This article is from the Australian Property Journal archive
THE Dexus Convenience Retail REIT announces has offloaded a pair of older Queensland fuel stations above book value for nearly $7 million, and is on the brink of selling a third.
It has settled on the $2.57 million sale of 10 Takalvan Street in Bundaberg West, at a 6.2% premium to book value, and has exchanged contracts to sell 273-279 Gympie Road in Kedron for $4.31 million, at a 3.9% premium. Settlement is expected early next month.
Both sites were branded Puma Energy and leased to Chevron.
“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,” Chris Brockett, DXC fund manager said.
“We remain focused on recycling capital into acquisition opportunities that will continue to enhance the overall quality of the portfolio, as well as continuing to actively buy back securities to capitalise on market volatility.”
DXC said it is also in advanced negotiations regarding the potential sale of a third property.
Valuation gains drove 90% growth in DXC’s interim statutory profit growth to $40 million, while it made $73.7 million of acquisitions during the period.
