Australian petroleum company Ampol announced it will be selling 51 of its subsidiary Z Energy Limited’s freehold properties to an unlisted property company.
Z Energy will continue to own a 51 per cent majority interest in the business while Charter Hall Retail REIT is set to acquire the remaining 49 per cent.
The stated sale price in the deal is $132 million for an inferred portfolio valuation of $269 million with a 5.5 per cent portfolio capitalisation rate. Approximately NZ$126 million will be delivered in net proceeds after tax and other costs.
Initial rent is $15 million while annual rent escalation is set at a 2 per cent floor and 5 per cent cap.
Z Energy will maintain strategic and operational control of the sites and lease all sites back under long-term triple net lease arrangements.
The property firm is also intended to remain ungeared and is expected to be consolidated for accounting and ratings purposes.
The transaction is expected to complete by the end of October 2022, subject to satisfaction of certain conditions precedent.
The net proceeds will be used for general corporate purposes and in line with Ampol’s Capital Allocation Framework.