This article is from the Australian Property Journal archive
APN Convenience Retail REIT has snapped up the newly built Brisbane Airport Link fuel and retail centre for $10.5 million, taking the value of its portfolio to about $455 million.
The centre is anchored by a 15 year lease to Ampol, which is operating a Caltex and Foodary operation at the site, representing 78% of the income. Remainder income is derived from Zarraffa’s Coffee and a local restaurant operator, Amhet’s.
The purchase price reflects a yield of 6.15% with the property offering a WALE of 12.6 years.
CBRE’s Michael Hedger and Darren Collins negotiated the sale on behalf of a private, Brisbane based developer.
AQR fund manager, Chris Brockett said the acquisition “represents an outstanding opportunity to own a prominent service centre where all tenancies benefit from visual exposure as well as introducing another major fuel tenant, Ampol, to the fund’s tenancy mix.”
Caltex is rebranding itself back to Ampol after US based Chevron ended the licensing agreement with for the Caltex brand in Australia.
Brisbane Airport Link is strategically located in a precinct that will service high volumes of diesel sales given the density of industrial holdings within the immediate area, and its proximity to courier, taxi, and car rental services stemming from Brisbane Airport, Brockett said.
The centre is situated on the East West Arterial Rd, providing exposure to over 100,000 cars each day, and is the last eastbound travel centre heading to the Gateway Mwy.
“Retail investments such as Brisbane Airport Link, which offer a long WALE, provide certain income growth and are underpinned by strong tenancy covenants, are highly sought after,” Hedger said.
“We are seeing strong demand in the service centre and neighbourhood retail sectors, with investors becoming more focussed on the properties with resilient income profiles that have performed strongly in the current COVID climate.”
Multiple fuel stations across the eastern seaboard sold at the most recent Burgess Rawson portfolio auctions in Sydney and Melbourne, including a 7-Eleven in Redbank Plains for $5.55 million with a $330,000 annual net return and 12 year lease.
