APN Convenience Retail REIT has boosted the value of its portfolio to more than $450 million with the acquisition of a prominent service centre near Brisbane Airport.

Brisbane Airport Link is anchored by a 15-year lease to Ampol, which is operating a Caltex and Foodary operation at the site, representing 78 per cent of the income.

The remainder of the income is derived from Zarraffa’s Coffee and a local restaurant operator, Amhet’s.

At a glance:

• APN Convenience Retail REIT has acquired the newly built Brisbane Airport Link from a private Brisbane-based developer for $10.5 million.
• The purchase price reflects a yield of 6.15 per cent with the property offering a WALE of 12.6 years.
• The deal was negotiated by CBRE's Michael Hedger and Darren Collins.

CBRE’s Michael Hedger and Darren Collins negotiated the sale of the property on behalf of a private, Brisbane-based developer.

The purchase price reflects a yield of 6.15 per cent with the property offering a WALE of 12.6 years.

AQR Fund Manager Chris Brockett said the acquisition represented an outstanding opportunity to own a prominent service centre where all tenancies benefit from visual exposure as well as introducing another major fuel tenant, Ampol, to the fund’s tenancy mix.  

"The site is strategically located in a precinct that will service high volumes of diesel sales given the density of industrial holdings within the immediate area, and its proximity to courier, taxi, and car rental services stemming from Brisbane Airport," he said.

The centre is situated on the East West Arterial Road, providing exposure to over 100,000 cars daily.

The site is also the last eastbound travel centre heading to the Gateway Motorway.

Mr Hedger noted said retail investments such as Brisbane Airport Link, which offer a long WALE, provided certain income growth and were underpinned by strong tenancy covenants, remained highly sought after.

"We are seeing strong demand in the service centre and neighbourhood retail sectors, with investors becoming more focussed on the properties with resilient income profiles that have performed strongly in the current COVID climate," he said.

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