Cranbourne service station value rises 26pc in 22 months

The Cranbourne West service station sold for $4.9m in mid-2019.

A Cranbourne West service station offloaded by developers Nigel Hunt and Dug Pomeroy less than two years ago for $4.9 million has sold again, for $6.18m.

The latest price for 1050 Thompsons Road reflects a 4.78 per cent yield.

The Willoughby property is zoned for residential but potentially tenanted until 2039.

In May, 2019, the return was 5.92pc.

On 2973 square metres, the complex is leased to United Petroleum.

It was developed on part of a 1.3 hectare site, part of the Thompsons Gateway complex which also contains offices and shops.

Jones Real Estate’s Tim Spargo and Paul Jones marketed the service station both times; they were joined in the latest campaign by Luke Peric.

Willoughby servo zoned for residential

Meanwhile at Sydney’s north Willoughby, a BP-backed petrol station collected $5.02m from a local investor – reflecting a 3.85pc yield.

The offer for 498 Willoughby Rd resulted in an expressions of interest campaign closing early/after three weeks.

With options, the tenant can occupy the 803 sqm site with three street frontages until 2039 (story continues below).

The Lower North Shore service station, opposite Porsche Centre Willoughby.

The land is zoned for residential and is opposite offices and a Porsche showroom.

LJ Hooker’s Steve Kruyer was the agent.

“The volume of enquiry for 498 Willoughby Rd from private investors was substantial, underlining the rising attraction of petrol station investments in Sydney,” the executive said.

“Demand comes as public transport has dropped since COVID, with NSW Transport data showing train, ferry and bus usage in December was approximately 44pc below the same month in 2019,” according to the broker.

“Petrol stations are deemed an essential service and have become blue-chip assets for investors following the pandemic, especially when they carry long-term leases with steady income streams.

“The Willoughby BP exchanged on such a tight yield because of the further underlying appeal of its development upside,” Mr Kruyer said.

“As we come out of COVID we’ll see a lot of petrol station owners seek to realise growth and test the market,” he added.

Willoughby is eight kilometres from the CBD.

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Marc Pallisco

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

Marc Pallisco