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Private investors continue to be interested in 7-Eleven service stations and other street-side assets, with close to $250 million worth of properties sold in the past two years.
Most of the properties are on main roads and are operating petrol stations which offer high yields in a low-interest-rate environment.
Sales agents say auction rooms are always busy when this style of asset is offered.
The latest sale was a 7-Eleven at Revesby last Tuesday. It attracted bidding competition from a range of high-net-worth private investors and syndicates.
Acting for the 7-Eleven parent body, Jones Lang LaSalle's director of sales and investments for South Sydney, Michael Ajaka, sold the property to a private investor for $2.74 million, which was a net return of about 5.4 per cent after land tax.
Mr Ajaka said there was strong bidding for the property from four buyers at the auction.
"Service stations continue to be a blue-chip asset class, with long-term secure leases, solid returns and great appeal for private investors, with all outgoings paid by the tenant except land tax," Mr Ajaka said.
"We have received high clearance rates at all 7-Eleven auctions."
Over the past two years, Jones Lang LaSalle has sold, nationally, $215 million worth of 7-Eleven service stations and properties on behalf of the parent company. They were sold as lease-back investments.
Revesby 7-Eleven, at 295 Canterbury Road, is leased for a minimum of 15 years with three five-year options. It features strong lease covenants and is well-positioned in metropolitan Sydney.
The sale of the Revesby 7-Eleven concluded auctions for three 7-Eleven properties in May. Others to sell were: 439 Princes Highway, Carlton, which sold for $2.75 million for a 5.3 per cent net return after land tax; and, 35 Parramatta Road, Haberfield, which sold for $2.6 million with a net return of 4.3 per cent after land tax.
Mr Ajaka said low interest rates for lenders had created additional interest among bidders.
Investors say the attraction is not just the higher yields, but the looming prospect that some of the 24-hour properties will be used as delivery sites and collection points for internet purchases.
The flaw in buying online remains collection of the items, which is getting harder. Some banks and city centre businesses have banned staff from having personal purchases delivered, for security issues, and also because it clogs the mail room.
That has led to buyers returning to local post offices or relying on neighbours and friends to be at home to sign for delivered items.
In the US, internet giants Amazon and eBay are leasing traditional bricks-and-mortar stores as collection outlets. Amazon has also trialled lockers within 7-Eleven convenience stores for 24-hour collections for its customers.
Australia Post has announced plans to roll out its version of lockers that can be accessed at any time with a swipe card or a PIN code sent by an SMS message. The Australian Service Station Association said it would talk to its members about using their sites for the collection of goods bought online.