Beachfront Shell service station listed for sale

February 11, 2021 BY

Director of Rrtail Iivestments at JLL Vic Tom Noonan, says significant local and national buyer interest is expected in this prominent Lorne site.

Lorne is the jewel in the crown of the Surf Coast’s holiday destinations and one on the most popular resort towns on Australia’s coastline.

Tourists, visitors and holidaymakers flock to Lorne at weekends and during peak periods to see the town of just over 1,000 locals swell to over 10,000 people.

The lifeblood of this of this town has always been its local servo which is now being brought to market by JLL Retail Investment, a world leader in real estate services which has been recognised as one of the 2020 World’s Most Ethical Companies.

Located in Lorne on the famous Great Ocean Road, this prominent 1,160sqm site sits on the corner of Mountjoy Parade and Grove Road, directly opposite Lorne surf beach and Sea Baths.

JLL Retail Investment team, Tom Noonan, Stuart Taylor, and MingXuan Li have been appointed to sell Shell Lorne, which is expected to attract significant local and national buyer interest given the rarity of the site and the prime beachfront location.

Lorne has long been a popular tourist and holiday destination and has in recent years seen a sharp increase in permanent population from sea-changers moving from Melbourne.

As a result, Lorne experienced one of the highest house price growth among regional Victorian suburbs – jumping by nearly 25 per cent in the year to September 2020 according to the latest Domain House Price Report.

The property is secured on a 12-year lease until 2025, plus one further six-year option expiring in 2031, and returns a net rent of approximately $176,000 p.a.

“Shell Lorne is a strategic landbank that provides an extremely rare opportunity to secure the last major undeveloped corner in the main street of Lorne,” Mr Noonan said.

“The ability to secure a beachfront site of this scale withholding income and long-term development upside will never be repeated,” Mr. Taylor added.

Service station and convenience retail investments continue to be highly popular with investors seeking secure income streams from essential service tenants.

“Over $450m of freehold service station investments transacted nationally in 2020 showing the continued demand for the asset class despite the uncertain economic environment,” Mr Noonan said

The property is being offered via an expression of interest campaign which launched on January 27, 2021.