Refurbished and re-leased Shell service station sells for more than double what the vendors paid for it

Synergy Partners have made a healthy profit after refurbishing and negotiating a long-term lease on a Shell service station at Marsden.

The Shell service station at 36 Chambers Flat Rd, Marsden, sold for $7.17 million..

A REFURBISHED and re-leased service station with a new Hungry Jacks outlet sold for more than double what the vendors paid for it three years ago.

A Sydney-based investor paid $7.17 million post auction for a Shell service station at 36 Chambers Flat Rd, Marsden, south of Brisbane, in a deal by Burgess Rawson’s David Ingram and Dean Venturato.

The transaction was struck on a yield of 6.01 per cent.

Mr Ingram said the vendor, Synergy Property Partners, bought the 3500sq m asset in 2014 for $3.125 million with Shell having one year remaining on the lease. At the time the sale realised a yield of 8.62 per cent.

Synergy signed Viva Energy (Shell) for a new 15-year lease, demolished the car wash and built a new Hungry Jacks which is on a 13-year lease.

Mr Ingram said the auction campaign produced 98 inquiries and Burgess Rawson issued 19 contracts on the property.

“It has gone from an old Shell with steel tanks and a car wash to a brand new state of the art service station asset with a Hungry Jacks,” he said.

“It was a real value add situation.”

The property is opposite the Coles anchored Marsden Park Shopping Centre and near McDonald’s, KFC and Aldi.