APN adds six Queensland servos to convenience fund

APN Funds Management has spent $59 million on six Queensland service stations.

The deal reflects a blended 5.5 per cent yield.

They will be held in the APN Convenience Retail REIT (AQR).

Yesterday, Dexus made a c$320m bid for the Melbourne group, which also controls the APN Industria REIT, direct unlisted property and securities funds.

The service stations

Built between 2014 and 2017, the service stations derive 68 per cent of income from 7-Eleven.

Oporto (which contributes six pc of the revenue), Anytime Fitness (five pc), Thrifty Car Rentals and BWS (both 3pc) are other tenants.

There are also two telecommunication towers, rented to Telstra and Vodafone.

The portfolio’s Weighted Average Lease Expiry (by income) is 10.1 years.

JLL represented the vendor BluePoint Property (story continues below).

“This is another exciting portfolio acquisition which reflects our ongoing active approach to growing the portfolio in a prudent and disciplined way,” AQR fund manager Chris Brockett said.

“These properties are outstanding examples of well located, designed and built service station and convenience retail centres, with a great mix of national and local retailers,” he added.

A Griffin property is the priciest – at $16.6m; this asset includes the Anytime Fitness and BWS tenancy

Two other investments are also worth nine figures – at Holmview, which has the Oporto ($12m) and North Lakes, with the car rental ($10.7m).

The other service stations are in Upper Coomera ($6.9m), Greenbank ($6.6m) and Highfields ($6.2m).

“All sites are strategically located on main arterial roads and are exposed to high traffic flows,” Mr Brockett said.

“Following settlement of this portfolio, which is scheduled to occur in September 2021, AQR’s portfolio will comprise 97 properties valued at $619m, reflecting a weighted average capitalisation rate of 6.2pc and a portfolio WALE of 11.7 years”.

AQR’s gearing will be 32.2pc on a pro forma basis adjusted for the development pipeline, a figure the manager said is “comfortably within the fund’s 25pc-40pc target range”.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.