Australian company Ampol has announced it is selling 51 of its freehold Z Energy properties to an unlisted property vehicle.
The $132 million deal will see Z Energy, a wholly owned subsidiary of Ampol, continue to own a 51% stake and ASX-listed Charter Hall Retail REIT will acquire a 49% minority interest.
“The transaction is an extension of the partnership with Charter Hall in Australia and is in line with Ampol’s ongoing strategy to evaluate value maximising opportunities for its core freehold sites,” Ampol says.
Z Energy will maintain strategic and operational control of the sites and lease all sites back under long-term triple net lease arrangements.
The transaction is expected to complete by the end of October this year, subject to satisfaction of certain conditions precedent.
This deal follows Ampol’s $2 billion acquisition of the Z Energy business in New Zealand earlier this year.
Ampol did not identify which 51 sites the deal concerns. As of May of this year, there were 227 Z Energy stations in New Zealand.
Initial rent is valued at $15m, with annual rent escalation rated 2% floor and 5% cap.
“The property vehicle is also intended to remain ungeared and is expected to be consolidated for accounting and ratings purposes,” Ampol adds.
“The net proceeds will be used for general corporate purposes and in line with Ampol’s Capital Allocation Framework.”
