APN adds six 7-11 stores to convenience REIT

The APN Convenience Retail REIT has agreed to acquire a portfolio of six service station and convenience retail properties located in Queensland collectively for $59 million, representing an average purchase yield of 5.50%.

The properties were all newly built between 2014 and 2017, with over 80% of the income securely leased to major tenants 7-Eleven (68% of income), Oporto (6%), Anytime Fitness (5%), Thrifty Car Rentals (3%) and BWS (3%). The remainder of the rent is derived from other national and local convenience retailers as well as two telecommunication towers leased to Telstra and Vodafone.

The combined weighted average lease expiry of the portfolio is 10.1 years and the weighted average rent review is 3.19% per annum.

AQR Fund Manager, Chris Brockett said: “This is another exciting portfolio acquisition which reflects our ongoing active approach to growing the portfolio in a prudent and disciplined way.

These properties are outstanding examples of well located, designed and built service station and convenience retail centres, with a great mix of national and local retailers. All sites are strategically located on main arterial roads and are exposed to high traffic flows.”