Gladstone servo sells for close to $6m
ONE of Gladstone’s most premium commercial properties sold at auction this week for a whopping $5.68 million to a Sunshine Coast-based investor.
When the United Service Station on Hanson Road went under the hammer at Burgess Rawson’s auction on Tuesday, it attracted interest from eight keen bidders, following strong market interest, agent Jamie Dewe said.
Mr Dewe said the sale price of $5.68 million resulted in a 5.53 per cent yield for its previous owner, a Gold Coast-based development group.
“We had a variety of registered bidders from Canberra, Melbourne, the Gold Coast, Sydney and the Sunshine Coast,” he said.
“There was strong competition until the auctioneer’s hammer came down
“We ended up with two bidders going head-to-head until the property sold.”
After the destruction of the economy due to the COVID pandemic, Mr Dewe said the buyer was very pleased with the purchase price.
“It’s a brand new service station but it’s an exceptional yield for a regional commercial property,” he said.
“The seller was very pleased with the yield and the buyer was over the moon.”
The brand-new 385 square metre drive-through and convenience facility sits on a prominent 3900 square metre site and offers the new buyer significant depreciation benefits.
The property is secured on a long-term lease, returning a substantial annual net income of $314,300pa (plus GST) as well as highly desirable fixed compounding three per cent annual rent increases, ensuring growth.
Mr Dewe said the site’s prime location and attractive lease terms saw the property pique investor interest.
“United Petroleum and Pie Face secured the site on a brand-new 15-year net lease to 2035 plus options to 2055, solidifying it as a reliable investment opportunity,” Mr Dewe said.
“It’s also seamlessly integrated with a McDonald’s site located directly adjacent, allowing the businesses to capitalise on significant passing traffic.”
Commercial properties leased to essential services, including fuel and fast food, Mr Dewe said, had cemented their position as reliable, pandemic-proof investments.
“In the last financial year, 81 per cent of Burgess Rawson’s national sales were ‘essential service’ assets, including more than 87 freehold fuel and fast food asset sales across Australia,” Mr Dewe said.
“Since then, fuel and fast food assets have solidified a reputation as one of the most highly sought-after investments nationally.”