APN pays $10.5m for Brisbane Airport Link service centre

APN Convenience Retail REIT (AQR) has paid $10.5 million for the Brisbane Airport Link service centre, in Hendra.

The deal for 132a East-West Arterial Road, with a local developer, was struck on a 6.15 per cent passing yield.

Ampol is the anchor tenant, operating a Caltex petrol station and Foodary, and contributing to 78pc of the annual income. Zarraffa’s Coffee and a restaurant, Amhet’s, fill the balance.

CBRE’s Michael Hedger and Darren Collins said Brisbane Airport Link’s weighted average lease expiry is 12.6 years.

In April, a new service centre in Melbourne’s north Mernda, also part leased to Ampol for a Caltex and Foodary, traded for $13.1m – a 4.8pc yield.

Brisbane deal connects APN to Ampol

AQR fund manager Chris Brockett said all the tenancies within the Hendra asset benefit from visual exposure.

The deal also establishes a relationship with another fuel tenant, Ampol (story continues below).

“The site is strategically located in a precinct that will service high volumes of diesel sales given the density of industrial holdings within the immediate area, and its proximity to courier, taxi and car rental services stemming from Brisbane Airport.” the executive added.

“The centre is situated on the East-West Arterial Road – providing exposure to over 100,000 cars daily.

“It is the last eastbound travel centre headed to the Gateway Motorway”.

Mr Hedger said retail investments such as Brisbane Airport Link “which offer a long WALE, provide certain income growth and are underpinned by strong tenancy covenants, are highly sought after.”

Investors are becoming more focused on properties with resilient income profiles that have performed strongly in the current COVID climate, the executive added.

Following the Brisbane Rail Link deal, APN’s portfolio will be worth $455m.

Hendra is about nine kms north east of Brisbsane.

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Marc Pallisco

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

Marc Pallisco