A new 7-Eleven service station and Zambrero drive-thru in the recently completed St Albans Convenience Retail Centre are being offered for sale through Burgess Rawson from CBRE.
The centre, developed by Vernacular Property and Capital Prudential, is located on the homebound side of Sunshine Avenue in Melbourne’s north-west, metres from the Western Ring Road on and off ramps.
It is exposed to more than 252,000 vehicles weekly and sits in an area supported by strong residential growth and major infrastructure projects, including the Melbourne Airport Rail and Sunshine Station upgrade.
Jamie Perlinger, Senior Director at Burgess Rawson from CBRE, said the tenants and location would attract strong buyer interest.
“Convenience retail and fast food are among the most resilient investment sectors in Australia, and opportunities to secure long-term income from household names like 7-Eleven and Zambrero are increasingly scarce.”
The 7-Eleven tenancy is secured on a 12-year lease through to 2037, returning $390,000 per annum plus GST with fixed annual increases of 3.5 per cent. Zambrero has committed to a 10-year lease through to 2035, paying $140,000 per annum plus GST with 3 per cent annual increases. The centre also features a Local Laundry Lounge and an Evie Networks electric vehicle charging station. Overall, it generates a net income of approximately $581,000 per annum, with a weighted average lease expiry of more than 11 years.
“The combination of fixed rental growth, strong covenants and Vernacular’s proven track record of delivery makes this asset an appealing proposition for private and institutional investors alike,” said Perlinger.
Expressions of Interest close on Wednesday 29 October at 3pm AEDT.
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