Connect with us
Brisbane Property Management, Property Managment Brisbane, RPM Australia


Brisbane Service stations show investment potential



High-rise developer Ken Woodley is looking for more service stations to top up his personal Brisbane Investorinvestment portfolio.

With a long-term lease in place, the veteran Brisbane property player recently snapped up a newly-built service station at 2009 Sandgate Rd, Virginia.

The transaction reflects the continuing strong level of investment activity in the retail service station sector.

It is Mr Woodley’s third acquisition of a service station asset after shifting the focus of his investment portfolio from convenience retail centres.

His other purchases include a Woolworths Petrol at Kenmore and a Caltex in North Lakes.

“With shopping centres you’re dealing with multiple businesses and co-ordinating a number of tenants,” Mr Woodley said.

“But with the service stations I’m only dealing with one company for each of them. It’s absolutely trouble free.”
The Virginia service station was purchased on a yield of 5.75 per cent and Mr Woodley said he was achieving returns of up to 7 per cent from his other two assets.

Developed by Evans Long on a high profile 2843sq m site, it is leased to 7-Eleven on a 15-year lease plus four five-year options. The tenant is responsible for all outgoings, excluding land tax.

Savills’ Michael Harcourt, who negotiated the asset’s sale, said the agency’s Brisbane office had been involved with 10 service station investment and development site transactions over the past 12 months totalling almost $25 million.

“Investor demand for blue chip, long term-leased service station assets remains very strong,” he said.

“The lack of available stock coupled with record low interest rates has resulted in substantial yield compression across the country.

“But with the aggressive expansion of major fuel retailers — namely Coles Express, Woolworths, Caltex, 7-Eleven, Viva (Shell), BP and Puma — developers are actively seeking suitable sites to satisfy tenant demand and generate potentially substantial capital returns.”

According to construction activity analysts Cordells, there are 100 potential new or redeveloped service stations in Queensland that have been recently delivered or are in planning and development stage.

Mr Harcourt said the acquisition of the three service station assets by Mr Woodley followed his divestment of two retail convenience centres — Holland Place at Holland Park West in Brisbane’s inner southeast for $3.4 million, and the Sherwood Court in the city’s southwest for $3.9 million.

The sale of the site for the Virginia service station in October 2014 for $1.75 million to Evans Long also was negotiated by Mr Harcourt. It was sold with a lease agreement in place with 7-Eleven.

Mr Harcourt said the completed service station appealed due to its high-exposure main road location underpinned by a secure long-term lease.

“It is in a very prominent left-hand inbound location adjoining Virginia Golf Course on Sandgate Rd, one of the main arterial roads in Brisbane’s northern suburbs with an average of over 54,000 passing vehicles each day,” he said.

“The combination of the high-profile positioning, strategic inner Brisbane location, new construction and long-term lease presented a prime service station investment proposition.”


Article originally published by Phil Bartsch, The Courier Mail, 27/5/2016

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


QUT Buys $84m Kelvin Grove Office Building



QUT Buys $84m Kelvin Grove Office Building
Queensland University of Technology has snapped up an A-grade office tower in the heart of Kelvin Grove’s Urban Village.

The seven-storey building is a cornerstone building of the inner north Brisbane business hub and has gone unconditional to the main tenant, QUT, with settlement due in April 2018.

QUT leased 9,474sq m from the Queensland-based Cromwell Property Group in the building prior to the acquisition.

In an ASX statement Cromwell chief executive Paul Weightman said Musk Avenue had been a strong 10-year investment.

“Musk Avenue is another example of Cromwell’s ability to invest wisely and actively manage our assets. We continuously review our property portfolio to deliver optimal returns for our investors,” Weightman said.

At its half-yearly results in February, Cromwell announced pro-forma gearing of 38.9 per cent exclusive of the contracted sale of the property.

The office building comprises ground floor retail, six floors of office space and 217 basement carparks.

The 14,144-square metres of net lettable area is leased to QUT, Boral Resources and three ground floor retail tenants.

The building has a 5-Star Green Star Rating and a 5.5-Star NABERS Energy Rating.

On Thursday, Singapore-based ARA Asset Management Limited picked up a 19.5 per cent stake in Cromwell in a deal worth $405 million.

Originally Published:

Continue Reading


Iconic Queensland Pub the Normanby Hotel Up for Sale



Iconic Queensland Pub the Normanby Hotel Up for Sale
One of Brisbane’s iconic pubs, The Normanby Hotel, has hit the market for the first time in nearly twenty years with price expectations north of $20 million.

Located at the high profile Normanby Fiveways in inner-Brisbane’s Red Hill it has been co-owned by Michael Dempsey and Otto Wilhelm since 1999.

Built in 1890, the heritage-listed hotel consists of an enormous 3,655 square metre site incorporating the multi-level heritage listed pub and a huge car park. It was added to the Queensland Heritage Register in 1992.

Dempsey said he was selling the hotel in order to concentrate on his core business of property technology through real estate property management software, Console.

He sold his electronics payments business Ezidebit for $305 million in 2014.

The Normanby Hotel freehold and pub operation is being offered for sale by CBRE Hotels.

“The hotel boasts huge underlying value with 35 gaming machines on site offering significant gaming upside potential,” CBRE Hotels’ Queensland director Paul Fraser said.

“On top of this, the prime location of the hotel and the huge expanse of land this asset offers makes it an obvious development play in the future.”

In 2016, a proposal by The Normanby Hotel to build a 15-storey development and underground nightclub next to the hotel was rejected by Brisbane City Council’s City Planning Committee.

The building, which would have contained 14 units, a hotel, short-term accommodation, a nightclub and a shop, was planned to be built on the Normanby Hotel’s car park. The committee voted unanimously in favour of opposing the plans on the basis of the height and size of the proposed hotel tower.

The Normanby Hotel also used to house one of Brisbane’s most well-known trees, a 100-year-old fig tree, that had to be removed from the site in 2016 after a severe storm knocked it over.

Originally Published:

Continue Reading


Sydney to Hobart veteran Peter Harburg selling remaining $150m properties



Sydney to Hobart veteran Peter Harburg selling remaining $150m properties Read more: Follow us: @FinancialReview on Twitter | financialreview on Facebook

Sydney to Hobart sailing veteran Peter Harburg has made a call to sell two of his last major office towers in Brisbane worth well over $150 million, including Westpac’s local headquarters.

Mr Harburg, who has completed 12 Sydney to Hobart races in the famous Blackjack yacht, said the market was strong and that influenced his decision to sell out.

“I’m 76 now and I think it’s time to start doing more important things like sailing boats and driving cars,” Mr Harburg told The Australian Financial Review.

“The market is very strong at the moment – it’s a supply and demand thing and at the moment the demand is very strong and this has certainly helped influence the decision to sell.”

Peter Harburg on his boat Blackjack. "I'm 76 now and I think it's time to start doing more important things like sailing ...

Peter Harburg on his boat Blackjack. “I’m 76 now and I think it’s time to start doing more important things like sailing boats.” Glenn Hunt

Mr Harburg acquired a number of Brisbane office buildings over the years, including 50 Ann Street which he has since sold for $131.8 million to Asian group Capital Trust and 348 Edward Street Brisbane which he sold to US property group Hines for about $50 million.

Now his private investment company Harburg Investments has appointed CBRE’s Bruce Baker, Tom Phipps and Flint Davidson to steer the sale of his remaining CBD assets – 260 Queen Street and 95 North Quay – with the assets to be offered either as a portfolio or individually.

Mr Baker said the campaign was expected to attract significant interest given that both properties were extremely well located and offered different income streams and capital-related outcomes.

“Last year was a very active year for the Brisbane office investment market, with new investors and foreign capital attracted by the comparatively attractive yield spread to Sydney and Melbourne,” Mr Baker said.

“A well-researched consensus is that Brisbane offers net effective rental growth going forward over the next five years, with Brisbane having become the second fastest growing white-collar employment market in the country.”

The boutique A-grade building at 95 North Quay, in Brisbane's legal precinct, is predominantly occupied by barristers ...
The boutique A-grade building at 95 North Quay, in Brisbane’s legal precinct, is predominantly occupied by barristers and legal professionals and provides a current net lettable area of 8710sq m. Supplied

Key drawcard

The agents describe the tower at 260 Queen Street – occupied by anchor tenant Westpac since it was constructed – as an “iconic core office asset and arguably Brisbane’s best located asset”.

The building has a net lettable area of 13,300 square metres and offers large 1000sq m podium floor plates with 20 high-rise floors above.

A prime retail amenity is located on the ground floor, the majority of which is occupied by Westpac as a retail banking chambers.

“The building’s super prime Queen Street location near Central Train Station and the Queen Street Mall shopping precinct will be a key drawcard for prospective purchasers and tenants alike,” CBRE’s Mr Phipps said.

“There is existing development approval for a glass box-style podium refurbishment as well as the potential to extend the existing floor plates and/or reconfigure the retail space.”

The boutique A-grade building at 95 North Quay, in Brisbane’s legal precinct, is predominantly occupied by barristers and legal professionals and provides a current net lettable area of 8710sq m.

“While the building is currently 58 per cent occupied, there is a clear opportunity to ‘re-set’ the asset to capitalise on Brisbane’s improving occupier market,” Mr Phipps said.


Originally Published:

Continue Reading

Make your Super Work

smsf property investment smsf borrowing

Positive Cashflow

duplex designs, dual occupancy homes

Investment Property Advice

investment property calculator successin property