‘Set and forget’: Service station sells for the cost of a mansion
2 Naves Drive, Pimpama, sold for $6.3m.
A one-year-old South East Qld service station that sees an estimated 110,000 vehicles pass by every day drew seven offers before selling at auction for the cost of a mansion.
A Brisbane investor paid $6.3m for the service station and fast food offering at 2 Naves Drive, Pimpama, which sits on a 3,848sq m block.
IBISWorld estimates the fuel retailing industry in Australia to be worth around $45b, employing over 47,000 people across more than 7,000 businesses.
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It has two tenants Pearl Energy and Evive Chicken Carvery.
Pearl Energy, which has over 70 service stations nationwide anchors the site, with Evive Chicken Carvery running their fourth fast food drive-through store there.
Ray White Commercial QLD retail specialists Stephen and Elliot Kidd said the seller was delighted with the result, which had a 5.5 per cent capitalisation rate.
Stephen Kidd said there were over 100 enquiries for the property with seven offers received.
“The demand for modern, well located service stations continues to outstrip supply with a few disappointed prospects from this campaign.”
The service station was just completed a year ago.
Inside the restaurant side of the site.
He said the market for leased investments in South East Queensland was “still very strong”.
“Investors were attracted because of the exposed retail position, the large block of land offering many future redevelopment options, the underlying population growth with direct access to the M1 duplication and also the strong tenant profiles.”
“The new owner was also attracted by the modern safety and monitoring features built into the development to protect against contamination issues.”
OVer 110,000 vehicles were said to pass the site every day.
Elliot Kidd said Pimpama would continue to be an attractive investment location given its proximity to Brisbane and to the Gold Coast.
The site has a weighted average lease expiry rate of 13.4 years.
He said his team was ready to begin marketing another service station anchored by Caltex which also has a drive-through food offering.
“I anticipate similar enquiry levels and competition (as the Naves Drive site),” he said. “Investors like the low maintenance, set and forget nature of these investments.”
