Lithgow service station sold located along one of Sydney’s prominent highways for $10 million representing a 4.92% yield. JLL’s Directors of Middle Markets and Metropolitan Investments – (NSW), Dylan McEvoy and Gordon McFadyen.

JLL transacts service station on a 4.92 % yield, marking strong yield compression for service station assets selling for more than $7 million within regional locations.

JLL’s Directors of Middle Markets and Metropolitan Investments – (NSW), Dylan McEvoy and Gordon McFadyen sold the 2,632 sqm service centre located at 1129 -1131 Great Western Highway, Lithgow on behalf of Isaac Property. The sale was off-market and completed in one week.

The property is part of a large, multi-user highway service centre site given it is connected to the immediately adjoining McDonalds property with shared parking. Plus, ingress and egress access from the Great Western Highway.

Deal at a Glance:

• Asset description: Service station investment 
• Location: 1129-1131 Great Western highway Lithgow NSW
• Anchor tenants: 7-Eleven holds a 15-year lease and Zambrero holds a 10-year lease.
• Sold Price $10m
• Net income: $498,230 per annum.
• Yield: 4.92%
• Method of sale: Off Market Private Treaty
• Vendor: Isaac Property
• Selling Agency: JLL’s Directors of Middle Markets and Metropolitan Investments – (NSW)
• Selling Agents: Dylan McEvoy and Gordon McFadyen
• Source: JLL 

JLL’s Directors of Middle Markets and Metropolitan Investments – (NSW), Dylan McEvoy and Gordon McFadyen sold the 2,632 sqm service centre located at 1129 -1131 Great Western Highway, Lithgow on behalf of Isaac Property. The sale was off-market and completed in one week.

7-Eleven holds a 15-year lease and Zambrero holds a 10-year lease, generating a net income of $498, 230 per annum for the asset at 1129 -1131 Great Western Highway.

Mr McEvoy said, “This sale represents a new record within the market signifying one of the sharpest yields achieved to date for a roadside service centre investment located in a regional location.  We fully expect this trend to continue into 2021 as private investors seek to secure passive, long term investments as an alternative to cash in the current low yield environment.”

Mr McFadyen said, “The sector has also undergone significant yield compression in recent years and continues to strengthen as the sector demonstrates its resilience throughout the COVID-19 pandemic.  Long leased assets to high quality covenants are in extremely high demand and there is a clear lack of supply of these assets in the marketplace.”

c8e140f5-24f5-413b-8024-66f36714ffc3.png