Developer and investor Peter Spargo has banked $7.1 million from the disposal of a new service station in Melbourne’s burgeoning northern suburb of Mickleham.
The deal for 470 Donnybrook Road (pictured, top) was struck on a low passing yield of 4.92 per cent.
Mr Spargo, who owns a portfolio of Victorian petrol stations, is selling the property to a private investor following an off-market campaign managed by Jones Real Estate’s Tim Spargo and Paul Jones.
Peter Spargo, the director of builder Spargo Group and a former Melbourne Football Club vice president, signed petroleum giant BP to a 15-year lease for the property last August.
BP is paying a starting annual rent of $350,000 plus GST and outgoings. Its lease includes fixed annual increases of 3 per cent. Beyond 2033, BP has three renewal options to stay, potentially until 2048.
“There is significant demand for income producing assets at present,” Tim Spargo said, adding that the agency presented “multiple off market offers” to the vendor over a three week period.
The service station is located within the Merrifield Business Park – a 330-hectare estate starting to take shape about 32 kilometres north of the Melbourne CBD.
Marketed as being Victoria’s largest master-planned employment precinct, with the potential to employ about 30,000 people, Merrifield Business Park is being developed by Gibson Property Group and MAB Corp.
Dulux, D’Orsogna and Sterilech have recently signed on as occupants.
In March we reported that German hypermarket Kaufland had acquired a 28-hectare block at Merrifield Business Park, where it is planning a 115,000 square metre office-warehouse speculated to have an end value of $459 million.
Merrifield also includes a residential and town-centre component, covering about 570 hectares, abutting the business park.
Last week private investors Dug Pomeroy and Nigel Hunt sold a Cranbourne West service station investment (pictured, above) for $4.9 million on a yield of 5.92 per cent.
This property, 1050 Thompsons Road, leased to United Petroleum, was also marketed by Jones Real Estate.