Service Station and Retail Investment – A Golden Opportunity at Golden Grove

1380 Golden Grove Road, Golden Grove

Investors have a golden chance to acquire a service station and retail investment in a strategic gateway location in the growing north-eastern suburb of Golden Grove.

McGees Property’s Yee Ng and Simon Lambert are marketing 1380 Golden Grove Road, Golden Grove via private treaty, with an asking price of $4.35 million that reflects a strong return of 6.5%.

The property comprises 557sqm of improvements including a service station with a brand-new 10-year lease until 2034 plus options, trading as a Mobil-X convenience station, as well as a retail component with a five-year lease until 2028 plus options to Aroma Pizza House. Total return is $282,660 net per annum.

It is on a large 2,052sqm site.

“We’re expecting interest from local and national investors looking for a chance to acquire a well-located, well-performing service station and retail investment with strong future prospects,” Ng said.

“This service station enjoys a prime strategic position with excellent visibility and accessibility, and is in a pivotal location as the last refuelling point for local residents and travellers before entering the Adelaide Hills, and the first stop when descending from them,” Ng said.

He noted that the South Australian government recently announced the rezoning of a large land parcel for residential use in Golden Grove, paving the way for around 500 new homes in the near future.

“This growth further enhances the area’s trade prospects for the operators and the security of tenancy for investors.”

Ng said the service station sector has shown remarkable resilience in the recent years.

“The fuel and convenience sector has become highly-sought after and is considered recession-proof, with assets typically offering long-term leases to resilient operators.

He added, “This property represents really good buying. It property offers a strong return for this sector and compared to eastern seaboard states, while national buyers will note there are no stamp duty and GST charges.”