A investor has purchased the Shell and Coles Express site in Smithfield for $5.45 million on a 5 per cent yield – the highest bid at Burgess Rawson’s Portfolio Auction this month.

The service station, located on the corner of The Cumberland Highway and The Horsley Drive, is exposed to more than 60,000 cars daily and has a renewed 15-year Shell lease to 2026 including options to 2041.

Burgess Rawson Sydney Director, Darren Beehag said the 1,681 square metre corner site is proof that more people are looking to invest in Sydney’s surrounding suburbs as the population moves away from the CBD.

“This sought-after Shell site has massive exposure and is adjacent to the Coles supermarket, meaning there is a strong customer loyalty fuel reward program in place,” he said.

“With a potential to extend the lease for a further 15 years, the easily manageable investment is made even more attractive by its excellent lease terms with Shell set to pay all the outgoings including land tax – not to mention the high returns forecasted annually.”

The property, which also comes with a automotive workshop, has a net income of $277,459 per annum.

Extracted from Fairfield Champion