Aussies’ quick petrol stops are fuelling a multimillion-dollar investor frenzy, as quiet suburban servos morph into cash-printing machines.
A powerhouse deal has been unleased by commercial property heavyweight Stonebridge Property Group – involving a jawdropping portfolio of blue-chip service stations and convenience hubs across Queensland, South Australia, Victoria and Tasmania – anchored by major names like Viva Energy, 7-Eleven, BP, United Petroleum and Coles.
The rare opportunity has deep-pocket buyers already circling given the potential for “set-and-forget” income streams, with leases locked in for up to 15 years and some stretching an entire lifetime of 75 years all the way to 2101.
The kicker is that these are elite “triple net” investments – considered the holy grail for passive income hunters – with tenants paying for everything from property taxes to maintenance, insurance and even structural repairs and owners simply collecting the rent or “mailbox money” as it’s been dubbed in the past coming in faithfully rail, hail or shine.
Stonebridge partner Michael Collins said “triple net leases of this tenure and quality are among the most defensive income investments available in the Australian market today”.
He said “the fuel and convenience sector is in a strong position”.
“Investor sentiment has shifted considerably over the past twelve months, with private capital recognising the long-term resilience of essential service assets backed by ASX-listed and globally recognised covenants”.
Seven blue-chip assets are now up for grabs across Queensland, South Australia, Victoria and Tasmania – including three triple-net leased sites secured to Viva Energy – the $4.2 billion fuel titan responsible for supply roughly one in every four litres of petrol in Australia – in Birkdale, Glenorchy and Horsham.
Each of those Viva Energy leases includes fixed 3 per cent annual rent increases, with all outgoings fully covered by tenants.
Brisbane is ground zero for the action, with three other standout sites including a near-new Northgate 7-Eleven pumping traffic from over 40,000 cars that pass by daily, a prime Acacia Ridge corner location just 10km from the CBD locked in until 2051 and a combo site at Capalaba, featuring BP alongside Liquorland – backed by retail giant Coles Group.
Down south, Adelaide’s Melrose Park is serving up a freshly built United Petroleum site directly opposite the bustling Castle Plaza – which pulls in more than 3.3 million visitors a year.
Stonebridge Property Group executive Rory Alexander said the scale of the campaign sets it apart, adding it was “a genuinely rare concentration of blue-chip fuel and convenience investments coming to market simultaneously”.
The selling campaign is moving fast with the Northgate site hitting auction first on May 5, with the remaining properties closing via expressions of interest just one day later.
Extracted in full from: https://www.realcommercial.com.au/news/servo-gold-rush-as-fuel-giants-offload-sizzling-cash-cows
