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News release

Melbourne

High octane plus fresh food equals hot property

BP and Subway, Bass Highway, Devonport draw interstate investors


MELBOURNE, 7 AUGUST 2013 – There are no boundaries for those on the hunt for secure investments, with interstate purchasers snapping up the BP petrol station and Subway on Devonport’s Bass Highway in Tasmania.

Stuart Taylor and Stephen Bolton of Jones Lang LaSalle sold the brand new service station and adjoining Subway on behalf of a Melbourne developer following a successful Expressions of Interest campaign.

A private investor from New South Wales purchased BP Devonport for $2.87 million representing a net yield of approximately 8.6%. The service station has a new 10 year lease with three further terms of five years, providing a current rental of $250,000 per annum plus GST.

Subway was sold to a Melbourne private investor for $500,000 representing a net yield of approximately 6%. The property has a new 10 year lease to the fresh food giant with three further terms of five years, returning gross rental of $45,000 per annum plus GST.

Located on the north-western in the north-west of Tasmania, the properties are prominently positioned on Bass Highway which connects Devonport to Launceston and together with the adjoining McDonalds forms a major roadhouse/petrol and convenience centre. This roadhouse centre also forms part of the new, highly sought after Devonport Homemaker Centre including national retailers such as Harvey Norman, K&D Hardware (Mitre 10) and Ray’s Outdoors.

Mr Taylor said “The successful sale of these two properties highlights investor appetite for secure investments leased to national tenants, and investors are willing to look interstate to secure these opportunities.”

“We were able to leverage our national platform to facilitate the introduction and negotiation of the asset with investors Australia-wide.”

Mr Bolton said “Being brand new, the properties provide both purchasers with depreciation benefits and limited capital expenditure requirements.”

“This prime position on one of Tasmania’s busiest arterials provides a premium retailing position for both fuel and restaurant sales underwriting the ongoing strength of the existing uses.”

“Demand for service stations has been running hot, and Jones Lang LaSalle have sold in excess of $220 million of service station investments in Australia over the past three years, headlining a trend we see set to continue” Mr Taylor added.