- Sold for $7.6 million on a 5.14% yield to a local investor
- Low yield represents a new benchmark for a freestanding 7-Eleven in Queensland
- Property was marketed as part of Cushman & Wakefield’s National Investment Sales April portfolio
A 7-Eleven at 2009 Sandgate Road, Virginia was recently sold for $7.6 million on a 5.14% yield to a local investor.
The low yield represents a new benchmark for a freestanding 7-Eleven in Queensland.
The property was marketed as part of Cushman & Wakefield’s National Investment Sales April portfolio. It was sold by Michael Collins and Tom Moreland in a competitive on-market process which generated over 55 enquiries.
The 2,843 sqm site is considered a prime location on the major six lane Sandgate Road carriageway, which is exposed to over 44,000 passing vehicles daily.
It is placed as the only inbound service station for 7.5 km. Built in 2016, the property is leased by 7-Eleven until 2031 returning $390,778 p.a. (ex GST), with favourable 3.75% fixed annual increases.
“Long term leased investments such as this remain highly sought after, particularly those with favourable annual rent increase structures,” said Michael Collins, Cushman & Wakefield’s Head of National Investment Sales.
“This, coupled with the asset’s prime metro location along well-known Sandgate Road garnered a lot of interest by the high net worth investor community. The market remains as hot as it’s ever been in our segment of the market.”
“Fuel and convenience retail continues to stand out in the alternative asset class,” added Tom Moreland, Cushman & Wakefield Associate Director.
“The non-discretionary nature of the tenant’s business is particularly attractive in the COVID environment, as service stations continue to trade throughout each stage of lockdown. We expect to see the high level of demand continue as long as interest rates remain at record low levels.”