Dexus offloads old servos to fund new ones

About 70,000 cars a day pass the Kedron property (also pictured, top).

Dexus, as manager for the Convenience Retail REIT (DXC), has sold two older style Queensland service stations with plans to tip proceeds into buying new ones.

North of Brisbane, the group will bank $4.31 million – 3.9 per cent over its last book value – for 273-279 Gympie Road, Kedron.

The Bundaberg West property (outlined) sold for a 6.2 per cent premium to book value.

In Bundaberg West meanwhile, the fund has reaped $2.57m – a 6.2pc rise on the most recent valuation – for 10 Takalvan Street, at the V-intersection of Woongarra.

Both assets trade as Puma Energry and are leased, with options, to Chevron, until 2074.

The two properties sold following the same bulk auction portfolio event too, held by Burgess Rawson in March; Campbell Bowers and Peter Uebergang from the Brisbane office with Matthew Wright and Rick Jacobson in Melbourne, were the agents.

Also two months ago, DXC acquired the Glasshouse Mountains service station, near Caloundra, which includes a vacant tract it will co-develop with De Luca Corporation (story continues below).

Out with the old

Dexus acquired APN, including control of the trust formerly known as the APN Retail Convenience REIT, which held the Kedron and Bundaberg properties, last year.

“The sale of these older sites has crystalised strong returns for securityholders while also reflecting our disciplined approach to capital allocation,” according to DXC fund manager, Chris Brockett, who added the group is close to disposing another asset.

“The strong pricing achieved reinforces the high-quality nature of the underlying portfolio and demonstrates that service stations and convenience retail property remain highly sought after as a stable and defensive asset class due to their long leases and strong lease covenants with exposure to non-discretionary spending,” he said. “We remain focused on recycling capital into acquisition opportunities that will continue to enhance the overall quality of the portfolio, as well as continuing to actively buy back securities to capitalise on market volatility”.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of