Rare eastern suburbs investment with development upside for sale at auction
JLL appointed to sell prime leased service station with future development potential
SYDNEY, 23 May 2019 – A service station on one of Randwick’s highest-profile road junctions is set to go under the hammer next month as the eastern Sydney suburb nears a major transport infrastructure milestone.
JLL’s Nic Simarro and Dylan McEvoy will take 43-47 Frenchmans Road to auction on June 4, 2019.
“We expect significant interest from investors, developers and owner-operators who recognise the major future residential and commercial development upside of this service station investment,” Mr Simarro said.
Operating as a Shell-branded service station and a Coles Express convenience store, the property is leased to Viva Energy Australia until March 2021 with a further five-year option.
“An unusual and appealing aspect of this offering is that as a condition of the lease, Viva Energy Australia is required to remediate the site to its highest and best use at the end of the term,” Mr Simarro said.
“This lease condition is certainly not common and will make the asset even more attractive to investors, owner-occupiers and developers.”
Randwick is about to enter a new era of connectivity with the imminent launch of the South East Light Rail service which will link the suburb with the Sydney CBD. The service station is 1.2km from the new light rail route and 2.2km from Clovelly Beach.
Viva Energy Australia’s current lease term includes annual increases at a minimum of 3 per cent and up to 6 per cent. Under the terms of lease the tenant is responsible for paying all outgoings and land tax.
The 1245sqm site is on the corner of Clovelly Road and opposite Randwick’s main retail precinct.
Mr McEvoy said: “This is the perfect freehold investment for any investor or future owner-occupier looking for a defensive asset offering medium-term cash flow secured by a blue-chip tenant with the potential to develop or to occupy from March 2021 or 2026.”
The service station has four pumps with a total of 32 dispensers for petroleum and diesel, plus parking for eight vehicles.
The auction for 43-47 Frenchmans Road, Randwick, will be held at 50 Margaret Street in Sydney on June 4, 2019, starting at 10.30am.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.