Fawkner, Waypoint trade $142m convenience retail portfolio

Fawkner Properties has acquired a portfolio of 29 convenience retail assets from ASX-listed Waypoint REIT, formerly known as the Viva Energy REIT.

The $141.8 million purchase price reflects a blended implied yield of 6.03 per cent.

The portfolio Weighted Average Lease Expiry is 9.2 years.

The off-market transaction is conditional on Viva Energy Australia and Coles Group passing up its Rights of First Refusal by the end of next month; either group could purchase the assets on the same terms.

If approved, it would be the second portfolio of service stations Waypoint has sold to Fawkner, following a $113.9m deal for 31 assets last July.

Portfolio summary

Twenty five of the service stations in the latest portfolio – worth a total of $119m and being acquired at a blended 6.08pc return – are located in the regions (story continues below).

Two more – priced at $11.9m overall – are in capital cities, while the balance are in other metropolitan locations.

All of the assets are branded Shell Coles Express and subject to rental agreements with fixed circa-three per cent rent rises.

Waypoint is hoping to settle by June 30.

Fawkner, which will hold the assets in the Essential Services Trust No 20, currently inviting investors, will hold a convenience retail portfolio worth nearly $800m.

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Marc Pallisco

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