7-Eleven owners divest another freehold

The Killara site spreads 3526 square metres.

The Barlow and Withers families – owners of 7-Eleven in Australia – have sold another convenience retail investment, this time in Sydney’s north west Killara.

The Barlow family recently sold a Brighton mansion for c$30 million.

On 3526 square metres at 496 Pacific Highway – passed by over 50,000 vehicles a day, according to the agents – the asset was offered with a 10 year leaseback to the chain.

The $7.25 million result reflects a 3.96 per cent yield.

The deal comes three years since the same vendors divested a portfolio of 18 7-Eleven outlets, also with leasebacks, for $78.2m – a blended 4.83pc return.

In late 2019, meanwhile, the family banked $77.9m offloading 15 more stores, on yields between 3.82-6.07pc, while nine years ago it reaped $71.1m selling another 15 freeholds.

“The hunger for recession proof assets remain[s] at an all ime high as they are rarely offered to the market, provide landlord friendly net leases and long-term secure income streams,” Burgess Rawson’s Yosh Mendis, who marketed 496 Pacific Hwy with Campbell Bowers and Jamie Perlinger, said.

Portfolio sale

The Killara property was one of 10 scheduled for a bulk-auction yesterday; five sold with the balance trading before (story continues below).

A Centrelink banked Bathurst office sold for $5.1 million – a 7.1 per cent return.

All up they collected $35m.

The blended yield was 5.25pc.

The agents said the Killara 7-Eleven was one of two properties to trade at auction on a sub four per cent return – the other, a McDonald’s at 7 Galena St, opposite Westside Plaza, at Broken Hill, fetched $5.75m (a 3.9pc yield).

Also finding favour with investors was a Centrelink at 166-170 Russel St, Bathurst, which traded for $5.1m, reflecting a 7.1pc return.

A Guzman Y Gomez outlet meanwhile, in Orange, collected $6.1m prior to auction – a 3.81pc yield.

“[The] portfolio results exemplify the continued demand for strategically located, fast food, childcare and metropolitan convenience retail assets with outstanding sub four per cent yields being achieved,” Mr Mendis said.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.