Hitting $1B in Retail Fuel Sales: A success story from the market leaders

Published on: 17 December 2020

Burgess Rawson has announced more than $1 billion in retail fuel sales, cementing its market leadership of the sector.

Since 2016, our expert team has transacted:

  • 217 number of fuel properties
  • $1,022,070,758 combined value

“The strength of essential service-leased freehold investments is due to increased demand from investors looking for “defensive” assets that can trade through any situation.

Burgess Rawson Director Jamie Perlinger said to achieve the sales milestone in just five years and during 2020 shows the ongoing demand for quality retail fuel investments.

The nearest competitor sold just 40 properties worth a combined $259,000,000.

“And this is just the tip of the iceberg,” he said. “With each auction campaign, more and more underbidders are left wanting more.

“High profile tenants, long lease terms, strong underlying land values and convenient, high-profile sites make fuel investments a top priority for investors.”

This demand for fuel properties will only increase with road traffic volumes returning to pre-COVID levels in every capital city.

Used car sales are up and public transport use is down. These trends will create very favourable conditions for retail fuel sales. The next 12 months is shaping up to be another stellar year for fuel investment.”

In addition, parcel pick up and ‘click and collect’ services by the likes of 7 Eleven, Coles, Woolworths and Australia Post have become even more popular during COVID-19.

68% market share

In 2020, there have been 85 freehold investments worth $470 million traded in the open market across the fuel sector Australia-wide.

Mr Perlinger said Burgess Rawson handled 58 of these sales, representing a market share of 68%.

“Our team has ten times more experience in the sector than any other agent,” said Mr Perlinger.

The strength of essential service-leased freehold investments is due to increased demand and competition from many investors who are, now, looking only for “defensive” assets that can trade through any similar situations, should they arise in the future.

Highlight sales with lowest yield

  1. Viva Energy, Camberwell VIC, SOLD $6.5m 2.06% yield
  2. 7 Eleven, Penrith NSW, SOLD $4.95m 3.67% yield
  3. Viva Energy, Minto NSW, SOLD $2.96m 4.52% yield

Looking ahead

We are already gearing up for a large first Portfolio Auction for 2021 with a great line-up of retail fuel investments. Join us on Wednesday 24 February 2021 – Crown Casino Melbourne.

To discuss your investment goals, please contact our market leading fuel team.