Forecourt Trader - 30 years at the heart of the fuel retailing community

Positive outlook as forecourt property prices continue on upward trajectory

20 January, 2016

The forecourt sector in 2015 saw the conclusion of a seismic shift in ownership that has seen oil companies divesting assets and tying purchasing independents into supply agreements, according to Steve Rodell, managing director of the retail division of property specialist Christie & Co.

In the company’s latest business outlook, ‘The Future of Business Revealed’, Rodell says around 70% of all sites were independently owned against 60% just five years ago.

“This has resulted in the rise of the ‘super dealers’ including Rontec, Euro Garages, MRH and Motor Fuel Group, who have all taken significant packages from the oil companies.”

He said this activity attracted private equity into the sector as investors saw an opportunity to buy a platform from which to acquire other operators.

However, with the liquidity of funding, general appetite for acquisition and the lack of good stock, as well as less multi-site purchasing opportunities coming from the oil companies, the pressure on the supply of good forecourts would continue to push up prices.

"This is good news if you’re planning to sell up, but would make it very difficult for new entrants to the sector."

Some operators have considered leasing their sites rather than selling the freehold interest, and in many cases have been able to generate significant rents when the right opportunity presents itself. 





  • Weekly
    Retail
  • Weekly
    wholesale
  • Daily
    Average
Weekly retail fuel prices: 20 May 2019
RegionDieselLPGSuper ULUL
East135.9360.77140.55130.16
East Midlands135.28141.26129.82
London135.21142.69130.48
North East134.06140.71129.20
North West134.87139.96129.27
Northern Ireland131.95135.90127.71
Scotland135.09139.31129.71
South East135.9463.57142.34130.70
South West135.01139.53129.65
Wales134.52138.23128.74
West Midlands134.83141.89129.64
Yorkshire & Humber134.1257.70141.27129.10

Most read

Following last month's London protests and damage to Shell's UK HQ, do you believe forecourts should be preparing themselves in case of possible attacks by climate change campaigners?