A Sydney investor has swooped on a southside 7-Eleven service station as demand for defensive investments continues to be strong. They paid $7.8m for the property 642 Toohey Rd, Salisbury, after a deal struck by Burgess Rawson’s Campbell Bowers and Andrew Havig on behalf of a private developer who built it in 2017.

“It was a Sydney buyer who we have dealt with before and they really liked the location and above all else having 7-Eleven as an anchor tenant,’ Mr Bowers said.

“It’s a great site in a prominent industrial area and is super busy.’ On a high profile 2074 sqm corner site fronting Toohey Rd, the asset is anchored by a 15-year lease to 7-Eleven Limited with options through to 2057.

The property also has a new 10-year lease to Kebabland Express plus options through to 2040 and 3 per cent annual rent increases for both tenants. The sale realised a yield of 5.2 per cent. Mr Bowers said convenience backed retail assets, underpinned by strong land values, continued to be an investment favourite.

“Things are going strong. There’s demand for the premium stuff and it’s the sort of stuff that is quite defensive,’ Mr Bowers said.

“No matter what happens in the economy these things continue trading and turnover and rental will keep increasing.’

Chris Herde, Brisbane Courier Mail