A Western Sydney petrol station has changed hands for $9.5 million after the new owner secured a record-breaking rental return as commuters continue to get squeezed at the pump by high prices.
The petrol station on Woodville Rd in Granville included a 3,554sqm landholding with a two-level commercial warehouse, with the new landlord set to get a 3.54 per cent yield.
That’s a fully leased net income of $336,465 per annum over four years, according to a release by selling agency CBRE announcing the sale.
Selling agent Robert Dowdy said the yield brokered was an Australian record for a service station asset in 2026.
“Investors are fuelling up on service stations,” Mr Dowdy said.
“Demand for fuel and convenience retail investments, leased to premium retailers, is at an all-time high.”
Mr Dowdy noted buyers were targeting well-located assets that offer flexibility, strong income and long-term upside.
Large sites rarely came to market in prime metropolitan locations, he added.
The Granville property was reported to have attracted considerable interstate and international interest from investors and owner occupier groups.
These parties were linked to self-storage, fast food, community and childcare sectors as well as office occupiers, car dealers and hotel developers.
“Service stations provide an essential service and are one of the country’s hottest investments,” Mr Dowdy said.
Among the best performers were those offering mini-supermarkets or retail restaurants to prop up earnings.
A number were also installing electric vehicle chargers to future-proof their assets,” Mr Dowdy said.
Electric vehicle chargers offer an avenue for growth in the sector, with high-speed EV chargers increasing the dwell time on petrol station sites from 3-5 minutes to 15-30 minutes.
The Granville service station is close to Sydney’s major arterial roads, providing easy access to Parramatta Rd and direct access to James Ruse Dr, Victoria Rd, and the M4 Motorway.
Extracted in full from: https://www.news.com.au/finance/real-estate/sydney-nsw/petrol-stations-insane-earnings-revealed-after-selling-for-95m/news-story/072a44920381a0d58a844ee7bb15a41c
