Torquay servo site exceeds expectations

AS HUNGRY investors look to the regions to expand their portfolios, the Torquay Viva Energy Shell service station and Mycar service centre has sold for $8.355 million on a yield of 4.89 per cent.

The freestanding property at 20 Winki Way in Torquay was tipped to fetch between $7-7.5 million at Burgess Rawson’s Investment Portfolio Auction on Wednesday and after 105 bids the property easily surpassed this.

Burgess Rawson said that the asset was poised for further growth, with the Surf Coast experiencing a surge in population growth as new residents flood the region in the wake of COVID-19.

Along with 10-year leases to Viva Energy and German-owned Continental AG/Mycar, with further options to 2049, the new purchaser of the 4,001sqm corner site will benefit from significant depreciation benefits on the 2019-built property, along with the 50% stamp duty savings now available on regional assets.

The site has an estimated net income of $408,840 per annum, which includes soon-to-be-completed restaurant The Diner.

Burgess Rawson Melbourne director Raoul Holderhead said the overall results at their Investment Portfolio Auction were extraordinary, achieving $5.35 million above reserve and yields as low as 4.24 per cent.

“Interest in commercial property has been nothing less than remarkable this year,” Mr Holderhead said.

“Compared to last year, our enquiry levels were triple and that pent up demand resulted in great results in the auction room.
“We estimate that the buyer pool was $510 million which means current demand outweighs supply more than seven and a half times.”
“A highlight sale included the Viva Energy fuel station at Torquay, which eventually sold for $8.355 million.

“This particular Torquay property attracted interest from across Melbourne but also Sydney and Brisbane as well as Singapore with Melbourne based investors ending up securing the property.”

Across the portfolio, 215 people registered to bid with interest across Australia, as well as India, New Zealand, Singapore, Hong Kong, China and the US. Bidding was available via phone, online and in-person at Crown Melbourne with more than 20 percent of bids received online.