Charter Hall has snapped up a 49 per cent stake in another portfolio of Ampol service stations.
The 20 assets – 15 of which are in metropolitan areas – is setting the manager back $50.5 million.
The price reflects a five pc capitalisation rate.
Ampol will own the balance.
The deal comes 14 months since Charter Hall with GIC paid the petrol giant $682m for a 49pc interest in 203 Caltex-branded outlets.
That leaseback agreement was struck at a blended 5.5pc yield.
It was also not evenly funded, with Charter Hall tipping in $34m for five pc of the portfolio value – leaving GIC with the balance (44pc).
Servos earmarked for retail fund
As part of the latest leaseback deal, Ampol will pay annual CPI-linked rent rises – between two and five pc.
Charter Hall will hold the 20 investments in its Retail REIT (CQR).
The blended Weighted Average Lease Expiry is 15.6 years.
Ampol will become CQR’s eighth biggest tenant, contributing to one pc of trust revenue.
“We are delighted to…introduce another major convenience retailer to the CQR portfolio,” Charter Hall Retail chief executive officer Greg Chubb said.
“Today’s acquisition is consistent with our strategy of growing our exposure to market leading convenience retail and further enhancing the resilience, growth and stability of CQR’s income,” he added.
“The [triple net] leased nature of these assets and Ampol’s ongoing co-ownership of this portfolio provides CQR investors with an attractive and capital efficient lease structure, while introducing a new partnership with a leading operator in the fuel and convenience sector,” according to the executive.
All properties are located on main roads (story continues below).
“The high underlying land value and predominantly metropolitan location of the portfolio also provides significant long-term capital value upside,” Mr Chubb said.
In October, Ampol listed a full interest in another portfolio of service stations – the 18 assets, mostly in regional locations, are being marketed by Stonebridge’s Lincoln Blackledge and Julian White.
Edmondson Park Ampol fetches $23m
In a separate deal, an Ampol-backed convenience retail investment at Edmondson Park (pictured, top), south west of Sydney, is trading for $23m on a 4.93pc yield.
The two year old asset at contains five buildings; other tenants include a Plus Fitness gym, Indian grocer, SANGAM, and two fast food brands, Frangos Charcoal Chicken and Philliez American.
Part of the 7731 square metre property, 2072-2074 Camden Valley Way, has development upside.
It could also be strata titled and sold down.
The WALE is eight years.
Cushman & Wakefield’s Yosh Mendis, Geoff Sinclair and Michael Collins marketed the investment with JLL’s Dylan McEvoy and Gordon McFadyen.
In the immediate area, Frasers Property is replacing a 24 hectare block with a town centre and affordable housing project.
Star Super is in the pocket too, the agents added, with plans for eight residential buildings.
The state government’s Landcom is also in partnership with developers on a range of other Edmondson Park blocks.
“Roadside retail assets with their national tenants who have proved their sustainable business models during the pandemic, landlord friendly lease structures, secure guarantees and typically fixed income growth provide investors with significant comfort and confidence,” Mr McEvoy said.
“These assets are often located in high profile/exposure positions which lend the assets to long term redevelopment potential,” he added.
Extracted from Real Estate Source