Three Townsville servos sell for millions at Burgess Rawson’s auction event

Townsville’s commercial property market remains a key focus for southern investors who snapped up three service stations at a recent auction. See how much they sold for.

Three Townsville service stations in Rosslea, Garbutt and Mount Louisa have sold at a recent auction. Pictures: Supplied.

Like a moth to the flame, Townsville’s commercial property market continues to attract southern investors, with a recent auction seeing a Mount Louisa listing achieve the highest sale price.

Taking place earlier this month in Brisbane, Burgess Rawson’s Portfolio Auction event 170 was a resounding success, recording a jaw dropping $131.133 million in sales, with three out of the three Townsville commercial properties selling.

Burgess Rawson partner Neville Smith was delighted to see 450-456 Bayswater Rd’s fast food and convenience retail outlet, which is leased to United Petroleum, Red Rooster and Domino’s, sell for $7.8 million, reaching the highest price achieved on the day.

The purchaser couldn’t resist a proven high performing convenience retail and drive-through fast food centre, which boasted three national tenants on long term leases and brought in an annual income exceeding $572,000.

Burgess Rawson commercial agents Michael Hooper and Neville Smith have celebrated the auction sale of United Petroleum, Red Rooster & Dominos for $7.8m. Picture: Supplied.

The Caltex service station with a Night Owl at 77-79 Bowen Road, Rosslea, transacted for $3.04 million, while the soon-to-be rebranded from Puma to Caltex service station and industrial depot at Bolam St, Garbutt, also sold for $2.881 million.

Mr Smith said investors were gravitating towards North Queensland because they were looking for locations underpinned by strong economics, and were also seizing on assets that were high performing in their own right, with long term lease security.

Caltex Australia Convenience Retail Investment at 77-79 Bowen Street, Rosslea sold for $3.04 million. Picture: Supplied.

“We’ve been able to provide some exceptional results for our owners … with some of the yields that we’re achieving,” Mr Smith.

“Those yields that have traditionally been in South East Queensland or New South Wales and Victoria, haven’t been able to be achieved into North Queensland, in my time in the industry, until now (with) good quality leased investments.”

He said it was the long term prosperity of the North Queensland economy that was the biggest selling feature.

The Caltex Australia Convenience Retail at 25 Bolam St, Garbutt sold for $2.881 million. Picture: Supplied.

“A lot of these buyers are looking at stability in these geographical locations, and the blue chip assets, the ones that they’re chasing, that’s the ones that are attracting the bids and attracting the tight yields,” he said.

“There’s not an investor that we talk to that aren’t aware of what’s going on in this region, and … they’re very supportive of what’s happening in our backyard.”

Originally published as Three Townsville servos sell for millions at Burgess Rawson’s auction event