Convenience Retail REIT to list at premium

Source: www.theaustralian.com

The coming listing of the Convenience Retail REIT offers investors a chance to invest in a portfolio of petrol stations, fast food outlets and convenience-based consumer offerings. Convenience Retail REIT is managed by ASX-listed APN Property Group, manager of about $2.4 billion of real estate-focused securities. Convenience Retail’s portfolio will consist of 66 properties, mainly in the eastern states, and APN seeks to raise $162.2 million — one of the largest IPOs so far this year. The closest comparable is newly listed Viva Energy REIT, which is trading near its IPO price 12 months after floating. Income visibility of Convenience Retail’s portfolio is high as a result of an average lease expiry of 13.6 years, and 99.4 per cent occupancy at the date of the prospectus. Barriers to entry in the industry are high as service stations are operated under long-term alliance agreements, thus creating a challenging environment for new competitors.