Fawkner Property has sold its BP Barnawartha for $21m to a private investor. Picture: Supplied
Fawkner Property has sold off the BP Truck Stop in Barnawartha in northeast Victoria for $21.27m, marking the largest single-asset deal in the state’s roadside fuel and convenience sector for more than three years.
The sale shows the strength of investor appetite for core energy and convenience assets, particularly when underpinned by secure long-term leases and embedded rental growth.
The asset, held in Fawkner’s Essential Services Trust No. 10, delivered an 83.29 per cent return on equity to unitholders since it was acquired in 2017.
The sale to a private investor was struck at a premium to net tangible assets and book value, backing Fawkner’s thesis of investing in high-quality fuel and convenience real estate.
The deal was brokered by Stonebridge’s Rorey James, Justin Dowers, Kevin Tong, and Michael Collins.
The return to unitholders is further was aided by Fawkner Property’s longstanding policy of not charging performance fees across its funds.
Originally acquired in May 2017 for $14.15m at a 7.11 per cent initial yield, the purpose-built 2.3ha truck stop is on a strategic position on the Murray Valley Highway, adjacent to the Hume Highway interchange.
Fawkner Property director, capital transactions and property, Sam Ellis, said while the company was a reluctant seller given the quality of the asset, the trust maturing created the sale event. “The Barnawartha transaction demonstrates the strength of investor demand for blue-chip covenants and premium roadside assets, even at higher price points,” he said.
Fawkner’s Property bought the truck stop for $14.15m in May 2017. Picture: Supplied
Fawkner Property founder and chief investment officer Chris Garnaut noted the outstanding performance for investors. “Our policy of not charging performance fees ensures that every dollar of outperformance is returned directly to our investors,” he said.
Fawkner Property controls about $1bn in mobility, energy and convenience assets nationwide, alongside a growing retail and a shopping centre portfolio of about $5bn.