05 Apr 2018
A NEWTOWN service station site is expected to attract interest above $1.5 million when it goes to auction this month.
The 2086sq m property at 404-408 Shannon Ave, Newtown, is a prime corner site occupied by a Caltex service station (leased through Bonney Energy), a Subway restaurant and a Muzz Buzz drive-through coffee outlet.
Darcy Jarman, Geelong West agent Tim Darcy said the site was being sold as a property with an ongoing income stream.
“It’s a site that for a long time housed a Caltex service station under the Chisholm Petroleum banner, which sold out to the Bonney Energy and Subway and Muzz Buzz, so it is being sold as a property with an income,” he said.
“It’s also an opportunity to occupy,” he said.
Mr Darcy said the property generates an annual income of more than $93,000.
“There is some good opportunity for growth in the rental profile.
“So there is an upside there for someone to derive an income,” he said.
Market reviews for rentals fall due in March 2019 for Bonney Energy, in May 1919 for Muzz Buzz and September 2020 for Subway.
Mr Darcy said placing a value on the property was a difficult task because of its nature.
“This has got an income,” he said.
“The land area is considerable. I think this has a real intangible quality in terms of value,” he said.
The last service station site to sell in the area was the redeveloped United Petroleum leased centre at 30-306 Aberdeen St, Manifold Heights.
That service centre was sold with a 20-year lease with further options to 2061 with the independent fuel retailer for $5.61 million in 2016.