Industrial portfolio of seven heavy vehicle refuelling facilities up for sale

A portfolio of heavy vehicle refuelling facilities across three Australian states and valued at more than $26 million is being taken to the market.

The eight properties in the portfolio, six of which are in Queensland, with one each in New South Wales and Western Australia, are being sold by Australian-owned IOR.

IOR operates a network of nearly 100 unmanned diesel stops designed for heavy vehicles operating 24/7 across Australia and delivers bulk fuel, storage and monitoring solutions throughout Australia.

The assets, which include seven heavy vehicle refuelling facilities, along with one adjoining vacant parcel, will be taken to the market via an Expressions of Interest campaign run by Knight Frank agents Mark Clifford and Elliot Ryan.

The properties will be offered for sale in one line or individually

The portfolio totals 84,000sq m of land and consists of the following:

Queensland

• 16 Ashburn Road, Bundamba (4,238sq m site)
• Lot 1, 10797 Warrego Highway, Charlton (19,910sq m site)
• Lot 2, 10797 Warrego Highway, Charlton (19,780sq m site) (vacant site)
• 5 Palmetta Street, Chevallum (3,000sq m site)
• 31 Notar Drive, Ormeau (4,000sq m site)
• Cnr Hungerford and Glasser St, Goondiwindi (20,242sq m site)

Western Australia

• 27 Mercury Rise, Muchea (10,000sq m site)

New South Wales

• 15 Zlypha Dr, South Kempsey (2,935sq m site)

Mr Clifford said the portfolio offered investors instant scale and diversified exposure across three states with a focus within South-East Queensland, Australia’s fastest growing economy.

“These properties are in strategic industrial locations offering exceptional land holdings,” he said.

“Each site provides value-add potential for investors, subject to council approval and the lessee’s consent, but they currently offer strong income with a total passing net income of $1.6 million and a 10-year WALE.

“The portfolio has a strong tenant covenant with a 100 per cent occupancy rate.

These factors together – strong WALE, prominent locations, all along major highways within high- profile states and value-add potential – represent one of the most unique opportunities presently within the industrial investment market.”

Mr Clifford said industrial land values continued to escalate in Australia, and an incoming purchaser would benefit from ongoing growth.

“Desirable locations with good access to transport infrastructure are increasingly scarce and the large scale of tenant requirements is another driver of growth, with markets seeing a narrowing of the spread between the values of smaller and larger lots,” he said.

IOR Managing Director Stewart Morland said the sale of the assets would enable the company to focus on fuelling the needs of its customers in the essential transport industry.

“Our network of diesel stops serves the needs of Australia’s transport industry which is a critical component for most Australian supply chains,” he said.

“Increased demand for transport driven by growth in agriculture, manufacturing, and merchandise imports and exports has in turn been a catalyst for our business’ success.

“We see the sale of these assets as an opportunity to fuel future growth in our business.”

The Expressions of Interest campaign for the property at 4pm on November 16.