Fuel and convenience store retailer Caltex Australia has kicked off the sale of a $100 million-plus offering of 25 petrol stations as foreshadowed in its half-year results in August.

The 25 petrol stations are the first tranche of 50 sites Caltex will initially divest as part of plans to optimise its national retail network and generate future earnings growth.

The 50 sites selected so far as part of an ongoing review of the Caltex property portfolio have been identified as having a better and alternative use due to their underlying land value, rather than benefiting from an enhanced convenience retail offering.

The first tranche of 25 sites comprises 16 in NSW, seven in Victoria, one in WA, and one on the Gold Coast.

Among the locations up for grab are sites in Surfers Paradise, Bondi, Mascot, Box Hill, East Brunswick and Perth.

The 25 sites can be bought individually, in batches or potentially as one portfolio with prices expected to range from $1.5 million to $12 million, or more than $100 million in total.

Sites range in size from 1200 to 2000 square metres and could potentially support low-rise apartment developments of 30 to 80 units.

All 25 sites will be closed by the first quarter of next year.

Caltex chief development officer David Bridger said the 50 freehold metropolitan sites were aimed at the apartment and mixed-use market.

“These sites are ideal for low to medium rise apartment development, located in attractive, high demand areas with strong growth opportunities,” he said.

“They also possess long-term development prospects which will appeal to a large number of prospective buyers who are looking at delivering a range of different end products into the inner metro markets.”

CBRE’s Mark Wizel and Julian White alongside Stonebridge director Lincoln Blackledge have been appointed to market the sites on behalf of Caltex.

Mr Wizel said they provided an opportunity for apartment, mixed use, retail, hotel and build-to-rent developers.

“These sites are being offered at a time of strong ongoing demand for low to medium rise apartments which are now in short supply, due to the lack of development site opportunities within metro areas, particularly in Melbourne and Sydney.

“The fact that the bulk of the sites are extremely well located to transport, schools and town centres make them ideal for apartments but for the same reasons they are also well suited to a range of other uses,” Mr Wizel said.

Extracted from AFR