Second Dandenong South service station sells in as many months
A Dandenong South service station has traded – the second in two months.
The marketing agents aren’t disclosing the sale price of 260-262 Hammond Road – which is $3.825 million reflecting a 6.4 per cent yield.
Built in 2017 and with 13 years left of a lease to Shell, it includes a 227 square metre complex and sits on a 2222 sqm site with a diesel filling station at the south west corner of Kilkenny Street.
The rental agreement is unusual in that the occupier pays a year’s rent in advance – deposited, annually, as a lump sum.
Burgess Rawson’s Jamie Perlinger, Zomart He and Billy Holderhead with Cameron’s David Johnson promoted that the property is “in the heart of one of Australia’s most important industrial precincts”.
They added Dandenong South’s industrial, logistics and business park precinct has noted land value increases of up to 225 per cent since 2009.
Major occupiers in the area include Amazon, Australia Post, Nissan, Mondelez, Nissan, Star Track Express and Visy.
The property was to have formed part of Burgess Rawson’s 135th monthly portfolio auction event on April 1, which was cancelled last month following federal government social distancing laws.
Dandenong South is about 31 kilometres south east of the CBD accessed by major roads Eastlink, Peninsula Link, Monash Freeway and South Gippsland Freeway.
Another service station set for sale at this month’s portfolio auction, in Victoria’s coastal Rosebud, 50 kilometres south of Dandenong South, traded privately for $7.6 million – a 5.5 per cent yield.
Deal the second recently for a Dandenong South service station
Last month, following an off-market and off-the plan deal, Jones Real Estate’s Tim Spargo and Paul Jones sold a service station investment at 247-263 Greens Road, Dandenong South, for $8.05 million.
The brokers had just leased the new complex at the entrance to Logis Eco-Industrial Park.
Based on the starting annual rent of that 15 year agreement to United Petroleum, this deal reflects a 5.35 per cent net passing yield.
Pomeroy Pacific and McLaren Investments were the vendors of the asset, the first service station car commuters cross taking the Greens Road Eastlink exit east.
Last June the pair banked $4.9 million offloading a new petrol station in Cranbourne West – about a 15 minute drive south of Dandenong South. Mr Jones also sealed this deal.
Sale the latest of a swag since last October
Fifty eight service stations sold as part of three portfolios in the four months to February, 2020.
Two of the collections were offered by 7-Eleven’s Australian franchise owners with leasebacks.
Caltex offloaded the rest following an internal analysis of which properties in its portfolio would attract residential developer interest.
Its sites, spread nationally, sold to a mix of vendors including Woolworths (which snapped up 10) and developer Oliver Hume, on behalf of an Asian investment group (5).
Following an estimated $44 million remediation cost, which Caltex must pay, it banked $92 million.
Assets in the 7-Eleven portfolio were also offered separately – most were worth $3-$6 million and exchanged on yields of 4-6 per cent.
All up the brother and sister Withers and Barlow families banked $156.1 million from the disposals.
It also sold 15 7-Eleven freeholds as investments in 2014 for a total of $71.1 million.
