This article is from the Australian Property Journal archive
BRISBANE-based fund manager Amplify Funds Management has made its first venture into the fuel and convenience asset sector in Queensland, acquiring a portfolio of six regional assets for $25.74 million, while the evolution of the assets themselves is also attracting investors in Western Australia.
Acquired via its Fuel and Convenience Trust, the properties are leased with a 9.6 year weighted average lease expiry to Chevron.
“They are all high volume sites in either strong highway locations, industrial re-fuelling sites or in strong rural economies,” Amplify said.
The portfolio includes Caltex sites in Atherton, Banana, Bohle, Nambour, and Portsmith, and a Puma-branded site in Gin Gin which Chevron proposes to be rebadged to Caltex in 2025.
Peter Rossi, chief investment officer of Amplify said, “these assets satisfy our philosophy of aiming to provide our investors with the best opportunity of capital preservation, secure and predictable incomes from world-class tenants and capital growth.
“We have been well-supported by investors from regional Queensland who understand the inelasticity of fuel demands in country areas, far from urban EV influenced fuel economies.”
The deal was brokered by Cushman & Wakefield’s Daniel Cullinane and Daniel Wolman.
Wolman said the acquisition reflects the continued strength and resilience of the portfolio style fuel and convenience sector.
“We are seeing this trend occur towards the back end of the year as the market anticipates favourable economic conditions with potential interest rate cuts on the horizon.”
Cullinane said demand for convenience retail assets remains robust due to their classification as essential services, which ensures stable, secure income streams for investors.
“Queensland’s investment landscape is particularly appealing, bolstered by recent government initiatives and global attention as we look ahead to the 2032 Olympics.”
Pull out west
Meanwhile, the service station industry is expected to experience an evolution by broadening its retail services and transforming current locations into convenience-focused retail hubs to meet consumer needs in Western Australia, according to another major agency.
A newly constructed service station and convenience store in the state’s south-west has been sold for $5.1 million. Located at 8D Picton Road, East Bunbury, the property is leased to the global tenant 7-Eleven under a long-term lease, offering annual rental growth and substantial tax depreciation benefits.
The campaign by Colliers agents Richard Cash and Aidan Austenwere attracted more than 80 enquiries from both local and eastern states buyers, with an eastern states-based funds management group securing the purchase.
The agents have active service station listings available at 7-11 Hutton Street in Osborne Park and Burk Fuel, Broadwater.
The sale of 7-Eleven East Bunbury marks the first non-metropolitan service station transaction since March 2023, and reflects a result over 50 basis points stronger than the March 2023 sale.
So far this year, Western Australia has seen over $41 million in service station transactions, with an average yield of 7.18%. The 7-Eleven East Bunbury deal came in at 6.92%.
Service stations increasingly include a variety of offerings, such as convenience stores with fresh food, car washes, pet grooming stations, as well as drive-thru coffee shops accompanying quick service retail offerings.
“For investors, the service station and convenience store sector in Western Australia continues to offer a strategic blend of an essential service with income security, reliable cashflow and an investment with a high underlying land value,” Cash said.
