A property investment company has acquired an Applegreen petrol filling station in Crawley, West Sussex, for £3.82m.
AEW UK Long Lease REIT plc said the acquisition price reflects a net initial yield of 5.3% and provides it with a lease term of 15 years to expiry with three-yearly rental uplifts linked to RPI, capped at 3.5%.
The site is situated on the A23 dual-carriageway, one mile to the west of Crawley town centre.
It comprises an Applegreen-branded petrol station comprehensively refurbished by the operator in 2015 and occupying a site of 1.5 acres.
The facility provides eight filling points as well as parking for 20 cars, a convenience store, Greggs bakery, Subway sandwich shop and an off-licence.
Alex Short, director of AEW UK Investment Management, and portfolio manager of the company, said: “The income stream provides a strong fit with the company’s investment requirements and in addition is secured against the strong covenant of Applegreen.
“We were particularly attracted by its south-east location and strong trading figures. With some uncertainty surrounding the long-term future of the vehicle fuel sales market we are reassured by the site’s diverse use, not solely relying on fuel sales, and also the operator’s proactive approach in having already begun fitting electric vehicle charging points to a number of its existing network facilities.
“The site’s large size and strong underlying residual value also provided comfort.”