Torquay petrol station serves massive premium at portfolio auction
A fuel and service centre at the gateway to Torquay has earned a massive yield at a hotly contested portfolio auction.
The Shell/Viva Energy service station and MyCar service centre at 20 Winki Way, Torquay, sold for $8.355m, booking a 4.89 per cent yield.
The freestanding property was expected to fetch between $7m and $7.5m at Burgess Rawson’s first investment portfolio auction for 2021 in Melbourne last week.
But hot competition in the way of 105 separate bids saw the property set the remarkable price.
Burgess Rawson agent Raoul Holderhead said eight bidders had registered for the opportunity, with two Melbourne parties providing the main competition.
Burgess Rawson director Jamie Perlinger said the 4001sq m property offered some of the industry’s strongest investment credentials, as it was poised for further growth and the Surf Coast was experiencing a surge in population as new residents move to the region in the wake of COVID-19.
“Population growth for the area is second to none, as everyone is looking to work from home and make a permanent move to their holiday houses,” he said.
“It really has changed this whole area, which was already booming but there’s been an even greater focus on it since the pandemic.”
Along with 10-year leases to Viva Energy and German-owned Continental AG/Mycar (previous known as Kmart Tyre and Auto), with further options to 2049, the purchaser of the corner site would benefit from significant depreciation benefits on the 2019-built property, along with the 50 per cent stamp duty savings available on regional assets.
The site has an estimated net income of $408,840 per annum, which includes soon-to-be-completed restaurant The Diner.
Mr Holderhead said it was one of 20 commercial properties offered at the portfolio auction, which sold for a combined total of more than $67m.
He said the location of the service station was a key to its success in the eyes of investors, with Bunnings and Aldi next door and the Surf Coast Shire corporate offices across the road.
The Surf Coast Highway service station is also the last in Torquay before the Geelong Ring Road takes motorists to Melbourne.