Convenience store chain EG Group has sold the second of three service stations listed last month with leasebacks running until 2038, or 30 years after that with options.

The brand new Epping facility on 3483 square metres at 35C Cotters Road, on the north west corner of O’Herns, fetched $7.4 million, reflecting a six per cent net passing yield.

The lease agreement lines up rent rises to CPI.

The incoming owner will be able to claim depreciation benefits for tax too

Burgess Rawson sold the property on the second day of a three day bulk auction event – one day each from a base in Sydney, Melbourne, where it was held this morning, and Brisbane – where one runs tomorrow.

At yesterday’s event, EG sold a service station with a leaseback at Cameron Park, 16 kilometres west of Newscastle, for $7.67m, reflecting a 5.87pc return.

Tomorrow the retail group will offer an investment at Brendale, about 22kms north of Brisbane.

Pace sells Blackburn retail investment

The Epping property was one of 11 which traded at Melbourne event – all up, sales tallied $37.272m on a blended 5.9pc yield. The clearance rate was 74pc.

Pace was another vendor – banking $2.35m for a retail investment, spreading 358 sqm on a ground floor corner tenancy, part of its Pace of Blackburn project, east of Melbourne.

Leased for 10 years to Indian restaurant Daiku, that result reflected a 5.45pc return.

Two childcare centres also traded, at Melton in the west, and St James, south east of Perth, at yields of 5.3pc and 4.66pc respectively.

A Goodyear Autocare backed retail investment at Leongatha, in Victoria’s South Gippsland region meanwhile, collected $1.035m – a 3.75pc return, the lowest for the day.

“The conservative budget announced last night has underpinned confidence in the commercial property market,’ Burgess Rawson chief executive officer, Ingrid Filmer, said.

“We had strong bidding at our auctions cementing the investor confidence with interest rate rises,’ she added.

“Investors were lured to regional and metropolitan assets with the secure leases and quality tenants key attributes buyers seek,’ according to the executives.

Fourteen properties traded at in Sydney yesterday – again reflecting a 74pc clearance rate – for a total of $37.272m on a blended 5.12pc yield.

One of the investments, leased to Goodstart Early Learning, at 93 Cabramatta Rd in Mosman, sold for $4.41m setting a 2.75pc yield which the agent, Yosh Mendis, said is a record low for an Australian asset of this type. Natalie Couper and Michael Vanstone were co-agents.

Jamie Perlinger, Zomart He, and Rick Jacobson marketed 33C Cotters Rd.

Mr Perlinger, Mr He and Mr Mendis with Campbell Bowers brokered the Newcastle deal.

These four agents are also taking the Brendale property to auction tomorrow.

Shaun Venables, Matthew Wright and Romanor Falconer sold the Blackburn property, at 168 Whitehorse Rd.

Marc Pallisco, RealestateSource