A regionally located fuel & convenience retail asset has changed hands for $9,150,000, reflecting a strong 6% yield. The sale was brokered by Stonebridge’s Michael Collins, Tom Moreland and Brett O’Neill, fielding numerous formal offers for the property and over 80 genuine enquiries throughout the competitive national marketing campaign.

The property, located at 98 Corporation Avenue, Bathurst, is underpinned by long 12 and 10 year leases to 7-Eleven, Red Rooster and Subway, and receives exposure to over 13,045+ vehicles daily, courtesy of 150 metres of triple street frontage to the Mitchell Highway linking Bathurst to Orange.

The newly built asset offers a future proof combination of fuel and fast food across its large 3,583 sqm landholding, strategically integrated with a brand new McDonald’s restaurant. The investment delivers a commencing net income of $550,104 pa* + GST, with annual rent increases guaranteed via fixed 3% reviews.

Commenting on the sale, Stonebridge Partner, Michael Collins noted “Following a comprehensive national marketing campaign which generated over 80 enquiries our team received numerous formal offers. With brand new improvements and located beside McDonalds on the Mitchell Highway linking Bathurst to Orange, this property traded at a 6% yield reflecting a strong outcome for a regionally based asset.”

Stonebridge Partner, Tom Moreland added “We are witnessing increased investment activity across the fuel & convenience market, driven by the stronger risk-adjusted returns on offer compared to other freestanding asset classes, such as standalone fast food and childcare investments, which continue to trade at sub 5% cap rates in certain locations”.

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