652-656 Torrens Road, Pennington
A blue-chip, high-profile fuel asset leased to national service-operator, United Petroleum in a metro Adelaide suburb has hit the market.
McGees Property’s Michael Dimasi and Ross Christodoulou are marketing the United Petroleum fuel and retail convenience offering at 652-656 Torrens Road, Pennington on behalf of a private South Australian investor.
Expressions of Interest close Thursday, 16 October at 4pm.
On a prime 2,987sqm corner site with 141m of combined frontage, the property has a long-term lease to major national operator United Petroleum Pty Ltd – one of Australia’s largest independent fuel retailers with circa 500+ sites nationally – running to November 2033 with six five-year options to renew until 2063, and a current WALE of 8.2 years. There is also a Pie Face on-the-go bakery and car wash facilities on the site.
Current estimated net income is $242,300 per annum. The lease structure sees the tenant responsible for usual outgoings including insurance, statutory outgoings, repair and maintenance, with fixed annual increases of 2.50% per annum and a market review upon renewal.
“This is an exceptional opportunity to secure a blue-chip, high-profile, national service-operated commercial asset,” Dimasi said.
“Fuel station assets have proven to be remarkably resilient in recent times. We’re expecting really strong interest from investors given the set-and-forget nature of the asset, stamp duty exemption, at an affordable price point compared to similar assets in metro locations across Australia.
“It’s a rare chance for investors to secure a quality covenanted asset at this level in a metro location that’s really booming.”
Pennington is an up-and-coming suburb just 12 kilometres north-west from the Adelaide CBD, with a median house price that has surged by 13.6% in past 12 months to $800,000.
“The highly recognisable, national brand will bring great confidence to the market of the quality of the tenancy covenant, and Pennington’s growth offers excellent trade prospects for the asset,” Dimasi said.
The property is located within the City of Charles Sturt and zoned Local Activity Centre, and has a population of more than 120,000 and an economic output of $16.315 billion.
Christodoulou said the property is strategically located on busy Torrens Road, in a high-exposure position at the corner of Burleigh Avenue and the intersection of Cheltenham Parade and Addison Road.
“This asset is ideally positioned to capture busy traffic in Adelaide’s growing north-west.”
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