This article is from the Australian Property Journal archive
AUSTRALIA’S only listed pure-play service station property trust, Viva Energy REIT, has made its first purchase since listing, by acquiring four assets in New South Wales, Queensland and the Northern Territory.
In the same week that it will reveal its maiden half-year results, Viva announced it has picked up four sites for a combined $26.2 million, with a WACR of 6.39% and WALE of eight years.
All four assets are Shell/Coles Express sites, comprising one site in Queensland, two in New South Wales, and one in Alice Springs.
The 2,463sqm 388 Ipswich Road site in Annerley, in Brisbane’s inner south, headlined the acquisitions with a $10.8 million price tag. It transacted with a triple net lease and annual rent reviews of 3%, with a cap rate of 5.3% and an unexpired lease term of 14.9 years plus 4×5-year options.
The remaining properties were sold subject to a double-net lease, annual rent reviews higher of 3.5% or CPI paid quarterly.
A 65,660sqm site at 4979 Pacific Highway in Half Way Creek, NSW sold with Domino’s Pizza as a co-tenant, for $7 million, at a cap rate of 7.5% and with 4.7 years plus 2×5-year options remaining on the lease.
The other NSW site, at 126 Great Western Highway in Blaxland, sold with a fitness centre as a co-tenant for $5.5 million. The 1,506sqm property sold at a cap rate of 7.0% with 4.4 years plus 2×5-year options left on its lease.
The fourth property, at 11 Lilbili Street Braitling, in Alice Springs, sold for $2.9 million at a cap rate of 6.6%. The 48,700sqm site was 10.3 years remaining on the lease.
All properties are expected to settle in the first six months of 2017.
Viva Energy owns 425 service stations across Australia.
Australian Property Journal
