NSW service stations fetch $33m at auction

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The South Australian government has sold a portfolio of four NSW service stations for more than $33 million, Commercial Real Estate has reported.

The service stations belonged to the government-owned investment corporation, Funds SA.

One of them, in Sydney’s Waterloo, received more than 100 bids and eventually sold for $12.86 million.

The other service stations – one in Narellan and two in Greenacre, NSW – sold to private investors.

$9m, nine bidders

The Waterloo site, the most expensive, occupies 3,724sqm at 867-877 South Dowling Street. It has three street frontages, including 90m on South Dowling Street itself.

After bidding opened at $9 million, nine bidders did battle for more than an hour, says JLL’s Nic Simarro, who sold the service stations with Harry Sullivan.

“The sale price achieved was above reserve, representing a yield of four per cent,” Mr Simarro said.

“Some 170 inquiries came in during the auction campaign. Investors were attracted by the future residential development prospects of the high-profile city-fringe site.”

One investor, two sites

One private investor bought both sites in Greenacre. The one at 9-11 Roberts Road sold for $7,365,000. The other, about 300m away, at 74 Roberts Road, sold for $7,675,000. Both are about 3,700sqm.

The Narellan service station, at 287-293 Camden Valley Way, sold for $5.46 million and is about the same size.

All four sites are head-leased to Viva Energy, the supplier of Shell fuels, which pays all outgoings and land tax. Each site also sub-leases space to Coles Express and a fast-food outlet.

The four properties sold for a combined $8.3 million in 1994 to 1996, according to Domain Group records.

Strong prices in regional areas

Real-estate firms expect strong prices for investments in regional areas, too. Some have tipped two unbuilt petrol stations on the M1 Pacific Motorway between Wyong and Newcastle, NSW, to sell for more than $15 million combined.

Industry experts expect the sites, in Cooranbong and Dora Creek, to be worth $85 million when finished. They’ll have a yearly income of about $5 million, according to estimates.