AUSTRALIA’S retail property investment market will receive another injection of fuel station stock, with 7-Eleven set to offer 15 properties across the country at Burgess Rawson’s Sydney and Melbourne portfolio events later at the end of the month.
The offering follows Caltex putting 25 service station and convenience store properties to the market, as it moves ahead with plans to offload at least 50 freehold sites across the country that it believes offer best use as residential redevelopments.
As much as $70 million could be reaped from the sale of the 7-Eleven properties, with top price tags expected from sites in Campbellfield, of $7 million and subleased to McDonald’s, of $5.3 million in Braddon, and $3 million on Parramatta Rd in Clyde.
Other properties going under the hammer include Colyton, Liverpool, Seven Hills, St Marys and Toongabbie in Sydney, Croydon, Ferntree Gully, Mornington and Rockbank in Melbourne, Ellenbrook in Perth, Holt in Canberra, and Marks Point in Newcastle.
7-Eleven is hoping to free up capital that it can put towards adding 30 new stores to its total of 700 nationally, while it has plans to upgrade 293, introduce parcel locker services at 400, and improve fuel infrastructure at 13.
Caltex announced the portfolio sale after booking a $54 million hit to its interim profit, and publicly stepped back from its earnings promise of $120 million and $150 million by 2024, given difficult economic conditions.
Of its 790 company-owned and operated petrol stations, 500 will be kept, and another 240 sites are yet to be reviewed. To keep pace with retail and convenience trends, Caltex has converted 63 of its stations have been converted in Foodary sites that also sell fresh foods.