Mr Du Rieu noted that the offering coincided with a surge of interest in quality freestanding retail investments since the May Federal election.
“While the market seemed to take a breath during the weeks surrounding the election, buyer interest has again been piqued off the back of the two recent rate cuts from the RBA and the ever low cost of debt for passive investors,” Mr Du Rieu said.
Recent CBRE campaigns for fuel anchored investments in Western Australia include the Shell in Orana and 7-Eleven in Mandurah, both of which attracted interest from multiple bidders.
“We are anticipating a strong level of demand for the Puma offering both from local Perth-based investors and east coast buyers looking to minimise their exposure to state land tax in Victoria and New South Wales,” Mr Cash said.
“This will be underpinned by the very secure, 15-year initial lease term and by the fact that many private investors view new service stations as a stepping stone into the retail investment market.”
Mr Du Rieu attributed the interest in service station investments to the much higher barriers to entry for investors seeking to acquire other retail assets such as freestanding supermarkets.
“To buy a new supermarket leased to Coles or Woolworths, investors would generally have to spend $20,000,000 or more, whereas a service station investment such as Puma Baldivis can be acquired at a much lower price point, while offeing excellent depreciation benefits and a long term lease to a very strong international tenant,” Mr Du Rieu said.
Expressions of Interest in the Baldivis offering close August 29, 2019.
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CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.