Costi Cohen facilitates the off-market acquisition of a brand-new 7-Eleven service station Wilsonton Toowoomba Queensland for $5,135,000 reflecting a 6.00% net yield underscoring the growing sophistication of private investors targeting fuel and convenience retail.
While childcare centres, fast food outlets and large-format retail continue to dominate commercial property headlines, a quieter asset class is gaining serious traction among sophisticated investors: service stations.
source:commo.com.au
Costi Cohen recently facilitated the off-market acquisition of a 7-Eleven service station in Wilsonton, Queensland, on behalf of an investor client for $5,135,000 — reflecting a 6.00% net yield and a net passing income of $308,080 per annum plus GST. The transaction highlights the growing appeal of well-structured service station investments in an increasingly competitive market for quality commercial assets.
The Wilsonton asset presented a rare convergence of investment-grade characteristics at an accessible price point — a combination that is becoming increasingly difficult to source in today’s market.
“Opportunities of this calibre are increasingly difficult to secure. A national covenant, long lease term, modern construction with fibreglass tanks and fixed annual increases within a growing region represent the core criteria for investors — rarely found together at this price point.” Senior Associate of Costi Cohen, Sasha Rodriguez told COMMO.
7-Eleven is Australia’s #1 convenience retailer, operating a network of more than 760 stores nationally. In a significant endorsement of the brand’s global standing, 7-Eleven Australia was recently acquired for $1.71 billion by 7-Eleven International LLC — a parent entity that operates more than 48,000 sites worldwide. The corporate lease covenant underpinning this investment represents one of the strongest available in the Australian convenience retail market.
The property occupies a prominent 1,779 sqm* corner site at 415 Bridge Street, Wilsonton, with approximately 80 metres of frontage to Bridge Street (Warrego Highway) — a major arterial road connecting Toowoomba’s western growth corridor. The asset is seamlessly integrated as a freestanding pad site within the Wilsonton Shopping Centre precinct, a dual-supermarket and discount department store destination.
Surrounding national retailers and operators include:
COLES
KFC
HUNGRY JACKS
DAN MURPHY’S
PETBARN
STARBUCKS
GUZMAN Y GOMEZ
In an environment where yield compression has made it harder to find assets that deliver across every investment metric, well-located service stations leased to national operators are drawing increasing competition from both private and institutional buyers. Assets combining a corporate covenant, long-dated lease security, fixed rental growth, modern construction and a net lease structure at this price point are becoming a rare find.
Investor demand for quality service station assets continues to strengthen, though Costi Cohen notes that careful qualification remains essential. Not every service station investment delivers the same calibre of fundamentals. Distinguishing between quality assets and those carrying hidden environmental, structural or locational risk requires specialist market expertise.