Mid-$20m expected for West Gate Freeway servo

One thing’s for sure: you’ll have a captive audience during peak hour at this service station and fast food complex on Melbourne’s West Gate Freeway.

MAB Corporation is selling the new West Gate Express complex, with price expectations in the mid-$20 million range.

The 10,000sqm property, positioned on the inbound side of the freeway just 3km from the CBD, features a Shell and Coles Express-branded service station, as well as Hungry Jacks and Red Rooster restaurant.

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It will be sold subject to 15-year leases to Viva/Energy Australia, Red Rooster and Hungry Jacks, with a total lease income of $1.41 million.

A significant carrot for prospective buyers is the 180,000 cars that pass the site daily.

Savills’ Chris Jones, Clinton Baxter and Ben Hegarty have been appointed to sell the service station in conjunction with Andrew Dawkins and Walter Occhiuto from Dawkins Occhiuto.

The West Gate Express complex is just 3km from Melbourne’s CBD.

Jones says that while they’re tipping a price in the mid-$20 millions, the rarity of the property made a true figure difficult to gauge.

“It is an opportunity that rarely comes to market and that is unlikely to be repeated given the dearth of similar sites and properties offering such strong locational advantages and investment credentials,” Jones says.

“This is an exceptional opportunity on one of Australia’s busiest roads with an extraordinarily secure lease profile to several high profile national and international tenants and very strong underlying land value.”

The site comprises almost 700sqm of buildings, 1200sqm of service station canopies and 57 parking spaces, as well as access from both the West Gate Freeway and Cook St.

The service station and fast food outlets are spread over a 10,000sqm site.

It is also opposite the 37ha former General Motors Holden property at Fisherman’s Bend, which is awaiting development.

Occhiuto says few commercial properties attract Westgate Express’ volume of passing traffic.

“Both of these roads – West Gate Freeway and Cook St – provide the complex with unparalleled exposure to what is a rapidly expanding business catchment driven by the most dynamic commercial development region on Melbourne’s CBD fringe,” he says.

“The region includes Fishermans Bend – Australia’s largest single urban renewal redevelopment project – and the expansion of the Melbourne Ports precinct, both of which will add significantly to business activity and of course traffic movements.”

The property will be sold via an expressions of interest campaign that ends on July 14.