This article is from the Australian Property Journal archive
LISTED petrol station property trust Viva Energy REIT has bought eight service stations for $89.1 million, excluding costs, on a tight cap rate of 5.6%.
The latest transactions bring Viva’s total acquisitions since IPO to $115.3 million, following the purchase of four stations for $26.2 million in February this year. Including transaction costs, both deals total $122 million.
The eight stations have a weighted average cap rate of 5.6% and weighted average lease expiry of 10.8 years.
The eight Shell service stations are located at:
- 285 Fitzgerald Road Laverton North VIC, a 17,480 sqm site bought for $21.6 million on a 5.3% cap rate
- 1182 Sydney Road, cnr Leo StreetFawkner VIC, a 3,585 sqm site. $9.3 million on a 5.7% cap rate
- Cnr Doherty & Palmers Roads Truganina VIC, a 4,876 sqm site. $9.0 million on a 5.1% cap rate
- Cnr Cranbourne Frankston Road & McClelland Drive, Langwarrin VIC, a 2,407 sqm site. $5.7 million on a 5.4% cap rate
- Exit 54, lot 10 Old Pacific Highway Coomera QLD, a 9,765 sqm site. $19.3 million on a 5.9% cap rate
- 442-444 Enogerra Road Alderley QLD, a 1,996 sqm site. $9.7 million on a 5.4% cap rate
- 731 Windsor Road Rouse Hill NSW, a 3,108 sqm site. $10.5 million on a 5.4% cap rate
- And 7 Gillard Crescent Cossack, Katherine NT, a 15,200 sqm site. $4.0 million on a 8% cap rate.
“Our focus is on acquiring properties that complement VVR’s existing portfolio,” managing director Margaret Kennedy said.
“We are pleased to have the opportunity to acquire these good quality and strategically located properties, which further diversify our existing portfolio. These acquisitions clearly demonstrate our ability to effectively source and secure properties in a competitive environment,” she added.
The acquisitions will boost Viva’s portfolio to 437 properties valued at $2.22 billion.
Kennedy said Viva also has 10 properties with an estimated value of approximately $45 million currently under due diligence.
As a result of the acquisitions, Viva has revised distributable earnings per security guidance for the year ending 31 December 2017 of 13.2 cents, up from the PDS forecast of 13.07 cents per security.
Viva will fund the purchases with an institutional placement of $80 million, at $2.31 per stapled security, representing a 2.9% discount to the closing price of $2.38 on 21 June 2017 and a discount of 3.6% to the 5 day volume weighted average price of $2.396.
Australian Property Journal