Image: United Petroleum, Sandy Bay, Tasmania: Sold: $4,370,000; Yield: 5.03 per cent
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
United Petroleum, Yagoona, NSW: Sold: $4,820,000; Yield: 4.98 per cent
United Petroleum, Dee Why, NSW: Sold: $7,200,000; Yield: 4.86 per cent
United Petroleum, Geelong, Victoria: Sold: $5,650,000; Yield: 5.04 per cent
United Petroleum, Ellenbrook, WA: Sold: $4,580,000; Yield: 6.11 per cent
United Petroleum, Padbury, WA: Sold $6,025,000; Yield: 6.47 per cent
United Petroleum, Sandy Bay, Tasmania: Sold: $4,370,000; Yield: 5.03 per cent
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.
United Petroleum, Box Hill, Victoria: Sold: $3,470,000; Yield: 5.04 per cent
Shell, Berowra, NSW: Sold: $5,100,000; Yield: 6.76 per cent
This United Petroleum service station and store in Leda south of Perth is to be sold through Knight Frank. United has an 11 year lease over the site, expiring in 2027, plus two six year options until 2039.
Vacant Service Station, 90-94 Banna Avenue, Griffith NSW is for sale through Burgess Rawson. Includes convenience store, three roller door workshop with potential for car wash. Three UPSS holding 45,000 litres, 45,000 litres and 10,000 litres.
1,760 sqm site with three 44,710 litre underground fuel tanks. Next to major fast food stores, opposite Woolworths anchored shopping mall. 81-83 Banna Avenue, Griffith. For sale through Burgess Rawson.
C&I Week contacted United Petroleum for comment but did not respond prior to publication.
Sign up to C&I’s free bi-weekly newsletter here to receive the latest industry news every Tuesday and Thursday. Follow C&I on Facebook, Twitter and Linkedin.