The Illawarra’s increasing popularity among commercial property investors seems set to continue into 2019.
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A service station property will go under the hammer at Burgess Rawson’s December Portfolio Auction in Sydney.
The property is located at 38-40 Princes Highway, Unanderra.
The business is not for sale, but the site is.
It is currently tenanted by Westside Petroleum and Energy Australia.
Burgess Rawson are sales agents specialising in tenanted investment property.
Burgess Rawson sales director Michael Gilbert said they had sold more than $30 million worth of commercial property in the Wollongong area in 2018.
Mr Gilbert said Wollongong was becoming an increasingly desirable location for commercial property investors.
He said investors being driven out by the low yields in Sydney were now seeking value, and seeing it in the Illawarra. “Your dollar just goes that much further,” Mr Gilbert said.
“People are taking it increasingly seriously as an investment market, (even as) prices have moved up markedly in the Illawarra.”
He said a lot of investors who can’t find a significant return in Sydney were “now looking at the Illawarra with fresh eyes”.
“We’ve also seen a steady flow of buyer interest in the region which can be attributed to the forecasted population growth and busy international ports,” he said.
The Unanderra site is on a 10-year lease until 2026, with five lots of 10-year options to 2076.
It has a net income of $327,725 per annum plus GST.
“With two committed, prominent tenants paying all the outgoings and this highly desirable location, this really is the perfect commercial investment to complement any portfolio,” Mr Gilbert said.
Mr Gilbert said both the property’s premium tenants on secure long-term leases and prime Princes Highway location is sure to attract significant investor interest.
“ASX listed Viva Energy recently purchased 50 per cent of the tenant company after an extensive due diligence process,” he said.
“The $15.5 billion energy giant is an exclusive licensee to Shell service stations and has been supplying high quality fuels for over 100 years.”
The property will go to auction at Burgess Rawson’s December Portfolio Auction on Tuesday, December 4 at Dolton House in Sydney.
Brendan Crabb
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
I'm a member of ACM's national property team, covering the Illawarra and South Coast. Based in Albion Park, NSW, I write about exciting, interesting or just downright quirky properties that have been listed for sale, major sales, market trends, auctions and more. One of my favourite aspects of being a journalist is I believe everyone has a story to tell. What's yours?
