INVESTORS’ thirst for quality service stations continues to ramp up with an asset in the heart of a major regional Queensland city snapped up by a local buyer.

They paid $4.8m for the Caltex Service Station at 282 Ruthven St, Toowoomba, after an expressions of interest campaign run by RE/MAX Commercial Deepen Khagram.

Mr Khagram said the high exposure site attracted more than 50 inquires and eight offers.

“It has a top tier covenant in the heart of Toowoomba with high exposure on the New England Highway,” he said.

“We had inquiries from all over the place but the strongest candidates who were looking to buy were local investors.”

The asset is on a strategic 1976sq m site with two street frontages and 455sq m of building area.

Caltex Australia Petroleum has a 10-year lease with two five-year options.

The company pays a net rent of $262,086 a year plus GST.

Caltex has environmental/ remediation responsibilities.

The sale realised a 5.4 per cent yield.

According to CoreLogic the property last changed hands in 2008 for $3.5m.

Mr Khagram said quality regional assets were on investor’s radars.

“The sale shows that there’s a lot of money out there chasing yields and this result was a very tight yield for the Toowoomba market,” he said.