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News release

Sydney

Seven NSW 7-Elevens sold under the hammer in Sydney for a combined $33.085m

The properties are part of a national portfolio that includes two further auctions of three 7-Eleven convenience stores in Queensland and six in Victoria this week


SYDNEY, 5 August 2014 – Seven New South Wales 7-Eleven convenience store and service station investments were sold in a highly competitive Sydney auction today for a combined total of $33.085 million with a benchmark yield of 3.85 per cent and an average yield of 4.6 per cent.

The buyers, all Private Investors, purchased the properties with leases of 15 years, plus three five-year options.

JLL’s John Macree, Leslie Cheng and Dylan McEvoy managed the sale process on behalf of the Withers Barlow Property Trust PL. The properties are part of a national portfolio that also includes three 7-Elevens in Queensland, going to auction on August 6, and six 7-Elevens in Victoria scheduled for auction on August 7.

According to JLL’s Director in Charge – Parramatta John Macree, the lively auction highlighted the continued strength of service stations as an attractive asset class for investors.
“The properties represented an incredible rare offering, ticking almost every box for an investor looking for a secure investment with a premium tenant, long-term lease, high underlying land value, certainty of rental growth, and high-profile exposure locations.

“Each of the individual 7-Eleven investments offer all of the necessary ingredients for a prudent investor, with highlights including 15-year lease terms that commenced between 2010 and 2012, with three five-year options; fixed four per cent annual rent increases, with the tenant responsible for all outgoing costs except land tax.

“Given the current low cash rate and low borrowing costs, these types of properties are an ideal investment opportunity for private investors. This was reflected in today’s auction. The properties today achieved record low yields which can be attributed to the present low interest rate environment,” said Mr Macree.

7-Eleven is a globally recognised brand and Australia’s number one convenience retailer. 7-Eleven Stores Pty Ltd is owned by the Withers/Barlow family and ranks in the Top 30 of BRW’s Top 500 Private Companies listing.

The New South Wales 7-Eleven convenience store and service station investments sold today are as follows:

  • Ashfield, 132 Hume Highway – 1,524 sqm, sold for $4.9m with a yield of 4.21%
  • Camperdown, 198 Parramatta Road – 1,107 sqm, sold for $3.65m with a yield of 4.72%
  • Dee Why, 940 Pittwater Road – 1,867sqm, sold for $5.05m with a yield of 3.85%
  • Mona Vale, 38 Barrenjoey Road – 1,573 sqm, sold for $4.325m with a yield of 5.04%
  • Macquarie Park / North Ryde, 404 Lane Cove Road – 1,716 sqm, sold for $6.01m with a yield of 4.96%
  • Sans Souci, 476 Rocky Point Road – 1,538 sqm, sold for $4.55m with a yield of 4.96%
  • St Ives, 157 Mona Vale Road – 2,257 sqm, sold for $4.6m with a yield of 4.94%