Pearl swoops on Gold Coast servo, mechanic
Pearl Energy is outlaying $8.75 million on an Ashmore convenience asset.
At 519 Olsen Avenue, on the north east corner of Southport Nerang Road, about 20 per cent of the 6680 square metre block offers retail development upside.
A 160 sqm service station was occupied until yesterday by Ampol.
The property also includes a 540 sqm workshop rented to Goodyear Automotive on a recently renewed five year lease; with options this group can stay until 2035.
There is a 120 sqm car wash too.
Based on the potential rental return, the deal reflects a 5.7 per cent market yield.
Ten offers were received for the asset, according to co-agents, Colliers’ Steven King and Clark Property Partners’ Steve Clark (story continues below).
Pearl operates out of 55 Australian sites.
“Although this site was predominantly a value-add opportunity, the sale highlights the strong demand among yield-hungry investors for service station assets,” Mr Clark said.
“Diminishing returns have put unprecedented pressure on investment yields for fuel, automotive and fast food assets and this looks set to continue for some time,” he added.
In July we reported Fawkner Properties acquired 31 service stations from Waypoint REIT for $113.9m – a 10.1pc premium to the book value six months earlier.
Ashmore is about five kilometres west of Surfers Paradise.
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