Deal well received as 200 Ampol servos sold
Charter Hall’s acquisition of a $682m stake in the Ampol petrol stations with partner GIC has been well received by some analysts, who say the price paid is less than expected.
They also add that it reinforces the view that Charter Hall will not need to raise equity, given that the listed company will only invest $34m of its own capital for the transaction. Charter Hall’s capital partner, the Singapore sovereign wealth fund GIC, is offering up the remainder.
The leases expire between 11 and 22 years and the properties will be held in an unlisted property trust.
Earlier, the expectation was that the 49% interest in the portfolio that Charter Hall was in negotiations to buy would have been worth about $1bn.
However, the group only sold 80% of its portfolio of 250 sites, with the remaining 47 to remain subject to review and vended into the trust over time.
The transaction values the entire portfolio of 203 petrol stations at $1.4bn with a yield of 5.5%.