Caltex selling portfolio of prime development sites

Caltex has pitched a portfolio of petrol station sites that are “apartment ready” at investors, worth more than $100m in total.

The petrol company has identified the first 25 service stations it will list for sale as part of its recent announcement to divest a total of 50 under performing stations and sell the land, which would be of a higher value than the business.

GALLERY  

The company says 240 stores are under review as deeper analysis of its retail strategy is undertaken, but will remain part of the network.

It identified about 500 sites as performing strongly on returns and growth but has downgraded capital investment forecasts for its whole year after a weak first half.

Down from an original guidance range of $320 million to $385 million, Caltex now expects to spend about $300 million on capital investment this year.

Caltex reported a 54 percent drop in benchmark profit, amid a tough climate in both retailing and global refining prices.

The company has rolled out fresh food Foodarys at metropolitan locations in an effort to offer an alternative convenience store, installing 63 so far.

It is now taking steps to reduce costs by $100 million a year, firstly selling its metropolitan petrol station assets that are attractive to developers and investors.

The newly-listed sites vary from 1200 to 2000-square-metres and would be suitable for low-rise apartment developments of 30 to 80 units.

Of the first 25 sites, 16 are located in NSW, seven in Victoria, one in WA, and one on the Gold Coast.

They can be bought individually, in batches or potentially as one portfolio, with sales tipped to go for $1.5 million to $12 million, or more than $100 million in total.

Caltex chief development officer David Bridger said that the sites will be closed by the first quarter of next year.

“These sites are ideal for low- to medium-rise apartment development, located in attractive, high-demand areas with strong growth opportunities,” he said.

“They also possess long-term development prospects that will appeal to a large number of prospective buyers who are looking at delivering a range of different end products into the inner metro markets.’’

CBRE’s Mark Wizel and Julian White alongside Stonebridge director Lincoln Blackledge have been appointed to market the sites on behalf of Caltex.

Mr Wizel said they provided an opportunity for developers looking at apartment, build-to-rent, mixed-use, retail and hotel opportunities.

“These sites are being offered at a time of strong ongoing demand for low- to medium-rise apartments, which are now in short supply due to the lack of development site opportunities within metro areas, particularly in Melbourne and Sydney.

“The fact that the bulk of the sites are extremely well located to transport, schools and town centres make them ideal for apartments, but for the same reasons they are also well suited to a range of other uses,’’ Mr Wizel said.

Images courtesy of Caltex

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