Four petrol station transactions completed

Posted on March 4, 2021.

FSP have had a strong start to the year in the Roadside & Automotive sector with the acquisition and sale of four petrol stations. Representing LondonMetric in two off-market acquisitions and Savills Investment Management in a sale.

Ben Blackwall, Director at FSP comments ‘we have an excellent track record in the roadside and automotive sector, these type of deals represent strong investments for our clients providing secure long let index linked income, which is heavily underpinned by vacant possession values.  The sale of Calne highlighted the strength of the sector.  Having acquired the property for £3,000,000 in 2014 it was sold to the tenant for £3,275,000.  We were delighted to work with both LondonMetric and Savills Investment Management on these transactions.’

Deal details:

SGN Portfolio, Stamford Hill and Plumstead, London

Two prime modern petrol filling station and convenience stores in London.

The properties are located in Stamford Hill and Plumstead and comprises modern petrol filling stations and convenience stores on sites of 0.3 acres.

The properties were sold by sales and leaseback to T.G Convenience Stores Ltd, guaranteed by SGN Ltd, for a term of 20 years from February 2021.  The leases are both held on full repairing and insuring terms subject to 5 yearly upward only rent reviews to CPIH, collared at 1% and capped at 3% per annum compounded.  The total income across both sites is £280,000 per annum.

The properties were acquired for £5,438,500 which reflects a net initial yield of 4.79%.  Barber Wadlow represented the vendor, SGN.

Ben Blackwall, Director at FSP comments ‘The two properties are excellently located in the affluent London towns of Stamford Hill and Plumstead.  Whilst let to the strong covenant of SGN for 20 years with index linked growth the added attraction was the alternative use underpin which underwrote the pricing by 84%.  The vacant possession values of the sites also underwrote the pricing by 91%.’

Nunnery Park Service Station, Horn Hill Road, Worcester

Prime new build petrol filling station and convenience store in Worcester.

The property is prominently located on the A4440 dual carriageway, one of Worcester’s main arterial roads forming the eastern and southern part of the city’s ring road system.  The property is situated on Nunnery Park, a mixed use development of industrial, trade and leisure uses with occupiers including KFC and Marstons.

The property comprises a 2019 built petrol filling station, convenience store, with integral Greggs concession and valeting facility on a site of 1 acre.

The property is let to Motor Fuel Group for a term of 25 years from March 2019.  The lease is held on full repairing and insuring terms subject to 5 yearly upward only reviews to CPI collated at 1% and capped at 5% per annum compounded.  The current rent is £210,000 per annum.

The property was acquired from a Forelle Estates, who were unrepresented, for £4,000,000 which reflects a net initial yield of 4.93%.

Pippin Service Station, Oxford Road, Calne, Wiltshire

PIPPIN SERVICE STATION, OXFORD ROAD, CALNE, WILTSHIRE

The property is prominently located in the town centre and is let to BP Oil UK Ltd for a further 15 years at a rent of £181,025 per annum.

BP Oil UK has sub-let to Motor Fuel Group for the term of the lease.

The property was sold for £3,275,000 which reflects a net initial yield of 5.19%.  Barber Wadlow represented Motor Fuel Group.

Please contact Ben Blackwall if you require any further information.