Ten new 7-Eleven stores in Sydney have been put up for auction, and are expected to provide yields of between 5% and 7%.
In September, investors will be able to bid for 10 new 7-Eleven stores that will be launched via auction. The new tranche of service stations with attached convenience stores are offered following the successful sale of similar stores in Brisbane and Sydney earlier in the year.
The previous two tranches of stores provide yields ranging from 5.6% to 7.7%, causing these combined retail and service stations to be highly sought after by commercial property investors.
Last year, more than AUD 90 million worth of refurbished 7-Eleven service stations with similar yield ranges were auctioned off, with self-funded retirees snapping up many of the units.
The properties were sold with new 15-year leases plus renewal options and guaranteed 4% fixed rent increases per annum. The 10 new Sydney units to be launched in September will also be sold under the same scheme.
The highest-earning service station in the new batch is a 1,688 sq m site at 336 Georges River Road in Croydon Park in Sydney's west, which has an annual rental of AUD 280,000.
The Roselands and West Ryde stations earn the lowest annual rent, at AUD 150,000 per year each.
Other 7-Eleven service stations are located at Berowra (the biggest site measuring 3,174 sq m), Bexley, Campbelltown, Glendale, Kirrawee, Rockdale, Roselands, Rozelle and West Ryde.
Jones Lang LaSalle (JLL) has been appointed as the marketing agent for the auction. Interested participants are advised to register their details with JLL.
The service stations are being sold under a sale programme by 7-Eleven following its May 2012 acquisition of 295 service stations from Mobil Retail.
Since acquiring the Mobil business, 7-Eleven has been converting the Mobil stores into 7-Eleven service stations with attached convenience stores.
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