Surge in Investor Demand for Essential Retail Sees Oasis Service Centre Sold for $9.65M

Colliers fields more than 109 inquiries for rare high-profile offering fronting the M1 in the Brisbane-Gold Coast growth corridor

The Oasis Service Centre, a high-profile retail convenience and service centre in the Brisbane-Gold Coast growth corridor, has been sold for $9.65 million following an expressions of interest campaign undertaken by Colliers.

The property, which was placed on the market by interests associated with developer Robert Badalotti, has been transacted to an undisclosed private investor with a yield of 6.13 per cent, highlighting the strength of the tenant mix and a competitive sale process.

Located at 3765 Pacific Highway in Slacks Creek, the commercial holding comprises a total of eight tenancies, anchored by blue-chip tenants BP Australia and a Zarraffa’s Coffee Drive-Thru and flanked by specialty tenants and an internal food court, boasting a significant site area of 6,004sqm.

Colliers Investment Services agents Hunter Higgins and Steven King fielded more than 109 inquiries from prospective buyers from the expressions of interest campaign which was launched in January.

Colliers Gold Coast Director-in-Charge Steven King said “The level of inquiry received for this property was exceptional, and not totally unexpected given that the offering is quite rare in the current market”.

“The response from the expressions of interest campaign and the price secured reflects the strength of high-exposure commercial assets in key growth markets such as this,” Steven King said.

Colliers National Director of Investment Services Hunter Higgins said the property drew national interest with buyers attracted by the combined appeal of the location, tenancy mix and the potential for further development.

“The purchaser has secured a prized asset in the Oasis Service Centre, with plenty of upside potential,” Hunter Higgins said.

“The essential nature of service stations, driven by consistent demand for fuel, continues to attract investors with smaller, more manageable stations becoming increasingly popular.

“Australia’s 21.5 million vehicle fleet still predominantly uses petrol and diesel, driving continued demand for fuel retailing, which has seen significant growth over the past decade.

“Location remains a critical factor in service centre transactions, with high visibility sites and development potential commanding higher interest.

“With its essential nature and potential for growth, the service station sector remains a strong investment opportunity, offering a strategic balance between consistent returns and long-term value creation,” Hunter Higgins added.

The property benefits from a development approval for an additional car wash, with the approval comprised of one automatic drive-through bay and two manual wash bays. It also has extensive parking facilities with 52 at-grade parking bays.

Boasting a significant site area of 6,004sqm, the busy service centre is strategically positioned adjacent to Exit 26, offering easy access off the M1 northbound. Vehicle traffic on the service road is further supported by its location close to the northern crossing that feeds into the Logan Hyperdome.

The Oasis Service Centre was fully refurbished in 2013 and has a projected income of $715,000 per annum when fully leased. Only four of the existing eight tenancies in the service centre are currently leased, offering potential for immediate upside for the new owner.

The $9.65 million sale price reflects a building rate of $7,995 per square metre and a land rate of $1,607 per square metre.