Murrumbateman service station and retail centre sold for $4.1 million

The Murrumbateman service station and retail centre has been snapped up for $4.1 million by a Sydney-based investor.

The vendor, a prominent local builder, previously operated the service station before selling the business to the current independent operator. He put the property on the market to take advantage of the strong retail climate.

The Caltex branded petrol station and Friendly Grocer are on East Street, Murrumbateman, fronting the Barton Highway.

CBRE associate director of metropolitan investments Mark Nicholls negotiated the sale and says the investor purchased the property to reap the benefits of the higher returns on offer in Canberra and the surrounding regions.

He says the site’s strategic location on a major highway linking Canberra to Yass and the Hume Highway was also a key selling factor.

“The main road positioning with exposure to approximately 12,000 cars per day appealed to a range of buyers, with the site attracting interest from both local and interstate parties,” Mr Nicholls says.

“With significant growth projected for the area over the medium term, the sale represented an ideal opportunity for investors to break into this developing market.”

The site offers ample parking, six covered pumps, as well as office and storage areas. The property benefits from a convenient location in the heart of the Murrumbateman township and it is the only significant grocer in the area.

The property was sold with leases to blue-chip tenant Friendly Grocer – a chain owned by IGA, along with local business, Murrumbateman Butcher. The tenancies offer a weighted average lease expiry of about 7.5 years and produce a net income of $324,600 per annum.