APN Funds Management is outlaying $24.4m on two convenience retail investments.
At Riverview, in suburban Brisbane, and Dubbo – 400km west of Sydney – the assets will be held by the APN Convenience Retail REIT (AQR), which is now worth $762m.
The blended yield is 5.5 per cent.
The New South Wales property is being acquired on a funds-through basis; it is due for completion in March.
Fund now worth $762m
The priciest new investment, Riverview’s Warrego Highway Travel Centre, is costing $16m.
Completed two years ago, more than 60pc of its income comes from Ampol; Carl Jr and two local retailers contribute to the balance.
“The property’s Weighted Average Lease Expiry is 11.5 years and the average rental growth is 2.9pc, pa,” the buyer said.
“Dubbo…will comprise a Mobil service station and a Carl Jr restaurant with drive through,” it added.
Its WALE is 12 years (story continues below).
“[This] sale is conditional upon both tenants novating the existing agreement for leases over to the fund, which is in the process of occurring”, according to an APN statement.
AQR fund manager Chris Brockett said “we have a healthy pipeline of identified opportunities and look forward to further leveraging Dexus’ platform to continue to deliver on our strategy of investing in strategically located convenience retail assets that provide investors with an attractive, defensive and growing income stream”.
The acquisitions come a month since the trust outlaid $28.6m on servos at Gordonvale and Kingston – both in Queensland.
In May, the manager spent $35.5m on a portfolio of South Australian convenience retail investments.
Following settlement of the Riverview and Dubbo assets, the fund will hold111 properties.
The portfolio’s WALE is 11.8 years.
It is capitalised at 5.9pc.
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