A local investor has snapped up a 7-Eleven at 2009 Sandgate Road, Virginia, for $7.6m on a 5.14% yield. The low yield represents a new benchmark for a freestanding 7-Eleven in Queensland.
The 2,843 sqm site enjoys a prime location on the major six lane Sandgate Road carriageway, which is exposed to over 44,000 passing vehicles daily. It is uniquely placed as the only inbound service station for 7.5km.
Built in 2016, the property is leased by 7-Eleven until 2031 returning $390,778 pa (ex GST), with favourable 3.75% fixed annual increases.
The property was marketed as part of Cushman & Wakefield’s National Investment Sales April portfolio, and sold by Michael Collins and Tom Moreland in a competitive on-market process which generated over 55 enquiries.
Cushman & Wakefield’s Head of National Investment Sales, Michael Collins, said: “Long term leased investments such as this remain highly sought after, particularly those with favourable annual rent increase structures.”
“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”
Cushman & Wakefield Associate Director, Tom Moreland, said: “Fuel and convenience retail continues to stand out in the alternative asset class.”
“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.”