Caltex, which in the midst of navigating an $8.6 billion takeover bid from Canadian convenience giant Alimentation Couche-Tard, is sampling investor interest in the float of a half stake in 250 of its service stations around Australia, forming a $1.1 billion listed property trust.
The fuel retailer also last week signed off on a deal to sell 25 mainly inner-city, high-value petrol station sites for $136 million. The stores were snapped up by Woolworths, which took 10, and Melbourne-based fund manager Oliver Hume, with 12 to be redeveloped.
Charter Hall said it will purchase the half share in BP’s petrol stations in partnership with two of its managed funds, the Charter Hall Long WALE REIT and the Charter Hall Retail REIT.
The group’s Long WALE will control 50 per cent of the partnership and immediately announced it will tap investors with a $350 million equity raising to help fund the purchase.
Charter Hall’s Retail REIT will take a 30 per cent share in BP’s portfolio, funding the $137 million acquisition through asset sales.
BP’s convenience and fuel outlets have a 20-year weighted average lease expiry on triple-net leases with annual CPI rent increases built in.