Stonebridge Property Group has successfully transacted the BP Mitcham Service Station in an off-market deal for $3.5 million.
Located at 240-244 Mitcham Road, the property was sold to an Asian-based fuel operator via the Stonebridge Asia Practice. The sale achieved a sharp 4.08% yield, highlighting the strong current demand for metropolitan Melbourne fuel investments given the tightly held nature of this asset profile over the previous two years.
With a four-year lease term remaining to a BP franchisee (expiring August 2029) and no further options, the purchaser identified significant value in the existing goodwill and improvements, alongside the opportunity to reposition and operate the site in the near term.
Stonebridge Asia Practice Partner Kevin Tong commented: “Fuel operators remain one of the most aggressive buyer profiles for fuel and convenience retail opportunities, particularly short WALE sites where they can unlock future operational upside. This is being driven by their highly selective approach to sites and intense competition among operators to secure proven trading locations.”
This result follows the recent EG Keysborough service station sale, which achieved $11.07 million on a 4.61% yield – more than $2.5 million above reserve at a competitive boardroom auction. Once again, fuel operators were at the forefront, competing aggressively to secure a site with established goodwill and a strong trading location.
Stonebridge has seen a significant spike in appetite for short WALE service stations, fuelled by rising competition among operators and the scarcity of high-quality metropolitan opportunities in recent years. These dynamics are driving benchmark results across the fuel and convenience sector, highlighted through sales such as BP Mitcham and EG Keysborough.
Stonebridge Partner Rorey James commented; “Generally speaking, buyer sentiment across Australia continues to trend in a positive direction. Enquiry levels and activity from all buyer types have increased in the first few months of the new financial year, buoyed by recent and further forecasted interest rate cuts.”
For further information, please contact:
Rorey James | +61 439 400 081 | RJames@stonebridge.com.au
Kevin Tong 汤聪瑜 | +61 422 848 818 | KTong@stonebridge.com.au
ABOUT STONEBRIDGE
The Stonebridge National Portfolio Team is the leading freestanding investments sales team with over 30 years of combined experienced dedicated to blue chip retail, fast food, childcare, medical, and fuel and convenience investments. With offices in Melbourne, Sydney, and Brisbane, the team has access to premium assets and a deep network of investors across Australia, having transacted 96 properties for a combined value of ~$650 million in FY2025 alone.
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