A high-profile service station holding in suburban Ashmore on the Gold Coast has sold for $8.75 million to emerging national fuel retailer Pearl Energy.

The site, on the corner of Olsen Avenue and Southport-Nerang Road, comprises a land area of 6680sqm and offers the buyer further development potential on an existing unused portion of the site.

The property has been sold through an expressions of interest campaign conducted by Colliers International and Clark Property Partners, with the deal negotiated by Steven King, Colliers Gold Coast director in charge, and Steve Clark, director of Clark Property Partners.

The campaign drew more than 140 enquiries which led to 10 formal offers being submitted at the close of the campaign.

“Demand for this property was exceptionally strong, highlighting the prime position and upside potential of the site,” said Mr King.

The property anchored by an Ampol service station, who are vacating in December and consists of a 160sqm retail shop, nine fuel pumps and five underground 42,000 litre steel tanks plus a 120sqm car wash. The site is also tenanted by a 540sqm showroom-workshop leased to Goodyear Automotive.

“Many investors were drawn to the Ashmore site for the opportunity to create a long WALE investment with a diversified income stream that they could hold long term or trade however ultimately the eventual buyer was an end user for the service station,” said Mr King.

“A further 1,300sqm of land slopes away from the site which potentially can be reclaimed to further expand the site’s leasehold offering.

Steve Clark added “Primarily, though, this property’s appeal to the purchaser was to secure a premium site for an expanding fuel brand.”

Pearl Energy has 55 sites nationally as well as affiliations with supply partners Mobil Oil, BP Australia and Ampol Australia. The company launched its first Pearl Energy brand in the Brisbane suburb of Durak in 2018 and has plans to grow the brand further over the next five years.

The property was put to the market by vendor Tweed Coast Sands Pty Ltd with the expressions of interest campaign closing on October 21.

Mr Clark said although this site was predominantly a value add opportunity, the sale highlights the strong demand among yield-hungry investors for service station assets, and this was reflected in the sale price.

“Diminishing returns have put unprecedented pressure on investment yields for fuel, automotive and fast-food assets and this looks set to continue for some time,” he said.

To request a sales analysis please contact the selling agents via the below contact details.