SIX registered bidders were pumped as they battled it out for a BP-branded service station and convenience store, with the hammer falling at $2.6M at 494 Forest Road in Penshurst, NSW.
The self-serve service station was leased by a BP franchise and came with a 221sq m* building area and 1,106sq m* site area.
The asset was marketed and sold by Ray White Commercial NSW Director Michael Ajaka and Ray White Hurstville Sales Manager Christopher Munk.
Mr Ajaka said there was strong bidding for the property in front of a 50-strong crowd at the Ray White auction in-rooms in Sydney.
“The bidding started at $1.6M and more than 35 bids later, the sought-after asset finally sold for $2.6M, $1M more than the opening bid,” Mr Ajaka said.
“Two multi-site service operators looking to add the property to their individual portfolios were raising their paddles, with a local Chinese syndicate and offshore buyer also bidding, until a local identity placed the winning bid.
“The sale represented a yield of five per cent net and highlighted how service stations are a solid investment in the current market.
“It’s the only service station to be sold in the St George area in at least five years, with me selling the previous one.”
Mr Munk said the asset was in a high-profile location and that Forest Road was subject to high volumes of traffic flow.
“The property is leased to the BP operator until September 2020 with 2×4-year options taking you all the way up to 2028,” Mr Munk said.
“The asset produces $127,202* net rent p.a. + GST^ and has fixed three per cent increases.
“There were over 67 genuine enquiries for the asset, and they’re still contacting Michael and I, wanting service stations.”