A private equity fund is running the ruler over a portfolio of 17 east coast petrol stations developed by lawyer, property investor and restaurant owner Konfir Kabo.
The deal for the fuel outlets, anchored by Shell, BP, Caltex, Viva Energy, Puma, Westside, Metro Petroleum and United Petroleum, was believed struck for a figure below $60 million, but nevertheless at the upper end of the quoted range price.
The purchasing fund is understood to be an Australia-based private equity with the involvement of offshore investors.
Thirteen of the fuel outlets are in Victoria including regional locations such as Bendigo, Echuca, Albury, Gisborne and Ballarat, as well as in Narre Warren and Wollert in Melbourne’s outer suburbs. Three are in NSW and one is in Queensland.
Selling agent Colliers International’s Daniel Wolman would not confirm the portfolio buyer’s details.
Mr Wolman said the petrol stations attracted significant interest from private investors and institutional players seeking both individual assets and the entire portfolio.
“We have shortlisted a buyer,” he said.
The 17-strong portfolio was offloaded by syndicate steered by Melbourne-based Mr Kabo.
The small group of investors developed the properties over a five-year period and intend to sell the sites to free up capital for further service station developments.
Indonesian-born Mr Kabo heads up boutique law firm Kabo Lawyers, which has offices on Collins Street and specialises in migration and property law.
As well as property interests, Mr Kabo owns noodle bars in Melbourne and is in partnership with Thai giant CP Foods to roll out 1000WAT fast food kiosks across Australia, opening venues Chadstone Shopping Centre and Emporium Melbourne.
Thirteen of Mr Kabo’s petrol stations are operating, the other four are expected to be completed by early 2018.
The outlets currently return leasing revenue of $2.51 million a year, a figure projected to rise to $3.505 million once the other service stations are completed.
Mr Kabo said he was developing more stations. “That’s where the opportunities are. We’ve got a few more in the pipeline.”
As well as pumping petrol, many service station operators have extended their in-store goods offering to resemble small convenience stores, quasi-supermarkets and/or coffee shops, boosting revenue generated from the site for landowners, according to a recent JLL service station report.
Caltex earlier this year opened a concept store ‘The Foodary’ in the inner western Sydney suburb of Concord.
The store offers daily laundry services, a ParcelPoint pick-up mailing service, fresh food and a coffee shop.
The petrol giant also has supply partnerships with The Corner Store, Brasserie Bread, Sumo Salad, Boost, Guzman Y Gomez and Australia Post.
On the other side of the country, in Western Australia, Puma Energy has partnered with IGA supermarket to extend its convenience offering, JLL said.
Extracted from SMH.