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News release

BRISBANE

United Petroleum Coolum Beach sells for $8.6million in JLL deal

Strong yields continue to drive demand for securely leased retail assets on prime real estate 


​United Petroleum Coolum Beach has sold for $8.6million to a private investor with an initial yield of 5.93%, in a deal negotiated by JLL's Retail Investments' Campbell Bowers with colleague Doug Rapson. 

The service station comprises a 'Quick Stop' convenience stop, large canopy area, and six numbered bowsers with 48 pumps capable of servicing 12 vehicles at any one time. The property also contains a single sub-leased tenant under the United Petroleum head lease, along with additional services including: an automatic carwash, air and water station, ice machine, a Swap 'n' Go facility and an ATM.

The 305sqm service centre benefits from two street frontages on the highly exposed David Low Way – the main state route linking Maroochydore through to Noosa Heads - giving the property access to both north and southbound directions of traffic flow, while situated in the centre of major residential and commercial beachfront density.

Coolum Beach has seen heavy residential and commercial development in the last 10 years, with the addition of a full line Coles Supermarket as well as the construction of high-density residential towers along the beachfront.

JLL's Campbell Bowers said the 20-year lease with options to 2056 and fixed annual rental increases presented a strong investment opportunity.

"The asset presented passive investors with a secure and long-term income growth opportunity and potential for long-term development upside in a sought after residential, commercial and development suburb."

"With finance at record lows paired with the onus of contamination risk and remediation costs falling on the tenant (or indemnifying the owner), investors have moved to seek out commercial property and fuel investments with strong lease covenants that are underpinned by strong land value," said Mr Bowers. 

This deal comes off the back of the successful sale of United Petroleum Labrador in April, which sold for $8.975million.