NSW 7-Eleven service stations expected to garner strong investor interest

Investor interest is likely to be high for the latest group of 7-Eleven service stations, which will go to auction on March 22.

Ten service stations will go under the hammer in NSW ranging in size from just 955 square metres for a West Pennant Hills service station to South Windsor property measuring 4.7 hectares (by the far the biggest to be sold to date), in the Hawkesbury municipality.

Initial annual rentals for the 10 service stations range from $160,000 to $320,000 with a guaranteed 4% annual rent increase.

The stores are part of the 250 retail sites acquired by 7-Eleven following its $61.1 million acquisition from Mobil Retail in May 2010. Each includes a service station, convenience store and customer parking

The South Windsor property is located close to the Bligh Park shopping centre and on the major access path to the Windsor town centre and Penrith. 

The 4,465-square-metre Bankstown service station has the highest annual rental of $320,000. It is located close to the main commercial and retail centre approximately 16 kilometres from the Sydney CBD.

The full list of NSW services stations is:

All properties come with new 15-year leases, with three further renewal options of five years each and 4% annual fixed rent increases. The tenant pays all outgoings except land tax.

The 4,549-square metre Burwood service station sits on the most valuable land – estimated at $4 million – and has the highest estimated 2011 land tax bill of $64,000.

The 2,335-square-metre Dapto property is valued at $400,000 and has an estimated land tax bill of just $164.

The properties are being marketed by John Macree from Jones Lang LaSalle, who led the 2011 NSW campaign, which culminated in 10 sales of 7-Elevens at auction.

Macree could not provide a price guide, but says the 2010 sales results “may be useful as a guide”.

“Buyer appetite for these passive investments secured by long-term leases remains strong,” he says.

Last year commercial property investors snapped up more than $90 million worth of refurbished 7-Eleven service stations across NSW and Victoria with prices ranging from $1.6 million for a 1,900-square-metre service station in Bayswater East in Melbourne to up to $4.6 million for a 2,824-square-metre site in Turramurra.

A further six Queensland 7-Elevens are to be sold by Jones Lang LaSalle’s Ben McGrath.