Shell Coles Express Service Station Investment Opportunity
A service station investment opportunity anchored by a long term tenancy to Shell Coles Express at Gympie in South East Queensland is being offered for sale by Ray White Commercial.
The investment property on an approximately 1831 sqm site at 102 River Road, Gympie, is being marketed via Expressions of Interest by Stephen Kidd of Ray White Commercial (Qld).
Stephen Kidd said the service station investment offers income security underwritten by a long term lease to an international tenant.
“This investment opportunity is currently returning net rental income of $328,457 per annum and the capital security is underwritten by a 15 + 4*5 year lease, which commenced in 2012,” he said.
“The service station is in a busy location near McDonalds, Pizza Hut, Hungry Jacks, Woolworths, Coles, Big W and Bunnings.
“Approximately 20,000 vehicles pass the site each day and the business enjoys substantial local loyalty and business support generated from the Coles Shopper Docket promotions.”
Ray White Commercial Head of Research, Vanessa Rader, said increased demand from property investors for service station assets in metropolitan and regional areas of Queensland has resulted in a strong consolidation of yields.
“Service stations have been highly sought after by a new breed of property investors looking to secure assets with long lease tails to multinational tenants in both major city centres and regional areas of Queensland,” she said.
“In many cases these assets have limited outgoing expenses and a stable income outlook making them increasingly popular amongst a growing number of purchasers.
“This has resulted in increased competition and reducing average yields across both SEQ and regional Queensland which is set to continue for the remainder of 2016 and into next year.”
Stephen Kidd said Gympie is an important service centre in the Wide Bay-Burnett regional approximately 160km north of Brisbane and approximately 30 minutes’ drive to Noosa Heads on the Sunshine Coast.
“Gympie’s proximity to the Sunshine Coast growth region is one of its attractions and it will benefit from the construction of the Sunshine Coast Hospital and the expansion of the Sunshine Coast Airport,” he said.
“The population of the Gympie region is approximately 50,000 and it offers an enviable climate, affordable housing, employment opportunities and a wide range of educational options.”
Expression of Interests for the Gympie site close on Thursday, November 17, 2016.