Nathan Mawby
11 SEP 2019
Herald Sun
One of the nation’s biggest fuel providers is selling off seven Melbourne petrol stations to developers.
The sales by Caltex will shut bowsers from Pascoe Vale to Frankston, and they have plans to dump even more sites early next year.
The Melbourne properties are among 25 the fuel giant is selling off nationwide, and expected to drive developer demand with prominent addresses and large allotments.
Sources close to the sale have tipped bowsers to stop pumping late this year, or early next.
Suburbs set to lose a petrol station are Forest Hill, Box Hill, Brunswick East, Clayton, Frankston, Carnegie and Pascoe Vale.
A Caltex spokesman said the properties were being sold as they “continue to review and evolve our network” and “they have been identified as being able to deliver a higher value through alternative use”.
Caltex Frankston is one of seven Melbourne petrol stations being sold to developers by the fuel giant
The Caltex Frankston petrol station is opposite the beach.
“As part of our ongoing network strategy we will continue to open new sites and invest in existing locations,” the spokesman said.
“In Victoria, we have opened five new sites over the last 18 months.
“While the six sites for sale will remain operational as we work through the sale process, when they close we have ensured there is a StarCard accepting site within four kilometres so we can continue to meet the needs of our customers.”
The Australian Association of Convenience Stores said the first half of 2019 had been positive thanks to ongoing efforts to provide fresh food and coffee at retail points within petrol stations.
“Though it’s low margin, petrol is important because it adds to the value proposition we provide our customers, and it makes our stores a destination for additional purchases,” said AACS chief executive Geoff Rogut.
Caltex Clayton is one of seven petrol stations being sold to developers by the fuel giant
The chain’s Clayton petrol station neighbours a significant shopping strip.
CBRE investments director Mark Wizel is handling the sales, in conjunction with Stonebridge Property Group, and said with few development sites for sale in Melbourne it was expected the sites would spark demand from across Australia and Asia.
Mr Wizel said prices for individual properties were likely to be in the millions, though it was possible one buyer would swoop on multiple sites.
“The real value is the air rights above,” he said.
“It’s most likely the sites will suit between 40 and 80 apartments.”
The petrol stations would appeal in a market where most of the sites currently for sale were being offloaded by other developers.
“To buy from Caltex as a corporate entity, we are very confident that the pricing associated with the sites will be reflective of market value,” Mr Wizel said.
The petrol distributor will remediate the sites before development starts.
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Across Australia a further 25 petrol stations are expected to be announced for sale in the first three months of next year
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