New year, new servos offering

JUST a few months after reaping $78 million from the sale of 15 service stations, Bill Withers has listed a final tranche of 7-Eleven sites along the east coast for another portfolio auction event.

The latter part of 2019 saw activity in the fuel and convenience asset class go up a gear. As well as the initial 7-Eleven portfolio sales, Caltex sold off a first lot of 25 service stations for about $136 million, before announcing intentions to float of a new trust with 250 stations during this year. Charter Hall then agreed to take on a 49% interest in a $1.7 billion portfolio of 225 BP-branded petrol stations.

Eighteen 7-Eleven properties are now set to go under the hammer at a Burgess Rawson auction event in Sydney and Melbourne on 25th February, each with brand new 12 year net leases plus options to 2052 to Convenience Properties, which owns and operates some of Australia’s 7-Eleven stores.

Victorian properties include Corio, Pascoe Vale South, Pascoe Vale, Upwey and Wantirna; in New South Wales, stores in Minchinbury, Maryville, Mayfield West, Penrith South, Plumpton and Wahroonga will be auctioned.

ACT assets are located in Mawson, Melba, Spence and Wanniassa, and in Queensland a property neighbouring the Dreamworld theme park at Coomera, along with one in Nambour.

Each lease has fixed, compounding 3% increases and generate annual rents of between $116,904 (Wahroonga) and $327,083 (Wantirna).

Burgess Rawson director Billy Holderhead said this is “definitely the last time a tranche of 7-Eleven stores will be offered in a portfolio scenario”.

“The quality of the leases to Australia’s number one convenience retailer, along with conservative rents and overwhelming potential for growth, make these assets one of the best opportunities likely to be brought to market in 2020.”

Australia’s largest convenience and independent fuel retailer, 7-Eleven currently operates around 685 outlets across its franchise and corporate network, and accounts for 39% of Australia’s total convenience market. Convenience Properties was established in 1977 by Bill Withers and his late sister Beverley Barlow.

The 7-Eleven portfolio auction will begin at 55 Margaret Street in Sydney, and continue in the afternoon in the River Room at Melbourne’s Crown Casino.

Published by Australian Property Journal