Convenience retailing hits the mark – Burgess Rawson’s, Jamie Perlinger
“The result of their success is evidenced by our sales tally. Last year, Burgess Rawson sold almost $220 million in fuel and convenience assets with yields stabilising at circa 5.8%. Five years ago, we brokered $166 million of these assets with the blended yield averaging 6.05% further demonstrating how confidence in this sector has remained,” he said.
Recent deals across the eastern seaboard are showing firm yields with a 7-Eleven store in East Brisbane, Queensland selling for $7.12 million reflecting a yield of 4.91% while a United Petroleum fuel outlet in Altona North, Victoria sold for $8.62 million, showing a yield of 5.04%. An EG site in Lisarow, New South Wales sold on a return of 3.95%.
Perlinger said that the trend has been showcased by companies such as fuel heavy weight, Viva Energy, owner of the Shell service stations in Australia, which recently announced their plan to buy the Coles’ network of convenience stores on their sites, giving them a bigger retail footprint and ramping up customer engagement.
“This strategy gives Viva Energy exposure to the fast-growing convenience segment through full ownership.
“Combining essential services such as fuel and convenience can secure an exceptional investment opportunity that offers secure long leases and top-tier tenants. This represents a set-and-forget freehold investment with guaranteed rental growth,” he said.
Perlinger said that despite perceived challenges, fuel and convenience retailing assets have remained resilient and in fact, top global companies such as Ampol are also partnering with leading EV businesses and adopting a progressive approach to future outcomes.
“These properties are malleable and value-adding due to their locations, so have been highly contested at our auctions.
“With such solid indicators, fuel and convenience is a wise investment choice for those looking to secure their financial future,” he said.
Burgess Rawson has several fuel station assets available for purchase at Portfolio Auction 158 to be held in Sydney, Melbourne and Brisbane over February 21 and 23, 2023. Portfolio Auction 158 | Burgess Rawson
The upcoming Burgess Rawson report, Industry Insights on Fuel and Convenience will be released in March. To receive a copy of this eight-page analysis please click here.
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