MAB’s West Gate sells for $22.5 million

MAB Corporation has sold a state-of-the-art service station and convenience store complex on Melbourne's West Gate Freeway for $22.5 million, the largest sale of a petrol station anywhere in Australia for more than 10 years.

The sale reflects a 5.5 percent yield.

The property was sold by Savills Chris Jones, Clinton Baxter and Ben Hegarty, in conjunction with Dawkins Occhiuto's Andrew Dawkins and Walter Occhiuto.

They said the marketing campaign generated strong international and local interest, with the purchaser a Melbourne based private investor.

"In addition to numerous local bids, we also generated multiple offers from Asia and Europe, with purchasers particularly driven by the property’s enviable and unique position on the West Gate Freeway, one of Australia’s busiest roads," Chris said.

"It was an opportunity that rarely comes to market and unlikely to be repeated given the dearth of similar sites and properties offering such strong locational advantages."

Clinton said investor interest was also driven by the state-of-the-art facility and the first rate tenancy profile offering stable long-term cash flow.

"The property offered investors a brand new state-of-the-art facility with maximum depreciation benefits to complement the strong income from A-grade tenants Shell, Hungry Jacks and Red Rooster."

"It really ticked all the boxes of a superb commercial investment,’’ he said.

The property at 62 Cook Street, Port Melbourne was constructed and opened earlier this year.

Walter Occhiuto said the property was sold subject to leases to Viva Energy Australia (Shell/Coles Express), Hungry Jack’s and Red Rooster on 15 year terms, for a total net income of $1.41 million.

The brand new complex comprises nearly 700 sqm of buildings, 1200 sqm of canopy and 57 parking spaces on a large 10,000 sqm site.