Chris Herde, 08 April 2016

A RESURGENT service station sector has sparked a flurry of investment purchases.

Knight Frank’s director of service station sales Jason March recently finalised the sale of an outlet on Old Cleveland Rd, Capalaba, for $3.65 million.

It was his 10th settlement in this financial year and he has a couple more under contact.

“That’s the best ever. It’s double the average I normally sell,” he said.

“They’re in very high demand and there are plenty of buyers out there but we just need stock.”

A Brisbane-based developer bought the former BP service station, which is on a 2506sq m allotment on Old Cleveland Rd, vacant possession.

“Being positioned on one of Brisbane’s major arterial roads, the property was highly contested,” Mr March said.

“We had over 50 inquiries on the property and strong tenant interest, which resulted in several offers in writing on the first day.

“The site was sold with a comprehensive Environmental Site Assessment that showed no evidence of contamination and a positive tank and line test that streamlined the sale.”

The new owner has negotiated a 15-year lease with Freedom Fuels which is owned by Japan’s Idemitsu Kosan Co Ltd.

Mr March said as service stations provide more retail services, they have become a more profitable investment.

“The service station industry has seen major changes in the last 40 years; the days of the modest corner station with driveway service are long gone,” he said.

“Now, petrol stations offer a one-stop-shop for consumers, many open 24/7, increasing their revenue stream and turning higher profits.

“We’re seeing a resurgence in the service station market, with new service station developments being built, existing sites being re-tanked and upgraded throughout Australia.”

Extracted in full from the Courier Mail.