This article is from the Australian Property Journal archive
APN Property Group has received a vote of confidence from investors for its $308 million service station trust ahead of its ASX debut.
Shareholders overwhelmingly supported the resolutions required for the float yesterday before APN announced last night it had completed its institutional offer bookbuild and cash facility offer bookbuild at $3.00 per stapled security, having looked to investors to raise $162 million.
The trust will hit the ASX tomorrow with a portfolio of 66 service stations and convenience retail assets with occupancy of 99.4%, WALE of 13.6 years and WACR of 7.2 years.
It has a forecast distribution yield of 6.50% for the 2018 financial year, and of 6.75% for fiscal 2019.
The trust will be anchored by an agreement with petrol group Puma Energy Australia, which will account for roughly two-thirds of the portfolio. The new REIT will have first right of refusal over any site Puma acquires, develops, sells or disposes.
At the end of 2016, Puma operated 2,519 services stations in 47 countries and generated US$12.7 billion in annual revenue.
The remainder of the portfolio will be made up of Woolworths, 7-Eleven and Caltex sites, as well as Viva Energy Australia and complementary service providers including McDonald’s, KFC and Subway.
APN will hope to emulate the solid performance of the Viva Energy REIT, which became the country’s first pure-play service station trust upon listing last year.
Australian Property Journal