Viva Energy REIT has surged 15 per cent on debut, despite hitting ASX boards as the sharemarket faced its biggest sell-off in a month.

The real estate investment trust houses 425 petrol retail outlets under Shell and Coles Express branding and is being spun out of Viva Energy, a firm created by Vitol’s 2014 purchase of Shell’s downstream business in Australia.

All of the properties in its portfolio are leased to parent Viva Energy, which is seen enjoying a positive week given the successful float of its real estate investment trust and news of record margins for Australian petrol retailers.

Viva Energy retains 40 per cent of the company post-IPO, with the $911 million raising one of the largest floats this year.

The company listed with a value of $1.52bn, with the lift in its share price from $2.20 to a peak of $2.52 pushing its market cap above $1.7bn.

At 12.15pm (AEST), Viva Energy REIT shares had pared their gains, but still traded up 12.3 per cent at $2.47 as investors appeared enthused by the $2.1bn valuation of its sites by Colliers International ahead of the listing.

Viva Energy is the only company with a position in the REIT above 5 per cent, with NAB’s 4.1 per cent holding the next highest.

The trust begins life as a listed company with a gearing ratio of 35 per cent, at the bottom end of its guidance range of 35-45 per cent.

Extracted in full from the Australian Business Review.

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