Service station opposite Rosebud foreshore trades prior to auction for $7.6 million

The property (marked) is opposite Rosebud foreshore at the northern edge of a retail strip.

A new Rosebud service station with a 15-year lease to Viva Energy, trading as a Liberty, sold for $7.6 million this week.

The asset, 803 Nepean Road (Nepean Highway), was scheduled for auction early next month.

Viva picks up all the outgoings including Goods and Services Tax, building insurance and land tax.

However its rental agreement includes annual CPI-based reviews.

Being completed late last year the asset provides the incoming owner with taxation depreciation benefits.

With a rental option, the occupier can stay on until 2054.

The deal comes a day after we reported a modern service station in Gisborne, about 50 kilometres north west of the Melbourne CBD, sold for more than $6 million also on a c5.5 per cent yield.

Postcard views from Commercial 1 zoned foreshore block

Rosebud is a Mornington Peninsula holiday hamlet 75 kilometres south east of the Melbourne CBD.

Opposite the foreshore, on a 1274 square metre block at the south west corner of Adams Avenue, 803 Nepean Road is at the northern edge of a retail strip containing Peninsula Cinemas Rosebud, Rosebud Beach Shopping Centre, Rosebud Plaza and ALDI.

Zoned Commercial 1 and with 100 metres of road frontage and three crossovers, the parcel is also near accommodation providers including caravan parks.

Based on the annual rental return ($420,000, excluding GST), the deal is being struck on a 5.5 per cent yield.

Burgess Rawson’s Scott Meighan and Jamie Perlinger were the marketing agents.

Privately selling property for public sale the next normal

The Rosebud asset was earmarked for the agency’s 135th national portfolio auction event on April 1. 

However late this afternoon the agency said it would convert those public sale campaigns to deadline private treaties due Friday, March 27.

As well as the Nepean Road property, the agency sold a Tarneit childcare centre, in Melbourne’s west, ahead of schedule.

With a 12 year lease to Sparrow Early Learning, it is trading to a Sydney buyer for $5.45 million.

Four more of the properties are expected to transfer to cash contracts this week, Burgess Rawson said.

Several other agencies including Allard & Shelton, Gorman Commercial and Melbourne Acquisitions have this month converted auction campaigns to alternative sale methods.

Last night the federal government temporarily banned public sales and open for inspections as part of updated COVID-19 social distancing measures.

Viva Energy pays annual rent of $420,000 ex GST to occupy the new Rosebud service station. In 2034, it has the option to renew for 20 years.
The Puma service station in Gisborne sold three hours after the close of a deadline private sale campaign – also on a c5.5 per cent yield.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco