Melbourne QSR asset collects $14m
A new quick service retail investment in south east Melbourne has sold for $14 million – a 5.61 per cent yield.
With a BP, KFC, Repco mechanic and car wash, 1110 Koo Wee Rup Road, Pakenham, covers 1.06 hectares, passed by over 20,000 vehicles a day.
The petrol station is the first off the Princess Freeway south bound, opposite South East Business Park.
“Koo Wee Rup Rd remains the suburb’s key arterial linking its expanding residential community with major industrial and employment hubs,” Jones Real Estate’s Paul Jones, who brokered the deal with Luke Peric and Stonebridge’s Rorey James and Kevin Tong, said.
The area’s population – just over 85,000 – is set to nearly double by 2041, Mr Peric added.
The deal comes five months since we reported Jasbe sold a BP service station and two warehouses on 6693 square metres at Clayton for $11.78m – a 6.17pc yield.
Both buyers were private investors.
Another Pakenham deal
The deal comes two months since Design RV sold its Pakenham base to a private investor with a leaseback.
On 2.02ha with 10,960 sqm in three buildings, it collected $22m – a 6.5pc yield.
Also that month, an investor sold 5 Link Road for $9.75m after a four year hold.
Arguably the area’s highest profile recent property sale is the ex-Victorian Livestock Exchange, for $25m.
“Pakenham is fast emerging as one of Melbourne’s strongest growth corridors with the 630ha Pakenham East Precinct Structure Plan set to deliver over 7000 new homes and 1400 jobs,” Mr Peric said.
“Major industrial and logistics expansion including the Cardinia Logistics Estate and Cardinia Business Park is driving significant commercial traffic along Koo Wee Rup Rd, major infrastructure upgrades are also enhancing connectivity and accessibility,” according to the executive.
“Costco is set to open its $74m superstore by 2027,” he added.
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