‘The Gateway Centre’ Port Macquarie, a significant regional highway service centre is coming to market, presenting investors with an opportunity to secure an asset 400 metres from Sovereign Hills, a burgeoning residential development in Port Macquarie.
JLL’s Nick Willis, Dylan McEvoy & Sebastian Fahey together with Burgess Rawson’s Darren Beehag, Jamie Perlinger & Yosh Mendis have been appointed to sell Port Macquarie Service Centre via an Expressions-Of-Interest campaign.
The investment is situated on a commanding 4.3-hectare main road landholding in Port Macquarie, on the southbound corner of two of NSW’s busiest arterial roads on Australia’s East Coast, the Pacific Highway & Oxley Highway.
The proven nondiscretionary asset is underpinned by strong performing national tenants including BP, McDonald’s, KFC, Guzman Y Gomez, Oliver’s, and NRMA EV Charging Station which combined generate a net income of approximately $1.72 million per annum. The site is fully leased however, provides significant value-add opportunity via a potential to develop additional pad sites, support further income growth (STCA).
Mr McEvoy said, “Positioned within Australia’s largest and most diverse regional economy, this is the first time the property has been marketed for sale in over 25 years. Investment opportunities like the Port Macquarie Gateway Centre seldom come to market, given the demand that exists for service station and roadside retail assets.
“This is an exciting opportunity to secure a well-positioned major highway service centre that boasts some of the strongest fuel and food tenants within the market. This asset is set to capitalise on booming domestic tourism on NSW’s Mid North Coast, coupled with a neighbouring multi-staged residential development precinct that is underway to cater to the growing residential demand to the area,” said Mr McEvoy.
The site recently underwent a $5 million redevelopment, demolishing the old BP to make way for a new service station tenancy with 50% more fuel capacity and Electric Vehicle charging station. The property offers strong depreciation benefits to complement a passive and secure income stream to the incoming owner.
Mr Willis said, “The Port Macquarie service centre offers an exceptional investment proposition, boasting a highly defensive tenancy mix of service station and convenience retail, adjoining a residential estate.
“Service stations and roadside retail assets with strong income security have maintained their value throughout the pandemic, with the convenience retail portion of the service station revenue model becoming increasingly important in recent years. We anticipate high levels of interest from institutional investors, syndicates, private funds and high net worth investors.” said Mr Willis.
Mr Beehag said, “The reporting season saw major fuel and fast-food retailers announce huge increases in profits, up by as much as 158% between 2020 and 2021. Instead of holidaying overseas, Australians are hitting the road… and property investors are following the cue.”
Mr Perlinger said, “The strong performance of BP, McDonald’s and KFC, as-new fuel station improvements and EV chargers tell you this facility is built for the future. Buyers are already recognising that.”
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