A Lower North Shore BP has changed hands on a 3.85% yield before auction as the investment appeal of petrol stations rises post COVID-19 negotiated Steven Kruyer, Senior Sales Director of LJ Hooker Commercial Sydney.

A private investor secured the 803sqm corner site at 498 Willoughby Road, Willoughby, unconditionally for $5.018 million in the third week of the campaign managed and negotiated Steven Kruyer, Senior Sales Director of LJ Hooker Commercial Sydney.

In addition to the current lease, tenant Jasbe Petroleum Group, operating as BP Willoughby, holds additional options at the site until 2039.

Mr Kruyer said the volume of enquiry for 498 Willoughby Rd from private investors was substantial, underlining the rising attraction of petrol station investments in Sydney.

Demand comes as public transport usage has dropped since COVID-19, with NSW Transport data showing train, ferry and bus usage in December was approximately 44% below the same month in 2019.

“Petrol stations are deemed an essential service and have become blue-chip assets for investors following the pandemic, especially when they carry long-term leases with steady income streams,” said Mr Kruyer.

"The Willoughby BP exchanged on such a tight yield because of the further underlying appeal of its development upside. It’s zoned for medium-density residential on a corner site, only eight kilometres for the CBD.”

The lease includes fixed three percent annual returns.

Mr Kruyer said commercial property assets would continue to carry appeal in the immediate future as investors sought reliable returns in the low-interest rate environment.

“As we come out of COVID we’ll see a lot of petrol station owners seek to realise growth and test the market.”

 For further information on other petrol station opportunities or to request a detailed sales analysis please contact the selling agent Mr Kruyer at LJ Hooker Commercial Sydney via the contact form below