Dexus Convenience Retail REIT Sells two Fuel sites

9 May 2022

Dexus Convenience Retail REIT has sold two convenience fuel stations in QLD at prices above book value.

The assets were located at 10 Takalvan Street, Bundaberg West QLD (Bundaberg), and 273-279 Gympie Road, Kedron QLD (Kedron). Both sites were branded Puma Energy and leased to Chevron.

Bundaberg was sold for $2.57 million, representing a 6.2% premium to book value at 31 December 2021. Settlement occurred on 6 May 2022.

Kedron was sold for $4.31 million, representing a 3.9% premium to book value at 31 December 2021. Settlement is expected by early June 2022.

Chris Brockett, DXC Fund Manager, said: “The sale of these older sites has crystallised strong returns for Security holders while also reflecting our disciplined approach to capital allocation. The strong pricing achieved reinforces the high-quality nature of the underlying portfolio and demonstrates that service station and convenience retail properties remain highly sought after as a stable and defensive asset class due to their long leases and strong lease covenants with exposure to non-discretionary spending.

“We remain focused on recycling capital into acquisition opportunities that will continue to enhance the overall quality of the portfolio, as well as continuing to actively buy back securities to capitalise on market volatility.”

In addition to the Bundaberg and Kedron sales, DXC is also in advanced negotiations regarding the potential sale of a third property.