Chinese investor pays more than $4.5 million for newly built Goulburn service station
A recently built petrol station and fast food complex in a busy Goulburn truck stop precinct sold for a bullish $4.53 million on Tuesday – a Chinese investor’s second investment in the past 18 months.
In the shadow of the Big Merino, the town’s newly built service station had been attracting plenty of investor attention – with more than 100 inquires and more than 25 contracts issued in the run-up to the auction, according to listing agent Darren Beehag of Burgess Rawson.
The buyer beat five other parties to land the winning bid at Burgess Rawson’s Sydney portfolio auction, which record a 74 per cent clearance rate.
They purchased a Central Coast KFC outlet from Burgess Rawson less than 18 months ago.
The site is surrounded by national brand names, including Bunnings Warehouse. Photo: Supplied
The complex at 180 Hume Street, which has Woolworths as the major tenant, had only been completed earlier this year by a Canberra-based developer Rod Thompson who has a track record working with supermarket chains.
Mr Thompson, a former Goulburn man, bought the land from Bunnings in May, 2013, according to The Goulburn Post.
The report said that Oporto and Harry’s Cafe De Wheels were also set to join the South Goulburn precinct in the future.
The 4317-square-metre corner site has a 15-year lease to Woolworths, which commenced in March 2017 with options to 2052, and a 10-year lease to Red Rooster which commenced in March 2017 with options to 2047.
“It was a strong result but not totally unexpected, because it was a good site,” said Mr Beehag, adding that it carried a 5.1 per cent indicative yield.
The complex is located in the strategic food and service “stop off” precinct within 500 metres of ramp access to the Hume Highway and surrounded by Bunnings, McDonald’s, Subway and Shell.
The site is opposite the iconic Big Merino and in a busy truck stop precinct. Photo: Supplied
“It’s a very, very good site, because it’s adjacent to a successful Bunnings, and because it’s very well known to those who travel the Sydney to Canberra, or Sydney to Melbourne route,” Mr Beehag said.
He said there had long been demand for more facilities in the area – an hour from Canberra – both from locals and interstate drivers.
Full results from Burgess Rawson’s June Sydney Portfolio Auction. Photo: Burgess Rawson
“Goulburn is growing but it’s a combination of the two. I think there was untapped demand for another service station along the highway,” he said.
Aside from the location, a desire for secure leases to major national and multinational corporations continued to drive interest in service stations and fast food outlets from domestic and international buyers, Mr Beehag said.
“There’s no doubt the market is still gravitating towards [these assets], it’ll pay a premium for obviously security to the majors on long leases. You can’t get a much higher covenant than Woolworths,” he said.
The sale was easily the most impressive regional result on the day, although the top result went to a 7-Eleven service station in Mt Druitt – going under the hammer for $6.61 million.
Other results included the sale of a G8 Education-tenanted childcare centre in Sydney’s Kellyville Ridge for $2.55 million and a warehouse in Canberra’s industrial suburb of Hume.
The Bridgestone tyres tenanted asset at 4 Sawmill Circuit sold for $4.31 million on a yield of 5.2 per cent – believed to be a national record for an auto accessories asset.
Listing agent Shaun Venables said the sale was proof that investors were seeking alternative investments to childcare centres and service stations, as those two asset types become increasingly out of reach.
“It’s a long term lease with a high calibre tenant… As far as what investors are looking for it ticked every box,” Mr Venables said.
