A portfolio of six United Petroleum-owned sites sold in early September, with a combined total of more than $32 million, demonstrates the strength of commercial property in the current economic environment.
The United Petroleum sites in NSW, Victoria, Western Australia were all sold under a 20 year sale and lease back arrangement.
Real estate observers say that compared to 10 years ago the market for such sites has sharpened.
The low interest rate environment has also seen investors seek out commercial property and fuel investments with strong lease covenants and strong underlying land value.
Sort-after blue-chip lease covenants include Wesfarmers, United Petroleum, Woolworths, Caltex, Shell and BP.
United Petroleum portfolio sells for combined total of $32,645,000
Sales demonstrate market strength
Other recent sales demonstrate the market strength including a United Petroleum site in Box Hill, Victoria for $3.47 million; a Shell station in Berowra, NSW, which sold for more than $5 million; and Woolworths Caltex in Jerrabomberra, NSW for $1.4 million.
Forthcoming sales
C&I Week contacted United Petroleum for comment but did not respond prior to publication.
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