APN Property fund pumps up petrol station portfolio

The APN Convenience REIT has snapped up a portfolio of six service stations, anchored by 7-Eleven outlets, across south-east Queensland, in a $59 million deal.

The petrol stations were acquired from Bluepoint Property, which developed the outlets between 2014 and 2017. The deal was struck on an average yield of 5.5 per cent.

“This is another exciting portfolio acquisition which reflects our ongoing active approach to growing the portfolio in a prudent and disciplined way,” fund manager Chris Brockett said.

“These properties are outstanding examples of well located, designed and built service station and convenience retail centres, with a great mix of national and local retailers. All sites are strategically located on main arterial roads and are exposed to high traffic flows.”

The portfolio – petrol stations at Griffin, Holmview, North Lakes, Upper Coomera, Greenbank and Highfield – derives 68 per cent of its rent from the 7-Eleven outlets. It was brokered by JLL’s Jacob Swan and Sam Hatcher.

“This portfolio acquisition highlights the strong market appetite for quality, convenience focused retail,” Mr Swan said.

More such portfolio transactions could be expected in coming months, according to Mr Swan, as investors seek out the return premium provided by convenience retail in comparison with other commercial property assets.

The deal takes APN Convenience Retail REIT’s portfolio to 97 properties valued at $619 million. It is one of two listed trusts within the stable of funds run by APN Property, a Melbourne-based fund manager which is the subject of a takeover offer from Dexus.

Extracted from AFR

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