40-44 Montgomery Street

Skipton VIC 3361

The site
* Strategically positioned on Glenelg Highway, an important main arterial road connecting Ballarat to Mt Gambier.
* Traffic flow data reveals an average (AADT) of 1400 vehicles per day with a high proportion of heavy vehicles. (Source: Vic Dept of Transport Open Data Hub)
* High profile 3,037 sqm corner site with 184m combined street frontage – Glenelg Highway/Bridge St./Windham St.
* It comprises four lots (960m2, 385m2, 958m2 and 733m2)

The property
* This is the only service station near Skipton, others located at Smythesdale, Ballarat, Beaufort & Lake Bolac.
* In a Commercial 1 zone it is classified as: AVPCC 215 - Fuel Outlet/Garage/Service Station
* The property boasts six bowsers under a new protective canopy offering all types of fuel supplied from new underground lines and refurbished pumps.
* The brick building houses a convenience store, cafeteria, newsagency, toilets, kitchen, AusPost outlet (inc. mail delivery), manager's house and three accommodation units.
* Recent renovations include:
* Total removal of asbestos from the building followed by new shop flooring and upgrades to toilets and kitchen equipment.
* Refurbishment of the manager's house plus removal of the adjacent garden to create eight car parking spaces.
* Upgrades to the three accommodation units

The lease
* The current lease runs from 1st July 2018 to 30th June 2031. A renewal option is available until 2046 with the earliest exercising option 1st Jan 2031.
* Rental: Currently $203,247 plus GST. This represents an estimated yield on investment of around 9% return.
* Strong and certain rental growth with annual, fixed, compounding increases of 3%.
* Tenant to pay 100% of outgoings, including rates and taxes (not Land Tax in accordance with Retail Leases Act 2003), utilities, insurance (buildings, $20m public risk), etc.

The area
Skipton is located on the Glenelg Highway, 166 km to the west of Melbourne in the Shire of Corangamite (LGA). The regional centre, Ballarat, lies 52 km to the north-east while the local area offers all basic amenities including a primary school and golf club as well as the Skipton Historical Precinct directly opposite. Further east is an IGA supermarket, pharmacy, café and bakery. The surrounding locality is of a mixed-use nature including residential homes, rural/residential lifestyle property, farming land, agricultural supplies and several light industrial-use premises.