Service station investment in Manly sells on tight return
SYDNEY- April 16, 2020 –A service station anchored by Jasbe Petroleum in Manly has sold to a private investor for $7.2 million. The sale concludes at a time when the service station sector continues to demonstrate healthy investment fundamentals.
JLL’s Metropolitan Sales and Investments Director’s (NSW)- Dylan McEvoy, Gordon McFadyen and Peter Seeto brokered the deal located at 133-139 Pittwater Road, Manly at a sale rate of 4.1 percent on behalf of Jasbe Petroleum.
According to JLL Research, there has been a significant buyer contest with investors pouring more than $1.8 billion into Australian service stations since 2016.
Mr McEvoy said, “During our marketing campaign for BP Manly we generated more than 200 inquiries. The significant interest indicates strong demand for secure and defensive assets within tightly held blue ribbon locations like Manly.”
Manly BP was completely redeveloped in 2019. The new service station features new tanks, lines, canopy, convenience store, bowsers and forecourt which also offers as on-site parking for eight vehicles and one disabled space.
The store is leased to Victorian-based fuel and convenience company Jasbe Petroleum and is under a new 12- year lease agreement attached with renewal options and fixed rental increases annually offering a year one net income of $295,000 + GST p.a.
Jasbe Petroleum own and manage more than 50 stores nationally under the BP brand.
Mr McFadyen said, “The Manly precinct on Sydney’s exclusive Northern Beaches is tightly held and opportunities to acquire investment property in this area are limited.
“The incoming owner has a secure income stream with long term development upside and future capital growth. BP Manly is a resilient investment given its prominent location and long-term lease agreement,” Mr McFadyen concluded.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.