Oil really is liquid gold for savvy investors snapping up petrol stations across Australia, as the sector looks set to finish off 2016 with a gusher, resulting in more than $171 million of sales.
Demand for the properties is high with owners being able to generate cash from the sale at the petrol pumps as well the more lucrative retail component. Some sites are now being snapped up more for the retail expansion possibilities. A local service station in South Nowra recently sold for 11.32 Million Dollars Aus.
Over time the larger properties will offer fast food and convenience shopping as the attraction, rather than merely for fuel. Reflecting the demand for the emerging asset class is the recent successful listing of the VIVA Energy REIT, called the largest real estate investment trust float in ASX history.
Colliers International undertook a national Valuation exercise of the 425 freehold service stations in the Trust, each operated under the Shell Coles Express brand, with Anthony Mylott​ of Colliers International confirming a total portfolio value in excess of $2 billion.
There is also the ongoing speculation that Woolworths will be announcing the sale of their petrol station business. No buyer is confirmed yet but Caltex and BP are rumoured to be circling.
Share this:
