Jones Real Estate, in conjunction with Stonebridge Property Group, has concluded the off-market sale of 1110 Koo Wee Rup Road, Pakenham for $14,000,000, marking one of the South East’s strongest service centre transactions of the year.
Anchored by BP and KFC, the high-performing service centre occupies a strategic 10,624.5sqm* landholding with 114m* of prime frontage to Koo Wee Rup Road. The fully leased asset sold on a sharp 5.61% yield after attracting extensive interest from both local and offshore investors. The property was ultimately secured by a private investor.
Welcoming over 20,000 vehicles a day, the site’s prime position, the first service centre off the Princes Freeway and opposite Southeast Business Park, underscores its enduring value and rock-solid fundamentals
Koo Wee Rup Road remains the suburb’s key arterial, linking its expanding residential community with major industrial and employment hubs. Its role as the primary connector between these catchments continues to elevate the prominence and long-term positioning of assets along the corridor.
Luke Peric, Associate Director at Jones Real Estate, said the sale highlighted sustained demand for high-performing, convenience-based investments in Victoria’s growth corridors.
“Service centres backed by national operators continue to draw deep competition, especially in locations experiencing significant population and commercial expansion. Investors are increasingly seeking secure, essential-service assets, and this property ticks every box,” he said.
Leasing demands in the Pakenham corridor has accelerated significantly in recent years, reinforcing the appeal of essential-service assets like this service centre.
Pakenham is fast emerging as one of Melbourne’s strongest growth corridors, with the 630-hectare Pakenham East Precinct set to deliver over 7,000 new homes and 1,400 jobs. While Costco is set to open its $74m superstore by 2027 and major industrial and logistics expansion including the Cardinia Logistics Estate and Cardinia Business Park is driving significant commercial traffic along Koo Wee Rup Road, major infrastructure upgrades are also enhancing connectivity and accessibility.
Pakenham’s population currently sits just over 85k and is forecast to grow to 83k by 2041. Koo Wee Rup Road remains the suburb’s key arterial, linking its expanding residential community with major industrial and employment hubs.
The transaction was negotiated by Jones Real Estate’s Luke Peric and Tim Spargo, alongside Stonebridge Property Group’s Rorey James and Kevin Tong.
For more details, please visit https://www.jonesrealestate.com.au/.
For more details, please visit https://stonebridge.com.au/.Â
*Approximate
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