Brisbane retail and fuel convenience development sold on a key arterial road in Brisbane’s south for a very strong yield in an off-market deal, demonstrating the ongoing appetite for quality investments in the city. The deal was negotiated by Jason March and Christian Sandstrom of Knight Frank.

The 4,578sq m property at 2433 Logan Road in Eight Mile Plains was purchased by a Queensland-based private investment group from Eight Mile Property Group in a circa $15 million deal negotiated by Jason March and Christian Sandstrom of Knight Frank.

The development, which is nearing completion, is on the site of what used to be a car yard and consists of a 203sq m service station and retail space consisting of 225sq m leased by KFC and 149sq m leased by Starbucks.

7-Eleven, KFC and Starbucks have leased space in the now fully-committed development, with leases averaging 10 years.

Transaction at a glance:

• A 4,578sq m property at 2433 Logan Road in Eight Mile Plains that is being developed into a retail and fuel convenience centre has sold for circa $15m
• The development was purchased by a Queensland-based private investment group from Eight Mile Property Group in a deal negotiated by Knight Frank
• The old car yard site is now home to a 7-11 service station and convenience centre, KFC and Starbucks, with all three national tenants taking on leases averaging 10 years
• The strong sub 5% yield for the sale was significant, particularly in this higher service station price bracket

Mr March said the sale was completed off market, which meant the asset was only introduced to a limited and targeted audience of service station investors.

“The deal is significant in the yield achieved, which was sub five per cent, in this price bracket, all achieved off market.

“It clearly demonstrates there is still a strong appetite for retail convenience investments, even in higher price brackets, where there is a smaller buyer pool.

“One of the major drawcards of this asset was that it was fully leased to national tenants, guaranteeing income for around the next decade at least.

“The market is still strong, driven by the lack of quality stock in the marketplace and high demand from investors.”

Mr Sandstrom said that whilst there have been question marks over the future of service centres with the gradual uptake of electric vehicles, demand remained strong for quality assets.

“The amount of capital flow seeking long-lease assets with secure income anchored by national and international companies is at its highest levels since COVID 19, with record yields being paid for this asset class,” he said.

“Developers are now designing these service centres with complementary retail and business services that provide alternate revenue streams which will ‘future proof’ their income potential and re-adaptive use.”

Mr Sandstrom added that the property was in a prominent location at Eight Mile Plains, which was set to undergo future change.

“It’s on a main arterial, so the development is highly visible to passing traffic,” he said.

“Eight Mile Plains has been identified as a key economic growth area for Brisbane, with council creating the Eight Mile Plains Gateway Neighbourhood Plan to identify opportunities for investment in greater infrastructure, industry and development.

“Future development will be supported by the Brisbane Metro, which links Eight Mile Plains, Royal Brisbane and Women’s Hospital and the University of Queensland to the Brisbane CBD.”

To request a sales analysis please email either of the Knight Frank selling agents via the below contact forms.