A LOCAL Sydney investor has purchased a BP service station for $8,000,000 at 14 Bernera Road in Prestons, NSW, as the asset class continued to fuel interest in the commercial market.
The south-west Sydney asset, that came with a site area of 3,612sq m* and great access to major arterial roads, was sold on a 5.5 per cent yield.
The property was marketed and sold by Ray White Commercial QLD father and son duo Stephen and Elliot Kidd, in conjunction with Ray White Commercial Western Sydney Director co-agent Joseph Assaf.
Mr Stephen Kidd said many more investors were looking to quietly buy investment property off-market and they required much more stock to service this growing market sector.
“The tenant is a multi-store operator with 29 other sites around Australia and is on a 15-year lease with two extra five-year options,” he said.
“The property provides a net income of $442,617* p.a. plus GST with the lessee liable for 100 per cent of the outgoings, including land tax.
“It represented a strategic land holding in thriving south-west Sydney with the lease length totalling 30 years once the options were exercised.
“The asset offered a single-tenant investment with the BP service station incorporating Pie Face and Burger Edge as sub-tenants.
“It’s also important to note that the rear truck-fill facility operated strongly during the recent COVID-19 crisis.”
“Construction was only completed in 2016 and the property has excellent rent reviews being the higher of CPI, or four per cent,” Mr Assaf said.
“Service stations continue to keep investors pumped and will always be seen as a reliable asset, especially when in a good location.”
Mr Elliot Kidd said the investor had a historical affinity to the suburb and was excited to acquire such a high-performing asset, despite the COVID-19 pandemic.
“Double-skinned fibreglass tanks and the latest tank monitoring equipment also gave the new owner peace of mind when acquiring her first fuel investment,” he said.
“We look forward to chatting with investors about some of our other off-market service station investments.”