VIVA Energy’s real estate arm has snapped up a newly built service station in Brisbane’s south to add to its expanding portfolio.
Viva Energy REIT paid $10.8 million for the property at 338 Ipswich Rd, Annerley, in a deal struck by Raine & Horne Commercial’s Paul Flego.
Last year Mr Flego sold the virtually vacant 2463sq m outbound site, which was previously owned and occupied by Clements Cars and 4WD, to a local developer off-market for $3.75 million plus GST.
The property was a design and construct play and Viva Energy Australia signed a 15-year lease plus four five-year options for the Shell/Coles Express service station.
Mr Flego said after the lease was struck the vendor conducted a “full blown” national campaign to sell the property.
“We received so many inquiries from NSW, Victoria and Queensland made up mostly of wealthy individuals and syndicates,” he said.
“But Viva made the offer a day before the auction which was accepted.”
The sale realised a yield of 5.31 per cent.
Viva Energy Australia, which was formed three ago after oil trading giant Vitol’s $2.9 billion acquisition of Shell’s oil refinery and fuel retail business, last year floated its portfolio of service stations as a real estate investment trust.
In February Viva Energy REIT announced to the ASX it will acquire four Shell/Coles Express service stations, two in NSW, one in Northern Territory and 338 Ipswich Rd, Annerley, for $26.2 million:
Mr Flego said Trust was in expansion mode.
“They want the cream of the crop and they can pick and choose,” he said.
“This is the first outbound service station off the Story Bridge … with 55,000 vehicles a day passing it so it was very desirable.”
Extracted from Courier Mail.