Geoff Brunsdon and the seven brokers pitch petrol station IPO

Sarah Thompson  Anthony Macdonald  Joyce Moullakis
June 30, 2017
AFR

Merrill Lynch’s former head of investment banking Geoff Brunsdon is overseeing petrol station property owner Convenience Retail REIT’s slated $236.8 million listing, in his role as chairman of APN Funds Management. 

In an offer document sent to the corporate regulator, Brunsdon told potential investors that Convenience Retail REIT would come to market with 66 properties leased to petrol station operators Puma Energy Australia, Woolworths, 7-Eleven and Viva Energy Australia, which were independently valued at $308 million.

The deal was pitched at a 6.5 per cent distribution yield based on 2018 financial year forecasts, growing to 6.79 per cent in fiscal 2019.

Brunsdon made the pitch as chairman of APN Funds Management, which will manage the new property fund. Other directors include former National Australia Bank executive Michael Johnstone, former Greenhill Australia chief operating officer Jennifer Horrigan and APN Funds Management veteran Howard Brenchley.

The document outlined an up to $162.2 million raising at $3 a security, which would put a $236.8 million market capitalisation on the company. 

If successful, the fund would hit the ASX boards on July 27 as Street Talk reported earlier this week. 

Bank of America Merrill Lynch and UBS are running the deal as joint lead managers and bookrunners, while Evans and Partners is a joint lead manager and Petra Capital and Morgans are on board as co-leads.

Co-managers include Crestone Wealth Management and National Australia Bank.

Gilbert + Tobin is doing the legal work, while Grant Samuel was named as debt adviser.