Bushland Beach 7-Eleven service station sells for $5.45m to southern investors

Southern investors are making a beeline to NQ, jumping on quality commercial properties like Bushland Beach’s 7-Eleven servo, which sold for a whopping amount. See how much.

Colliers Managing Director Peter Wheeler outside the Bushland Beach 7-Eleven. Picture: Shae Beplate.

A shortage of stock has been revealed as a factor why Townsville’s commercial properties are being snapped up by savvy investors, like the multimillion-dollar purchase of the 7-Eleven service station at Bushland Beach.

Built by the Brisbane-based Griffith Group in December 2022, the 7-Eleven sits on a high exposure 3545sq m freehold site, at the corner of Mount Low Parkway and Lynwood Ave, directly opposite the Coles-anchored Bushland Beach Shopping Centre.

Colliers managing director Peter Wheeler said the property was appealing for investors given that 7-Eleven signed a 12-year lease to 2034, with four further five year options to 2054.

The property has a net income of $340,000 per annum, plus GST, with fixed 3 per cent annual rent increases locked in.

The property was sold off market by Colliers Townsville for $5.45m to an unnamed Sydney-based investor, representing a “strong yield” of 6.23 per cent.

Inside the 7-Eleven service station at Bushland Beach. Picture: Colliers.

“They know Townsville, and have confidence in the city having invested and owned commercial property here previously,” Mr Wheeler said.

“Down in Sydney where they come from, that yield would be 4 per cent. That’s why they head to the regions, to sort of chase those bigger yields.”

He said the lease covenant was a big drawcard, as was the 250sq m of vacant land available for future redevelopment, and the property being a brand new build in a rapidly developing corridor.

“It’s really become a lot more popular as a beachside suburb for renters and homeowners alike, and the service station’s trading very well off the back of that,” he said.

Inside the 7-Eleven service station at Bushland Beach. Picture: Colliers.

The property was also boosted by future commercial and residential developments, including a childcare centre, swim school and residential subdivision.

“It’s a good example of southern investors having the confidence in regional cities like Townsville to invest their money,” he said.

“We have seen a slowdown in sales volume compared to the last couple of years where it was very strong.

“It’s not just because interest rates are increasing (why sales have slowed), it’s because we’ve run out of good investment stock, so if you bring a property like this one to the market, it will get snapped up.”

With the city thriving in the critical mineral and green energy space, and plenty of projects on the horizon, Mr Wheeler said there was much for investors to like about Townsville’s story.

Originally published as Bushland Beach 7-Eleven service station sells for $5.45m to southern investors