Petrol station owners rush to cash in

Service stations can be a solid investment option if you get the right one.

A surge in investor interest and shrinking yields are the catalysts for a spate of petrol stations hitting the market across Australia, agents say.

Five petrol stations will be put on the block across two days of Burgess Rawson investment portfolio auctions in Melbourne and Sydney this month, as vendors chase bigger returns in a hot market.

A Woolworths Caltex station at Clayton in Melbourne’s south-east sold last month for $4.44 million on a tight yield, prompting other owners to follow suit, Burgess Rawson agent Scott Meighan says.

Among the five stations up for sale is a BP in nearby Cranbourne, which is leased to the petrol giant until at least 2021.

The BP in Cranbourne sits alongside a strip of convenience stores and restaurants.

The BP in Cranbourne sits alongside a strip of convenience stores and restaurants.

“Further to the impressive sale of the Woolworths Caltex in Clayton at a yield of 4.9%, another vendor has recognised the opportunity to strike while the iron’s hot and offer to the market this secure and prominent fuel investment,” Meighan says.

The Cranbourne property sits on a 3523sqm corner site, incorporates a four-island canopy and an automatic car wash and returns $369,752 in rent per annum. It will be auctioned in Melbourne on May 18.

This is likely to leave even more unsatisfied parties looking to secure similar assets

The string of petrol station listings comes amid ongoing reports of a dearth of petrol station stock.

A Knight Frank report last year predicted a lack of available stock would see petrol stations continue to be highly sought after after among investors.

A Shell petrol station at Glen Innes is among five up for grabs at Burgess Rawson investment auctions.

A Shell petrol station at Glen Innes is among five up for sale at Burgess Rawson investment auctions.

Meighan echoes that sentiment, suggesting buyers who miss out on the current batch of offerings will be scouring the country for other opportunities.

“This is likely to leave even more unsatisfied parties looking to secure similar assets. Quality investments such as this one are certainly in demand,” he says.

Meanwhile, four petrol stations will be auctioned back-to-back in Sydney on May 17, including a pair of Shell-leased stations in Glen Innes and Gympie.

And a BP in Scone in regional New South Wales and a station leased to Freedom Fuels in Capalaba, east of the Brisbane CBD, are also up for grabs.

Fast food restaurants will also feature prominently at the auctions, with a Hungry Jacks at Mount Isa, a McDonalds at Scone, a Pie Face at Coogee and a Coffee Club outlet at Jimboomba in Queensland for sale.