 million transaction, a Sydney private investor has swooped on an “as new” Gold Coast service station holding after jetting in to inspect the property.
The Caltex-anchored fuel and fast food centre at 2 Riverview Rd, Nerang, changed hands with a weighted lease expiry of 11-plus years on a net yield of 6.79 per cent. It is also occupied by a Zambrero drivethrough and Sunshine Kebabs outlet.
The property comprises 630sq m of building area on a 4555sq m site fronting Nerang-Broadbeach Rd, adjacent to an M1 motorway off-ramp.
Burgess Rawson’s Glenn Conridge, who negotiated the deal, said it reflected the fact there was still a strong investor appetite for fuelbased convenience retail properties.
“Particularly those assets with some form of drive-through food operator,” he said. “They see that as improving the offering and attracting a greater catchment of trade because there will be people who buy fuel and then go to the drive-through.
“The beauty of fuel assets also is that often they occupy significant, well-positioned land holdings with good access and there’s always a future purpose for those properties.”
Mr Conridge said the buyer of the Nerang property had missed out on two other properties and was so keen to secure the asset he “got straight on a plane” to come and inspect it.
He said the fact the centre was only two years old was a key drawcard as well as the location and head office company leases to Caltex Australia (15 years plus options to 2046), Zambrero (10 years plus options to 2036) and Sunshine Kebabs (5 years).
The asset generates a net rental income of $509,524 a year plus GST.
“It represented a very easily managed investment with the tenants paying all outgoings excluding land tax,” Mr Conridge said.
The service centre also has a neighbouring complex of more than 60 townhouses.