Isaac Property has sold a Lithgow service station and neighbouring church converted restaurant – both leased to national retailers – for c$10 million.
The essential services investment, 1129-1131 Great Western Highway, took a week to find a buyer, JLL’s Dan McEvoy, who marketed the property with Gordon McFadyen, said.
On 2632 square metres, it includes a 7-Eleven developed in 2017 and rented until 2032, and house of worship occupied by Mexican diner Zambrero for seven more years.
The sale price reflects a 4.92 per cent net yield.
Darlinghurst headquartered Isaac is one of the country’s biggest convenience store consultants and developers.
Sharp yield for regional roadhouse: agent
The 7-Eleven and Zambrero replaced the site for years occupied by car dealership Lean & Bennett.
It now forms part of a multi-use service centre connected to a McDonald’s and additional customer parking and Main Street crossover (story continues below).
The Great Western Highway, Mr McEvoy said, is one of the state’s most prominent.
Lithgow is about 150 kilometres north west of Sydney.
“This sale represents a new record within the market signifying one of the sharpest yields achieved to date for a roadside service centre investment located in a regional location,” the agent added.
“We expect this trend to continue into 2021 as private investors seek to secure passive, long-term investments as an alternative to cash in the current low yield environment”.
According to colleague Mr McFadyen, the [convenience] sector has undergone significant yield compression in recent years, and stayed resilient throughout COVID.
“Long leased assets to high quality covenants are in extremely high demand and there is a clear lack of supply of these assets in the marketplace,” the executive said.