Dexus Convenience Retail pumps it up sale of 10 Takalvan Street, Bundaberg

Dexus Convenience Retail REIT (ASX: DXC) recently announced the settlement of 10 Takalvan Street in Bundaberg West, Queensland.

The $2.57 million sale represented a 6.2% premium to book value at 31 December 2021 with settlement occurring on 6 May 2022.

The petrol station is located some 2 kilometres from another Bundaberg property recently that recently sold: The Grand Hotel Bundaberg, in the heart of the town, was sold at the end of April for circa $4 million.

The asset is listed on realcommercial.com.au as sold by Burgess Rawson on 4 April 2022, with a land area of 898 square metres. The listing also noted the property has an 18 year net lease to 2034, with options to 2074, an estimated net rent of $139,113 per annum, and fixed compounding 3% rent increases.

DXC also announced the exchange of contracts to sell 273-279 Gympie Road in Kedron Queensland, with the asset to leave DXC’s hands at a 3.9% premium to book value at $4.32 million.

The property was also listed on realcommercial.com.au as sold by Burgess Rawson on 4 April 2022, the petrol station sits on 1,604 square metres of land, and likewise includes 3% rent increases. The tenant has an 18 year net lease to 2035 plus options to 2075.

Settlement is expected in early June this year.

Both properties were leased to Chevron and branded Puma Energy.

“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,” said Chris Brockett, DXC Fund Manager.

DXC noted that it “… is also in advanced negotiations regarding the potential sale of a third property.”