50 Middleborough Road, Burwood East has been sold at auction for $2.8 million.
The petrol station site occupies a high exposure location and is part of a larger complex known as Burwood Heights Shopping Centre. Woolworths have been in occupation since the commercial property site was developed in 2003 and the current Lease only has a little over 2 years remaining (as of 2016) , but with 3 further Option terms.
Our marketing efforts generated a significant level of interest from a mix of local and offshore investors attracted by the somewhat affordable price point for a retail investment with a lease covenant as strong as Woolworths Limited and the evolving and well regarded positioning.
Two Chinese investors contended for the property which pushed the price to $2,800,000, some $500,000 above the reserve. The low yield of 4.1% is considered to be one of the strongest results achieved for a service station asset in Australia of late, particularly given the strata title nature and short remaining Lease term. Yields for this asset class have typically been in the range of 4.9% to in excess of 6.00%.