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News release

MELBOURNE

Retail investment momentum continues with the sale of two United Petroleum neighbourhood service stations

Two United Petroleum service stations in Melbourne’s Doncaster East and Preston have sold for a combined $18,460,000 to private offshore investors as demand in retail investment continues to flourish


​​Two United Petroleum service stations in Melbourne’s Doncaster East and Preston have sold for a combined $18,460,000 to private offshore investors as demand in retail investment continues to flourish.  

JLL’s Directors of Retail Investments Stephen Bolton and Stuart Taylor sold the assets on behalf of United Petroleum and featured ‘brand new’ 20 year triple net leases to United Petroleum, plus lease options until 2056.   

The Doncaster East United Petroleum service station and convenience store achieved a sale price of $7.35M with an initial 4.69% yield.  Strategically located on the ‘homewood’ bound side of 183-185 Reynolds Road, Doncaster East, 19 Kilometres from the Melbourne CBD and adjacent to Stockland – The Pine regional shopping centre.

United Petroleum Preston is located on the highly exposed corner of Bell Street and Albert Street with a passing traffic of 70,000 + vehicles daily.  The 3,871 sqm site located 11 Kilometres north of the Melbourne CBD also offered a 15 year lease to Hungry Jacks and sold for $11,110,000 with a 4.45% initial yield.

Mr Bolton said, ‘The assets presented passive investors with a secure and long term income growth opportunity and potential for long term development upside in two of Melbourne’s most sought after residential, commercial and development suburbs.  The new 20 year lease with options to 2056 and fixed annual 3.5% rental increases presented a strong investment opportunity.’

‘Low yields are continuing to be achieved within the sector with these results further supporting the ongoing yield compression for prime retail investments in the Melbourne market.  The level of Victorian retail transaction volume in the last 3 months is 75% higher than the total for the first 6 months of 2016,’ Mr Taylor added. 

JLL’s Victorian Retail Investment Division are currently marketing Woolworths Service Station at 745 -751 Springvale Road, Keysborough which is to be auctioned on Thursday, 8th December at 11am.