DEVELOPERS are fuelling growth in service stations on the Gold Coast off the back of strong sales for the assets.

Commercial Properties (Qld), linked to businessman John Bonnor, is building a service station at 31-41 Ferry Rd, Southport, which upon completion will be leased to United Petroleum.

The station will be the only one on the northern carriageway of Ferry Rd, which the developer identified in its application as an “underserviced market”.

Woolworths has applied to build a service station at 348 Foxwell Rd, Coomera, a short distance from the Woolworths-anchored Coomera East Shopping Centre and the Genesis Coomera estate.

The supermarket giant will lease a 2379sq m block from owner Trevor Thomas.

Several service station properties have sold recently for tight yields.

Late last year a Palm Beach holding with a 7-Eleven service station and McDonald’s restaurant was bought for $8.525 million on a 5.12 per cent yield.

In April a Labrador property at 16-18 Frank St with a long-term lease to United Petroleum sold for $8.975 million on a yield of 5.12 per cent.

JLL’s Campbell Bowers, who negotiated the Labrador deal with colleague Doug Rapson, said service station assets tick many boxes for investors.

Mr Bowers said they generally have tenants on long-term leases generating a significant passive income.

He said often there is also the potential for redevelopment. He pointed to the sale of the 7-Eleven service station last year next to Pacific Fair, which he negotiated with colleague Sam Hatcher.

The property sold for $10.1 million on a record yield of 3.13 per cent and has an approved height limit of 52m.

“They are extremely attractive, which is part of the reason they go for such tight yields,” he said.

The Ferry Rd service station will include a 270sq m building, loading bay, service yard, and five fuel bowser islands under cover.

It will also have a cafe or fast-food/takeaway outlet.

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