7-Eleven offers final chance to buy 18 fuel outlets

National fuel and convenience retailer 7-Eleven will auction a second and final portfolio of 18 stores across Australia, as demand for the assets hits fever pitch.

The blue-chip properties spanning Victoria, New South Wales, Queensland and the ACT will be auctioned individually at a special Burgess Rawson auction event in Sydney and Melbourne on Tuesday, February 25.

With favourable leasing terms offered, it is anticipated that they could fetch a combined $70 million.

The auction comes hot on the heels of the breakaway success of a similar Burgess Rawson event in October, in which 15 7-Eleven outlets were sold for a combined $75 million, at a 100% clearance rate.

Burgess Rawson director Billy Holderhead says it is the last chance to secure a 7-Eleven asset under these conditions.

The 7-Eleven at Corio in Geelong will be auctioned as part of the portfolio.

“This is definitely the last time a tranche of 7-Eleven stores will be offered in a portfolio scenario,” Holderhead says.

“The quality of the leases to Australia’s number one convenience retailer, along with conservative rents and overwhelming potential for growth, make these assets one of the best opportunities likely to be brought to market in 2020.”

In Victoria properties will be sold at Corio, Pascoe Vale South, Pascoe Vale, Upwey and Wantirna, while in NSW Minchinbury, Maryville, Mayfield West, Penrith South, Plumpton and Wahroonga stores will be auctioned.

The ACT assets are located in Mawson, Melba, Spence and Wanniassa, and in Queensland a property neighbouring the Dreamworld theme park at Coomera, along with one in Nambour, will be put on the block.

The 7-Eleven at Wantirna South comes with a large block of vacant land.

Each property will be offered on a ‘sale and leaseback’ basis, with 7-Eleven taking up brand new 12-year leases plus options to 2052, while rental significant growth is guaranteed through annual, fixed, compounding 3% increases.

Each lease features highly sought-after ‘net’ terms, with 7-Eleven paying all rates, repairs, maintenance, building and public liability insurance.

The properties currently generate net annual rents of between $116,904 (Wahroonga, NSW) to $327,083 (Wantirna, VIC).

As Australia’s largest convenience and independent fuel retailer in Australia, 7-Eleven currently operates around 685 outlets across its franchise and corporate network, and accounts for 39% of Australia’s total convenience market.

The 7-Eleven portfolio auction will be held on Tuesday, February 25 from 10.30am at 55 Margaret St in Sydney, and continue at 1pm in the River Room at Crown Casino in Melbourne. Investors can also bid from Burgess Rawson’s offices in Brisbane, Perth and Canberra.