Another Victorian service station investment has sold, this time just west of Ballarat.
A local buyer paid $6.7 million – a price reflecting a five per cent net passing yield – for BP Delacombe at 316 Glenelg Highway, on the north west corner of Wiltshire Lane.
On a 4579 square metre Urban Growth zoned site, next door to a McDonald’s restaurant and opposite Bunnings, Dan Murphy’s, Kmart and Woolworths, the 460 sqm facility only opened in March.
It contains two vacant retail spaces which marketing agency CBRE said could return $80,000 in annual revenue.
BP is paying $336,000 yearly, yet, on a 15-year long rental agreement. Each year, the rent will rise 2.5 per cent.
The incoming owner will also be able to claim years of depreciation (taxation) benefits.
Land around the parcel, some 120 kilometres north west of Melbourne, is expected to be replaced with about 1100 dwellings in coming years.
One housing estate, Winterfield, backs onto 316 Glenelg Highway.
Rorey James, Kevin Tong and Justin Dowers closed an expressions of interest campaign for the Delacombe asset on May 20. Their sale was first reported by realcommercial.com.au in this item, yesterday.
Last week we reported that a new service station in Seymour, with a 15-year lease to Shell, traded for $4.4m on a sub-six per cent return the week before a marketing campaign was to have started.
Lawyer Konfir Kobo also sold an asset of this type, in March, for more than $6m, in Gisborne – roughly 95 kilometres between Ballarat and Seymour.