Self-funded retirees continue to snap up NSW 7-Elevens service stations, drawn by high yields
Ten NSW 7-Eleven service stations have 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%.
A 2,335-square-metre petrol station on the Princess Highway in Dapto near Wollongong, which returns annual rent of $320,000, sold with the top rental yield for this tranche of 7.75%.
The full list of NSW services stations is:
The latest group of NSW properties was 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.
All properties come with new 15-year leases to 7-Eleven with three further renewal options of five years each and 4% annual fixed rent increases. The tenant pays all outgoings except land tax.
“Over the past 12 months we have consistently achieved yields of between 6% and 7%, which is an indication of how stable these assets are,” says John Macree, NSW head of sales and investments at Jones Lang LaSalle.
Macree says retirees with self-managed super funds were again prominent buyers at what was a well-attended auction.
At least one NSW service station was sold to an interstate buyer.
To date, Macree says about 80% of the buyers at 7-Eleven auctions have been self-funded retirees.
“Of those, about half were investing through a self-managed super fund structure,” he says.
This is the second time in that past six months that 7-Eleven has achieved a 100% clearance rate at auction. The company sold 10 service stations in Sydney last November.
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