A Sydney based private Asian investor has paid $5.06 million on an aggressive 3.61 percent passing yield for a service station at Kingsgrove.
A Sydney based private Asian investor has paid $5.06 million on an aggressive 3.61 percent passing yield for a Shell-Coles Express service station property at Kingsgrove at a hotly contested auction conducted by Savills.
According to Savills Director Retail Investments, Steven Lerche, who managed the campaign with Robert Lowe and Andrew Palmer, the property was sold subject to a five year lease to Viva Energy Australia Pty Ltd at an estimated net income of $183,022 per annum.
Mr Palmer said Savills had run a very well-orchestrated marketing campaign, generating in excess of 160 enquiries, with over 65 requests for the contract of sale prior to the auction.
He said the 137-139 Kingsgrove Road property represented strategic, long-term buying in metropolitan Sydney with the bonus of future redevelopment potential.
“This was a great result for the vendor at a record breaking yield but not totally unexpected given the strong response to the campaign and what has been a surging market for service station investments nationally recently.
“The property’s future development potential was obviously also a consideration for those not simply looking for a passive investment and of course that swelled the ranks of potential buyers,” Mr Palmer said.
The 3,320 square metre site, which includes a portion of undeveloped land, is located at the prime intersection of Kingsgrove and St Albans roads, boasts a combined 122 metres street frontage, and is only 600 metres north of the M5 East.
Mr Lowe said the competition from interested parties drove intense bidding among multiple buyers demonstrating the continued strength of Sydney’s commercial market.
“This was a rare opportunity in a great location with strong upside and the market’s response and the price reflected that,” he said.
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