A Melbourne investor has snapped up a high performing service centre north of Brisbane boasting a long-term lease with one of the world’s largest convenience retailers.

He paid $7.4m for the 7-Eleven anchored property at 84 Bellmere Rd, Bellmere, after an expressions of interest campaign by Colliers’ Hunter Higgins and Sam Polichronis.

On a 4518sqm site the property’s other tenants include Champion Liquor, Bellmere Vet, The Dental Club and Remax.

Mr Higgins said with the campaign generating about 90 inquiries and five solid offers the service station market in South East Queensland remains robust with demand for quality assets.

“Service stations have captured the interest of various investors, ranging from small private investors seeking stable long-term income to large institutions looking to expand their portfolio,” he said.

“The fully leased centre with a strong 7.41 year WALE (weighted average lease expiry) neighbours a national childcare operator and brand new Woolworths Shopping Centre.”

The cashed up buyer this year also purchased a service station at 149 Brisbane St, Beaudesert, for $5.3m.

The Bellmere Service Centre, which opened in 2019, is in a major growth hub of Caboolture with dual street frontage to both River Dr and Bellmere Rd, which are connected to main arterial roads King St and Morayfield Rd.

The sale realised a yield of 7.75 per cent. According to CoreLogic the property last changed hands in 2020 for $7.925m.

Mr Polichronis said service stations were viewed as attractive investment opportunities, offering potentially lower initial investment requirements.

“Despite general concern regarding the future of service stations due to alternatives becoming

desirable, the overall growth of the sector has grown significantly with projections estimating further growth in the coming years,” Sam Polichronis said.

“Offering essential services, assets like these play a crucial role in daily life and are more resilient to economic conditions, making them a less risky investment with a reliable income source and capital growth potential, making them a popular choice among investors.”

Prices soar

Local and interstate investors have paid $34m for six Queensland childcare centres as the sector remains a recession proof option for buyers.

Stonebridge Property Group sold the childcare centres over the past couple of months with a Sydney investor paying $3m for the G8 Education tenanted Kindy Patch facility at 17 Clay St, West Ipswich.

The yield of 4.63 per cent was the lowest in the Queensland childcare sector over the past two years.

Stonebridge’s Tom Moreland, who sold the properties with Michael Collins, Kevin Tong, Rorey James, Thomas Proberts, James Freemantle and Brett O’Neill, said the childcare sector has been “very buoyant”.

“These sales have probably signified the pent up demand for childcare assets at the moment,” he said.

“The investments acknowledge the value in trading assets and childcare centres are increasingly popular as investment vehicles primarily driven by a long-term leases, the nature of the offering and resilience of the sector.

“Within the commercial property sector asset popularity is strongest across freehold childcare and fast food.”

Stonebridge also sold a brand new facility at 89 Smiths Rd, Caboolture, tenanted by Eden Academy to a private buyer for $7.7m at a yield of 5.6 per cent following a competitive expression of interest campaign

Other recent sales handled by Stonebridge’s specialist childcare team were:

• Little Locals Childcare Greenbank, $8.9m (5.5 per cent yield);

• Affinity Childcare Maryborough, $3.5m (6.87 per cent);

• Eden Academy Woodridge, $5.05m (5.80 per cent) and;

• Imagine Childcare Maryborough, $5.85m (5.68 per cent).

Mr Moreland said the buyers were private individual or families from interstate or Queensland.

“We’re seeing ongoing resilience in the market,” he said.

“These are set and forget long-term passive style investments where the tenants are paying all the outgoings. The affordability of childcare continues to increase off the back of government support.”

Syndicate muscles up

A syndicate of interstate investors has snapped up a property north west of Brisbane which is anchored by a fitness franchise.

They paid $4.25m for the 1730sqm site anchored by Snap Fitness at 26 Main St, Samford Village, after a campaign that highlighted the future development potential of the corner site.

The property was sold after an expressions of interest run by Colliers’ Nick Wedge who said there was strong interest in the asset with the campaign generating over 60 inquiries and four offers at the close.

“Rarely do commercial investments come up for sale in this highly sought after enclave in Samford Village, which led to strong interest in the campaign,” Mr Wedge said.

“The buyers were attracted to the asset being 100 per cent leased to international brand, Snap Fitness, on a 10-year lease until 2031, with a five-year extension option.

“Further to this, the property benefits from existing DA approval to extend the building area by 44 per cent demonstrating the immediate development upside with passing income.”

Mr Wedge said the surge in population has fuelled the demand for health service assets, which strengthened the property’s appeal as a viable investment opportunity, with this asset transacting at a 6.43 per cent yield.

He said the site is situated on the main Samford Village thoroughfare on a corner site, boasting one of the most exposed buildings on the street, and hosts the only gym in Samford.

“The site has 25 onsite car parks with a 1:23sqm carparking ratio which would support a

variety of future potential essential service uses including retail, office, medical and childcare,” Mr Wedge said.

“And with the median house price in Samford now almost $1.7m and an average household income of $145,757, this is a high growth suburb that would benefit greatly from further essential services.”

Extracted in full from:  https://www.couriermail.com.au/business/prime-site/hot-property-investors-swoop-on-a-service-station-north-of-brisbane-and-queensland-childcare-centres/news-story/c86ce228d86e7f997e1dc04668296442

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