Anyone going for this ?

wondering if anyone going for this one ? they have 4 sale at once.

http://www.realcommercial.com.au/cg...=&fmt=&header=&cc=AU&c=98680718&tm=1285994507

I think they're being creative when they say 'Nepean Hwy exposure' - its on Station Street, not the highway. There is a crossing (over the railway) from Nepean Hwy, but if you miss that one there's ones at Edithvale Rd or Aspendale.

Shopping in the area is dominated by Woolworths at Mordialloc and Chelsea - there's no Coles between Frankston and Mentone. The Woolworths competition servo is at Chelsea - about 2km away.

This strip has a fair number of former servos (mostly on the highway rather than Station St). Some are eyesores but have alternative uses (some quite low-value) or have been developed for housing. This could strengthen those that remain - I don't know.

Station St isn't a highway but obviously has enough passing traffic for a servo. There are not a lot of largish commercial sites along Station St, as the street is largely residential (much more commercial along Nepean Hwy). Those non-residential uses along Station St are things like fire stations, churches and child care centres which don't have customers as coming and going as much as retail. The retail vacancy rate in the area is very high, with small shops most affected.

The asking price could possibly be justified by the yield.

However $3m+ for the same land area as two house blocks on a busy road on the wrong side of the tracks (for the beach) does not look great value, given that a house on the 'wrong side' will leave much change out of $1m.

Townhouse buyers in this area pay stupid prices for the tiny land area of their purchase, and for such development this land could work. There's likely be bay glimpses from a second storey.

But to make a big profit out of a townhouse sale price of (say) $500k, one might want to cram nearer 20 on this block than 10 (ie $150k land per unit rather than $300k). There is a large townhouse type development nearby on Edithvale Rd so there's a precedent that could be pointed to.
 
Looks like a portfolio of petrol stations has been put up for sale. If i was in that league, i'd be having a chat to some people that own that type of property and get the 411
 
spiderman,

there is another commercial on nepean highway, 110 railway parade seaford, going for 550k ex, with net return only about 5% , i wonder what are your thoughts on this one (seeing you are local there).



I think they're being creative when they say 'Nepean Hwy exposure' - its on Station Street, not the highway. There is a crossing (over the railway) from Nepean Hwy, but if you miss that one there's ones at Edithvale Rd or Aspendale.

Shopping in the area is dominated by Woolworths at Mordialloc and Chelsea - there's no Coles between Frankston and Mentone. The Woolworths competition servo is at Chelsea - about 2km away.

This strip has a fair number of former servos (mostly on the highway rather than Station St). Some are eyesores but have alternative uses (some quite low-value) or have been developed for housing. This could strengthen those that remain - I don't know.

Station St isn't a highway but obviously has enough passing traffic for a servo. There are not a lot of largish commercial sites along Station St, as the street is largely residential (much more commercial along Nepean Hwy). Those non-residential uses along Station St are things like fire stations, churches and child care centres which don't have customers as coming and going as much as retail. The retail vacancy rate in the area is very high, with small shops most affected.

The asking price could possibly be justified by the yield.

However $3m+ for the same land area as two house blocks on a busy road on the wrong side of the tracks (for the beach) does not look great value, given that a house on the 'wrong side' will leave much change out of $1m.

Townhouse buyers in this area pay stupid prices for the tiny land area of their purchase, and for such development this land could work. There's likely be bay glimpses from a second storey.

But to make a big profit out of a townhouse sale price of (say) $500k, one might want to cram nearer 20 on this block than 10 (ie $150k land per unit rather than $300k). There is a large townhouse type development nearby on Edithvale Rd so there's a precedent that could be pointed to.
 
But to make a big profit out of a townhouse sale price of (say) $500k, one might want to cram nearer 20 on this block than 10 (ie $150k land per unit rather than $300k). There is a large townhouse type development nearby on Edithvale Rd so there's a precedent that could be pointed to.

Not to mention the clean-up bill for the site after the servo and in-ground fuel tanks are removed.

I'm tipping the soil tests could be scary.

If it is the freehold and business (the ad doesn't specifically state freehold and business unless I'm reading it wrong), then I'd be thinking you would simply keep the lot as is and live of the income.
 
agreed Marc,
the buyer needs to check the Lease and ascertain who exactly is responsible for the clean up costs when the Lease expires. BP have a knack of removing all clean up provisions from out of their Leases. My old employer bought an old BP site and have had dramas from day dot trying to get it passed by the DEC. Nice little plume has made its way from the old tanks, down 30 meters, and into surrounding property owner's land...nightmare!
No good for resi development now

Boods
 
time for a really stupid (amaturist, showing lack of experience:confused:) question.
It says GST exclusive.
Does that mean that one pays GST on existing commerical property (ie not a new build) when the sale occurs?
 
It says GST exclusive because the sale is "a going concern"....

....meaning, that one entity owns the freehold title - the Landlord, and one entity has the Leasehold over the property....BP.


Once the sale concludes, all that is going to happen is the Landlord's are switching places. BP as the Tenant is going to continue to be there and keep trading as a going concern....hence no GST is payable upon the sale.


If BP were the Landlord and they were selling the land and going to become the Tenant, and a Lease would be created with the new Landlord coming in, then it wouldn't be a "going concern" and the new Landlord would have to pay 10% on top of the sale price. They would then claim it back via their BAS statements in the next quarter or two.



Similarly, if the building was empty and had no Tenant, the incoming Landlord would have to pay 10% as there is no "going concern" associated with the sale of the box.


It's a mere cashflow bump or hiccup you need to get over.


Clear as mud ??
 
An opportunity here for a syndicate? to make a lowball offer (15-25% discount for 10.5-12% yield) for multiple sites (make that two). Don't know what the portfolio refers to, whether the portfolio of Ray White Brisbane's listings, or 4 sites put up by one vendor.

Edithvale : BP 3.2 8.85%
Cranbourne West : BP 4.35 9.2%

Under Contract
Ferntree Gully : Mobil Fuel Zone 3.35M 14.37%
Oakleigh : Mobil Free Zone, MacDonald's, Carlovers Car Wash 6.8m 8.73%
 
WW,


That Ferntree Gully property would be extremely hard to finance. If it under contract, I'd suspect it would have to be a cash contract, cos no Bank is going to support a Landlord hoping to finance a 1 acre block out in the middle of nowhere with a Tenancy starting in January 1996 for 16 years. In Dec 2011, only 14 months away, they can say bye-bye and suddenly you are left with nothing.


If they execrise their 8 year option - no problemo - but she's a big gamble. Huge win if they say yes, huge loss if they say no.


Like most Leases, the Tenant wouldn't be obligated to officially inform the Landlord until 3 months out....so in Sept 2011 you'd be sweating bullets on their decision to stay or go. Perhaps the current Landlord already knows what the answer is going to be, and is bailing out at any price, hence the 14.37% low low low price tag ??
 
It says GST exclusive because the sale is "a going concern"....

....meaning, that one entity owns the freehold title - the Landlord, and one ................................................


Clear as mud ??

thanks, haha but of course it has to be clear as mud, otherwise the accounting profession would incur a severe and permanent errosion of income.
 
Dazz, I didn't check locations or lease details. Presumed the 14.37% was sweat money.

Just googled Napoleon Rd and it isn't an arterial, so the 3 bay garage would want to have a good mechanic...franchise sites usually don't. The latest tech car washes (ones that don't screw the duco) can have good returns in inner mid ring burbs, especially during water restrictions and I'd bet on Melbourne having heaps more of those in the next 15 years.

When I had a stint with Mobil in the 80s, there was always cashed up Middle Eastern migrants interested in independent sites sourcing fuel from whichever refinery produced the greatest surplus from month to month.

Nevertheless, when I was with Mobil, they only dumped low volume dogs, but only if it didn't provide an opportunity for an independent to flog volume from nearby Mobil sites.

Part of my DD for petrol retailers would be to get up to speed on Melbourne refinery capacities. Excess capacity is what drives price wars. In the 80s, it was cheaper for the refineries to run at full production then to scale back to match consumer demand. And the price wars favor the independents cos franchisors won't subsidize franchisees sufficiently to match them.
 
hi all,

i am just wondering that if we need to order in those professional services for building and pest inspection ? or there is no such service needed ?

this is the beginner question.. and hope someone can answer it for me.

thx
 
I'd concentrate on the Lease, the location and the financing....in that order.

Get those 3 right, and you're laughing.

P&B are very minor and will be dealt with as issues in the Lease.
 
Top