7-Eleven stores up for auction
Commercial property investors may be interested in the auction market's latest listing - ten renovated Sydney 7-Eleven service stations with accompanying convenience outlets.
According to Property Observer report, the stores have proven to be a lucrative investment for keen buyers, with two tranches sold under the hammer this year in Sydney and Brisbane achieving yields between 5.6 per cent and 7.7 per cent.
The commercial real estate may appeal to buyers looking for a safe investment, with each store coming with a 15-year lease, plus renewal options, and a four per cent fixed rent increase each year guaranteed.
More than $90 million worth of the renovated combined retail and service stations sold nationally last year, with the investments proving popular with self-funded retirees.
The lowest earning stores are Roselands and West Ryde - both collecting an annual rent of $150,000 each.
At the other end of the scale, the biggest earner is the Croydon Park station located in Sydney's west, bringing its owners in an annual yield of $280,000.
In April, a tranche of six 7-Elevens were sold in Queensland, fetching prices of $1.5 million for a north Brisbane store, and $2.35 million for 3,700 sq m service station in Springwood.
The store sales are part of a program launched by the service station after it acquired almost 300 stores from Mobil Retail in 2010.