The APN Convenience Retail REIT on Friday unveiled a deal that will see it snap up 13 service stations and convenience retail properties across four states for $74.6m reflecting an initial yield of 6.2%.
Three of the fuel stations are complete with 3 under construction and 7 on fund through arrangements with third parties. Eight of the assets are in South Australia, 2 in Queensland, 2 in WA and 1 in NT.
The deal takes the total number of fuel stations in the portfolio to 81, valued at $428m. The fund raised $38m to fund the acquisition and could raise a further $5m under a security purchase plan.
The portfolio introduces new high quality tenants to the Fund’s portfolio including BP Australia, Liberty Oil (50% owned by Viva Energy Australia) and a major independent operator trading as ‘Mobil X Convenience’ and Mobil’s preferred operator throughout South Australia and Western Australia.
Chris Brockett, APN Convenience REIT Fund Manager, said: “The Acquisitions provide AQR an outstanding opportunity to acquire a portfolio of newly built and well-located assets, enhancing AQR’s overall tenant and geographic diversification.”
“Importantly, the Acquisition Portfolio is underpinned by long-term leases with contracted annual rental increases of 3%, providing investors with secure and sustainable income growth.” #APN
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