Private investors or a syndicate of private investors may be interested in a Woolworths Service Station and adjoining development site listed for sale and offering a potential yield of around 7.5%.
The Woolworths Service Station stands at 258 Beenleigh-Redland Bay Road in Cornubia, a busy road between the Gold Coast, 54 kilometres to the south and the Brisbane CBD, 32 kilometres to the north.
It stands on a 6,031-square-metre site, with the corner portion of the site available for further development.
The service station is branded ‘Caltex Woolworths’ – one of 550 such petrol outlets located around the country.
It is leased by Woolworths on a 20-year lease, which expires in 2022.
The site is zoned for residential use but according to the investment memorandum prepared by Jones Lang LaSalle, it could be developed as a retail outlet subject to planning approval from Logan City Council.
The property brings in current net income of around $249,555 per annum with CPI annual increases capped at 4%.
The property is being marketed for sale by private treaty by Sam Hatcher, manager of Queensland retail investments at Jones Lang LaSalle, who expects it to sell for around $3.4 million, representing a yield of around 7.5%.
Refurbished 7-Eleven petrol stations have proved popular investments for self-managed super funds and retirees, with dozens selling on strong yields over the past 18 months.
“Interest is expected from private investors with the opportunity to develop (subject to council approval) on the adjoining parcel,” says Hatcher.
“The opportunity also includes an adjoining site on the corner of Beenleigh-Redland Bay Road which could be used for future retail development (STCA).
“In addition, Fabcot Pty Ltd (Woolworths Development Company) have acquired a supermarket site approximately two kilometres from the service station further strengthening the desirability of this store to Woolworths Fuel,” says Hatcher.