Gympie service station sells for just over $5 million to the real estate arm of a global energy supplier

The Shell/Coles Express service station at 102 River Rd, Gympie, sold for $5.04 million.

VIVA Energy’s real estate arm has added another service station to its growing portfolio.

The listed company’s real estate investment trust paid $5.04 million for a Shell/Coles Express service station at 102 River Rd, Gympie, after a private treaty campaign by NAI Harcourt’s Michael Baker.

Mr Baker said he received three offers on the property and a Brisbane-based investor had it under contract.

He said when the deal fell through, Viva Energy REIT stepped in. “They were the natural buyer of the asset,” Mr Baker said.

“It’s the only Shell/Coles Express service station in Gympie and is ideally located right near Gympie’s busiest shopping centre.”

The five-year-old property covers 1831sq m with a 198sq m building leased to an Viva Energy subsidiary Shell with a 15-year lease starting in 2012 plus options. The deal realised a yield of 6.6 per cent.

Mr Baker said currently, regional service stations with an average weighted lease expiry of about 10 years were being sold on 6-8 per cent yields.

“This property generated large interest from self-funded retirees and investor groups and the yield compares favourably with yields currently on offer across other asset classes,” he said.