Interest in Servos Rises on Back of Record Road Budget
The Northern Territory Government’s focus on road funding has heightened investor interest in service station assets in the Top End.
LJ Hooker Commercial Darwin is currently fielding interest in a BP-tenanted service station a 10-minute drive from the Port of Darwin on the Stuart Highway at Winnellie.
The NT Budget included $4.07bn in road and transport funding, including $2.01bn for sealing to connect the state with the East Coast, making it the largest infrastructure commitment in the Territory’s history.
The transport commitments complement the Australian Government’s recent Defence Strategic Review which highlighted the importance of resilient infrastructure in the Northern Territory in shoring-up national security.
LJ Hooker Commercial Darwin Principal David Loy said the asset, situated at 386 Stuart Highway, was exposed to 14,000 vehicles a day, positioned between the Port of Darwin, the city’s International Airport and CBD. Mr Loy is managing the site’s marketing campaign alongside John Grant.
“The Stuart Highway connects the NT to the southern states so the service station’s position on the arterial has attracted interest from both local and interstate investors,” said Mr Loy.
“The service station supports a regular flow of commercial and passenger traffic, including tourists who fly into Darwin and then explore the rest of the Territory.
“The investment in road upgrades announced in the recent government budgets will underpin growth in defence in the area, housing and tourism. Well-positioned service station assets like the listing on the Stuart Highway stand to benefit.”
The Stuart Highway service station is tenanted by a BP franchisee who holds a lease until 2030 with two further five-year options. It sits on a 5,100sqm site with the tenant pays outgoings of $12,000 annually.
Mr Grant said: “There’s also potential to value-add to the site over the long-term which enjoys 100 metres of frontage to the highway”.
The property generates an annual base rent of $200,000 plus GST and is for sale at $3m through LJ Hooker Commercial Darwin.
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