A stable of United Petroleum-owned service station sites have gone under the hammer this month, totalling more than $22 million in sales.
With rents ranging from $220,000 to $395,000, five of the seven properties on offer sold while two properties, Cranbourne (Melbourne) and Maitland (NSW), were passed in.
Auctioneer Burgess Rawson director Jamie Perlinger said the Sydney auctions were quite competitive.
“In Melbourne and Hobart the interest was there, and we ended up selling one under the hammer and the other two straight after,” he said.
“There was definitely some strong interest in these assets.”
Each of the properties sold went for 20 year leases to 2036 at fixed annual rent increases of 3.5 per cent, with the tenant responsible for all outgoings, structural works, underground repairs and remediation.
On Tuesday the Rydalmere (NSW) site sold for $5 million with growth in value of 4.4 per cent, while North Richmond sold for $5.52 million with growth of 5.43 per cent.
On Wednesday four southern sites went up for grabs, with Narre Warren (Vic) selling for $4.26 million with growth of 6.1 per cent, Hobart North (Tas) sold for $3.751 million with 6.5 per cent growth, and Launceston (Tas) sold for $3.75 million, returning 6.5 per cent.
Mr Perlinger said he did not yet anticipate any further United Petroleum sites going up for sale.
In early September a portfolio of six United Petroleum sites sold for a combined total of more than $32 million, indicating a stronger market for service station investment than real estate observers saw ten years ago.