EG Group sells nine servos
EG Group has sold nine of the 540 service stations acquired as part of a $1.725 billion deal with Woolworths in 2018.
The Caltex-backed properties reaped a total of $54.5 million.
The priciest, at 756 Pittwater Road in Sydney’s north Brookvale (pictured, top), earned $8.8m, trading on a 2.9 per cent yield.
Another at nearby 348 Barrenjoey Rd, Newport, traded for $8.3m, reflecting a 3.25pc return.
Others are in Bulli, Spring Farm and Turramurra, in New South Wales, at Ballarat in Victoria and Perth’s Aveley and Warnbro.
Cushman & Wakefield’s Michael Collins, Aaron Dahl, Yosh Mendis, Josh Moreland and Geoff Sinclair represented the UK vendor (story continues below).
“Seeing petrol stations sell on sub three per cent yields is reflective of the market dynamics at present, as high net worth investors continue to target defensive assets and scour the market for higher-yielding investment opportunities,” national director Michael Collins said.
“We are regularly seeing private investors bidding up these properties beyond reserve, and vendors looking for opportunities to lock in capital appreciation”.
Last week a Willoughby service station leased to a BP franchise until 2039 sold for $5.02m – reflecting a 3.85pc yield.
In Melbourne’s Cranbourne West, a petrol station which traded for $4.9m less than two years ago sold again for $6.18m.
