Sold: United servo sparks heated auction battle
SOLD: No.100 Alexander St, Shearwater. Picture: Supplied
A Tasmanian service station has been sold for a multimillion-dollar sum in a hotly contested auction.
The United Petroleum asset in Shearwater was among the properties put under the hammer at the latest Burgess Rawson from CBRE portfolio auction in Melbourne.
It sold for $3.745m, achieving a yield of 5.28 per cent.
Senior negotiator at Burgess Rawson from CBRE, Rick Jacobson, said this was the sharpest yield for a service station investment in Tasmania since 2016.
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No.100 Alexander St, Shearwater.
No.100 Alexander St, Shearwater.
Mr Jacobson said it was a fantastic result, the best in Tassie for this type of asset in nearly a decade.
“By achieving such a low yield, it is evident that demand for fuel and convenience retail investments, leased to premium national retailers, is at an all-time high,” he said.
There was no shortage of investors looking to make their move for this asset.
“We had six registered bidders, one of which was Tasmanian,” Mr Jacobson said.
“Towards the end of the auction we had two people going back and forth, bid for bid.
“From about $3.3m onward, it was those two parties battling it out to secure the asset.
“They were both Melbourne-based investors, who clearly see that Tassie is on the map and a strategic place to invest.”
No.100 Alexander St, Shearwater.
No.100 Alexander St, Shearwater.
Head of commercial sales for Elders Commercial Northern Tasmania, Nicholas Bond, said during the campaign the asset attracted in excess of 130 inquires from around the country.
Mr Bond said investors were clearly drawn to the attractive triple net lease in place with United Petroleum and the 11 years remaining on the initial 20-year lease term.
“This, combined with the expected future population growth in the area and some recently announced development projects boded well for the campaign’s overall investor confidence in the North West region of Tasmania,” he said.
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The Shearwater property was marketed by Rick Jacobson, Sam Mercuri, Nicholas Bond, and Clinton O’Keefe.
Located at No.100 Alexander St, the service station is on 5951sq m of land with 100m of frontage on an arterial road connecting Port Sorell, Shearwater and Hawley Beach.
No.100 Alexander St, Shearwater.
No.100 Alexander St, Shearwater.
The investment’s lease extends to 2036, with options that could potentially extend the arrangement through to 2061.
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.
Meanwhile, the Melbourne auction event saw over $21m worth of assets sold.
Burgess Rawson from CBRE senior director, Matthew Wright, said these results demonstrate the intense investor confidence across multiple defensive markets, with strong appetite for quality commercial assets that offer defensive characteristics and long-term income security.
“The depth of bidding we’re seeing reflects a market that recognises value in well-located, covenant-backed properties delivering solid returns,” he said.
