Refurbished 7-Elevens service stations to tempt Sydney property investors with $150,000-plus rents

A new tranche of 10 refurbished Sydney 7-Eleven service stations and attached convenience stores have been listed for auction on September 25.

The combined retail and service stations have held strong appeal for commercial property investors with two tranches – one in Brisbane and one in Sydney – selling at auction earlier this year, with yields ranging betwen 5.6% and nearly 7.7%.

Last year more than $90 million worth of refurbished 7-Eleven service stations sold at auction in a similar yield range, with many snapped up by self-funded retirees.

As with previous batches, the 10 Sydney stores comes with new 15-year leases plus renewal options and guaranteed 4% annual fixed rent increases.

The highest-earning service station in the new batch is a 1,688-square-metre site at 336 Georges River Road in Croydon Park in Sydney’s west, which has an annual rental of $280,000.

The Roselands and West Ryde stations earn the lowest annual rent, at $150,000 per year each. 

Other 7-Eleven service stations are located at Berowra (the biggest site measuring 3,174 square metres), Bexley, Campbelltown, Glendale, Kirrawee, Rockdale, Roselands, Rozelle and West Ryde.

The marketing campaign is being handled by Jones Lang LaSalle agents John Macree , Jeff Moxham, Anthony Bray, Leslie Cheng and Michael Ajaka.

Interested buyers can register their details at a dedicated Jones Lang LaSalle site.

The most recent auction of 7-Elevens was a tranche of six in Queensland in April this year.

Five of the six sold at auction, with prices ranging from $1.5 million for a 2,365-square-metre 7-Eleven service station in the north Brisbane coastal suburb of Sandgate to $2.35 million paid for a 3,700-square-metre service station in Springwood, south of Brisbane.

Yields ranged from 5.67% to 7.73%, similar to the 5.75% to 7.7% yields achieved following the recent successful auction of 10 NSW 7-Elevens, where prices ranged from $2.2 million to $3.9 million.

In March 10  NSW 7-Eleven service stations sold at auction, with the assets again proving popular with retirees with self-managed super funds due to their high rental yields.

The 10 petrol stations sold in a price range from $2.2 million to $3.9 million, with yields ranging between 5.75% and 7.7% and an average yield of 6.81%.

The service stations are being sold as part of a sale program kicked off by 7-Eleven following its acquisition of 295 service stations from Mobil Retail in May 2010.

Since acquiring the Mobil business, 7-Eleven has been converting the Mobil stores into 7-Eleven service stations with attached convenience stores.