Hong Kong company, New Sky Development Limited, which has operated for more than 30 years, has secured a 12.02 hectare DA approved service station site located at Lot 1/585 River Avenue, Merbein South in Victoria.
The deal was struck by RE/MAX Commercial’s Deepen Khagram who said potential buyers appreciated that the massive land parcel on two titles was in a strategic corner location with approximately 500 metres of Sturt Highway exposure, and eight kilometres from central Mildura.
The sale price was $1,100,000 via an expression of interest campaign, which Mr Khagram said was well-received with a total of 113 enquiries.
“The potential as a service station site, with DA approval in place, was a draw card, for sure.”
He said the already well-established appeal of service stations had increased as an outcome of the pandemic.
“Covid shone light on ‘essentials’ and investors have really targeted essential retailers, such as service stations, because they continued to operate and be important during lockdowns.”
He said service stations were often underpinned by national tenant covenants and strong rental.
“Service stations in strategic locations, with quality tenants on long leases and providing good returns are at the top of commercial investors’ wish lists as they naturally seek a risk-adverse sector that provides secure and stable incomes and long-term capital growth prospects.
“The essential service sector, including service stations, also gives investors an alternative to current low-yielding cash investment opportunities, volatile share market returns and less-predictable residential investment opportunities.”
Mr Khagram has negotiated five service station assets to date since the start of 2021 for a total value of more than $18 million and has three to settle in December this year bringing the total to just under $23 million. Another Queensland property is scheduled to go out to the market early next year.
Two Moranbah sites are among those settling next month. United Petroleum has a lease on 40 Bacon Street to 28 Jan 2025 with option of two five-year periods to follow. This national tenant’s lease on 79 Mills Avenue also extends to 28 Jan 2025 with a three by five-year option.
A 1.77-hectare development site in Farnborough, an expanding residential growth area of Yeppoon, which has DA approval for a service station, childcare and retail, is the third to settle before the end of this year.
Mr Khagram’s commercial real estate reach goes beyond service stations, existing or sites with DA approval. He will have sold in excess of $35.5 million in commercial real estate, including childcare centres, shopping strips, retail and development sites from June 2021 to December 2022.
His company, QCommercial Properties Pty Ltd, teamed up with RE/MAX five years ago to bolster their commercial presence in many sectors of the commercial property market, especially service stations and development sites.
Peter Lunney joined QCommercial Properties four years ago with more than 30 years of experience in the fuel industry, having held senior property roles in Caltex (now Ampol). Mr Khagram, himself, has owned and operated service stations since the age of 19.
Their dynamic partnership of skills and experience in the sector has created unique and specialised expertise for owners, developers and buyers of petrol stations and related development sites.
Media contact:
Lyn Cox, RE/MAX Australia public relations – M. +61 0418 793 096
About RE/MAX: From a single office that opened in 1973 in Denver, Colorado, RE/MAX® has grown into a global real estate network with over 140,000 agents in more than 110 countries and territories. Its entrepreneurial culture affords its agents and franchisees the flexibility to operate their businesses with great independence.
