Auction: Servo investment pumps up Shearwater
No.100 Alexander St, Shearwater. Picture: Supplied
A rare service station investment opportunity has emerged in Shearwater, the first offering of its kind in years.
The United Petroleum site sits on a substantial 5951sq m freehold landholding with 100m of frontage along Alexander St, the main arterial road connecting Port Sorell, Shearwater and Hawley Beach.
The investment features a 20-year triple net lease extending to 2036, with options that could potentially extend the arrangement through to 2061.
Under the lease terms, United Petroleum is responsible for all outgoings including rates, building insurance, public liability insurance and land tax.
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No.100 Alexander St, Shearwater.
No.100 Alexander St, Shearwater.
The property at No.100 Alexander St, Shearwater, is for sale with Elders Commercial and Burgess Rawson from CBRE.
Burgess Rawson senior sales executive Rick Jacobson described the asset as one of the most exceptional and rare service station leases to hit the Tasmanian market.
“It is the first offering of its kind in Tasmania since 2022,” he said.
“The landlord-favourable triple net lease terms see the tenant responsible for all outgoings including single holding Land Tax and structural repairs and maintenance.
“It has a blue-chip location, adjoining the premier neighbourhood shopping centre anchored by Woolworths and BWS, and an incredible 5951sq m commercial zoned site with outstanding prospects for future development (STCA).”
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No.100 Alexander St, Shearwater.
No.100 Alexander St, Shearwater.
The asset’s annual rent increases are fixed at 3.5 per cent, providing predictable income growth over the lease term. The current net income sits at $197,620 per annum plus GST.
United Petroleum operates more than 500 sites nationally as one of Australia’s largest independent fuel retailers.
The Shearwater location serves as the only service station within a 12km radius of the Shearwater and Port Sorell catchment area.
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Head of commercial sales for Elders Commercial Northern Tasmania, Nicholas Bond, said Shearwater, Port Sorell and Hawley Beach is a booming coastal residential precinct, which has experienced significant population growth and new development in recent years.
“In 2024, a report for the Latrobe Council estimated that the population in Port Sorell was expected to increase 43.9 per cent by 2046, with some 926 new dwellings required,” he said.
No.100 Alexander St, Shearwater.
No.100 Alexander St, Shearwater.
“The immediate area continues to see new development proposed, including a $45m project by OneCare to significantly expand its independent living and other facilities at its Rubicon Grove site.
“This surrounding activity adds to the appeal of the United site, as it’s located on the main arterial road connecting all the local population centres and is also the only service station within the entire Shearwater/Port Sorell catchment.”
No.100 Alexander St, Shearwater, will be sold at action on October 22 at the Crown Casino Melbourne.
