Caltex has announced which Illawarra service stations will be sold as the company hopes to cash in on the booming development market.
Caltex intends to sell two Illawarra service stations as part of a plan to offload 50 properties across Australia.
The sites that have come up for sale are in Albion Park and Warrawong, and are expected to appeal to mixed-use developers.
While price guides are yet to be finalised, experts believe that sites will sell for above value because of the opportunity.
The decision to sell the properties follows the company telling investors last month that it would sell 50 fuel outlets across Australia it had identified as having “higher value through alternative use”.
A Caltex spokesman said the sites at 75-77 King St, Warrawong and 222 Tongarra Rd, Albion Park, are worth more as developments than as service stations.
“They have been identified as being able to deliver a higher value through alternative use — they are ideal for low to medium rise apartment development, located in attractive, high demand areas with strong growth opportunities,” the spokesman said.
All service stations will be remediated by Caltex as part of the sale in a bid to reduce environmental concerns.
Stonebridge Property Group director Lincoln Blackledge, who is selling the two sites with CBRE’s Mark Wizel and Julian White, said developers who buy the properties will be able to earn income from day one as Caltex plans to lease the sites for an extended period.
“Caltex intends to occupy the properties through a licence agreement while they demolish and clean up the blocks,” he said.
“This will allow developers to earn an income while they get their plans approved by council.”
The 2950sqm King St site is close to Port Kembla and is described as a good development opportunity for buyers looking to get a slice of land close to the centre of Warrawong.
Located on the main road through Albion Park, 222 Tongarra Rd is a 1903sqm block with dual street frontage and has mixed-use zoning. It is described as the perfect spot for developers looking to leverage the proximity to the established town centre location.
Meanwhile, a property at 40 Princes Hwy in Unanderra that is leased to Westside Petroleum is being sold by the owners of the site.
Due to go to auction on October 15 with JLL agents Gordon Mcfadyen and Dylan McEvoy, the 1295sqm landholding is being targeted towards investors after a high yielding site with a long-term tenant.
Westside Petroleum commenced a 10-year lease of the site in 2016, and has the option of four further 10 year leases. According to the listing ad, It currently has a net passing income of $324,350 per annum.
Extracted from News.com.au