An as new 7-Eleven Service Centre with a Go2 Car Wash, located at 245 Ross River Road in Aitkenvale, Townsville has sold for $6.6 million prior to the closing date of an Expressions of Interest Campaign, signalling a significant shift in investor sentiment and confidence within the fuel sector. 

Neville Smith of Burgess Rawson and Glenn Conridge of Commercial East Coast Investments who handled the transaction, believe the sale highlights the uptick in investor appetite for quality investment assets with certainty around interest rates stabilising.

According to Mr Smith, "We initially took this property to market in July last year, however with the continuation of interest rates increasing buyer participation was subdued."

The sellers, Townsville Retail Assets No 1 Pty Ltd, opted to re-introduce the property for sale via an Expressions of Interest (E.O.I.) campaign, scheduled to close on March 21.

Mr Smith said that within the first week alone, we fielded over 30 enquiries, culminating in three unconditional offers to purchase before the scheduled closing date.

Mr Smith added that the successful buyer, a Queensland-based private investor, promptly signing a cash unconditional contract.

“Completed in July 2023, the secure 12-year lease to 7-Eleven and Go2 Carwash plus options extending to 2055, the property‘s substantial 3,435 square metre site, commanding prime exposure, with an estimated 22,000 vehicles passing daily were some of the major fundamentals that attracted the buyers attention”  Mr Conridge said. 

The sale price of $6,600,000 reflects a blended net yield of 6.53% per annum.

Mr Conridge also underscored the evolving market dynamics, noting, "After nearly two years of rising interest rates, investors are now witnessing a more stable financial landscape in 2024, with well-documented forecasts suggesting potential interest rate reductions later in the year."

This sale follows the sale in January this year by Commercial East Investments and Burgess Rawson, of a Caltex tenanted convenience centre at Pimpama on the Gold Coast for $7,225,000.

Related Reading:

Why Investing in Australia's convenience retail sector is proving lucrative - Burgess Rawson | Commo.

Burgess Rawson first 2024 Auction Event records $66.79 m  | Commo.

Burgess Rawson’s Portfolio Auction Event Reaps $103m | Commo.

North Queensland 7-ELEVEN Service Centre sold $6.6M Burgess Rawson