In brief: Asia weighs into servo market

The Shell-Coles Express service station at Kingsgrove.
The Shell-Coles Express service station at Kingsgrove.

Asian investors are grabbing their share of Australia’s booming service station market, with one buying a Shell-Coles Express in Sydney on a tiny yield.

The service station at Kingsgrove in Sydney’s south fetched $5.06 million at auction, pushing the yield down to just 3.61%.

Marketed by Savills’ Steven Lerche, Robert Lowe and Andrew Palmer, the property at 137-139 Kingsgrove Rd sits on a 3320sqm site and is leased to Viva Energy Australia on a five-year lease worth $183,022 per annum.

Palmer says more than 160 potential buyers showed an interest in the asset.

“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,” he says.

“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.”

Sydney: $100m tipped for Rosebery site

The price for a prime block of potential development land 6km south of Sydney CBD is set to roar past $100 million when it sells in December.

The site at 12-40 Rosebery Ave and 108 Dalmeny Ave lies 1.2km from the prominent Green Square development at Alexandria

The significant 15,215sqm property was formed by combining three separate lots that are currently home to a number of industrial and commercial buildings spanning 11,722sqm, and draws a combined rental income of $2 million annually.

The development site in Rosebery is expected to sell for more than $100 million.

The development site in Rosebery is expected to sell for more than $100 million.

Colliers International’s director in charge of South Sydney, Michael Crombie, says Rosebery is already on the radar of major developers.

“This is one of the best sites to come onto the market in 2016. It has great scale, over multiple titles, quality buildings and solid income, allowing staging of the development,” he says.

“Well known developers have focused heavily on the Rosebery precinct, including Meriton, Mirvac, Stockland, Top Place, LivStyle and JQZ, as Rosebery provides a lifestyle choice for the discerning investor or occupier, with so many new trendy eateries within the precinct”.

Sydney: Lantern selldown extends to Five Dock Hotel

The Lantern Hotel Group has wasted no time in throwing a twelfth hotel from its dwindling portfolio onto the market, after selling three in quick succession.

Just days after finalising deals to sell Sydney’s Commodore Hotel, the Uncle Bucks Hotel at Mount Druitt and the Ambarvale Hotel, the group has listed what’s being described as its “jewel in the crown”: the Five Dock Hotel in Sydney’s inner west.

The three-level hotel operates 30 gaming machines, making it the group’s top gaming hotel, and it sits on a 688sqm landholding.

Lantern Hotel Group is selling Sydney's Five Docks Hotel.

Lantern Hotel Group is selling Sydney’s Five Dock Hotel.

Ray White Asia Pacific director Andrew Jolliffe is marketing the property, which he says makes a strong business case after a recent boost to its gaming offering.

“There exists a distinct lack of proximate competition in a very strong commercial and residential corridor, and the recent capital investment by Lantern Hotels, largely in the form of gaming machine hardware, has seen a demonstrable and very positive profit injection for the business unit,” Jolliffe says.

The hotel is for sale via expressions of interest, which close on December 5.

Melbourne: Time right for Cranbourne shopping centre

Springhill Shopping Centre at Cranbourne in Melbourne’s south-east has become just the fifth neighbourhood centre offered to the market in Victoria this year.

The 7100sqm centre, 48km from Melbourne’s CBD, is anchored by a Coles supermarket and has 15 accompanying specialty retailers.

It’s listing comes amid a scarcity of similar assets to have been put up for sale in 2016, according to CBRE’s Mark Wizel, who is marketing the property Justin Dowers.

Springhill Shopping Centre is just the fifth Victorian neighbourhood centre to be put up for sale in 2016.

Springhill Shopping Centre is just the fifth Victorian neighbourhood centre to be put up for sale in 2016.

“Properties like Springhill Shopping Centre are quite unique, with this sale marking just the fifth asset of its kind to be offered for sale in 2016,” Wizel says.

“By comparison, at the same time last year, 11 centres had been offered to the market – highlighting the unique nature of these assets.”

The centre also has a gym and a childcare centre.

Perth: Investors dine out at Hospitality Store

The home of Perth’s The Hospitality Store has sold at auction for $2.9 million.

The property, on the city’s CBD fringe, sold on behalf of an interstate vendor group on a 5.88% yield.

CBRE’s Ben Younger and Kate Foley oversaw the sale of the store, which lies on a 1015sqm site at 306 Newcastle St and generates an income of $170,000 per annum.

A Perth property leased to The Hospitality Store has sold for $2.9 million.

A Perth property leased to The Hospitality Store has sold for $2.9 million.

“The property’s high profile position on the fringe of Perth CBD and Northbridge, combined with its current holding income and future redevelopment potential, generated a strong level of interest from predominantly local buyers, whilst attracting interstate and some offshore interest.”

“Given the current buyer market environment for high quality retail investment properties and boutique development sites, we saw a high level of interest in this opportunity from investors and developers seeking a secure income stream with future capital growth.”

Brisbane: Anzac Avenue shops top $5 million

A Sydney-based investor has secured a prominent retail and restaurant hub at North Lakes on an attractive yield of almost 7%.

The investor paid $5.044 million for the Anzac Avenue Retail Centre, which counts Nando’s, Sunshine Kebabs, Pizza Temptations and Baskin Robbins among its tenants.

The Anzac Avenue Retail Centre sold for more than $5 million.

The Anzac Avenue Retail Centre sold for more than $5 million.

The 584sqm centre, 25km north of Brisbane’s CBD, is part of a 3349sqm site that includes car parking for 40 vehicles and was sold after an expressions of interest campaign that saw 10 buyers make a play.

“The centre was keenly sought after by investors given its quality tenant profile and high-profile main road location,” Savills’ Jon Tyson says.

South Australia: Port Pirie Hungry Jacks on the menu

A Port Pirie retail property leased as the South Australian town’s only Hungry Jacks outlet is to be sold.

CBRE’s Ben Heritage and Will Brown have been appointed to sell the 2967sqm landholding, which includes the 187sqm restaurant.

The 32 Main Rd property is leased to a Hungry Jacks franchisee on a 15-year term with 12 years remaining, as well as another two five-year options, at an average annual rent of $193,000.

Port Pirie's only Hungry Jacks outlet is to be sold with a 12-year lease.

Port Pirie’s only Hungry Jacks outlet is to be sold with a 12-year lease.

“Surrounded by a number of well-known national retailers including Supercheap Auto and McDonald’s, this property is strategically positioned on one of the city’s most popular retail strips – a factor which is expected to attract strong investor interest during the sales campaign,” Heritage says.

Brown adds: “With this property accommodating the city’s only Hungry Jacks, it is positioned to support continued strong trading figures and subsequent guaranteed income return.”

“We anticipate strong interest in this blue chip asset, which represents one of the most attractive leased investments of this year.”