Burgess Rawson | Industry Insights Report

SUMMARY KEY FINDINGS

MARKET OVERVIEW

Convenience retail has become a highly sought-after asset for institutional and individual investors alike due to the appeal of prime locations and Multi-national long term lease covenants.

SALES ANALYSIS

Investors are still actively seeking quality commercial assets in convenience retail, which provide stability and guaranteed returns through longer leases and the ability to command a premium, reflecting the current trend of investors pursuing security after the pandemic. Cap Rates (or valuation) of this asset class appears to have been less impacted by rising interest rates than other property asset classes.

FAST FOOD

The co-location of convenience retail and fast-food operators generates mutual growth for both operators. Fast food is a robust, recession-proof product that has continued to show growth during economic uncertainty. As fast-food operators seek desirable, densely populated catchments, they coincide with the prerequisites of convenience retail operators.

EV

The low uptake of EV vehicles coupled with the ongoing sale of traditional fuel-based vehicles suggests the demand for fuel distributors will be with us for many years to come. Multi-nationals continue to roll out new sites with a 10 to 15 year commitment.

WHATS NEXT FOR CONVENIENCE RETAIL?

Investing in fuel and convenience retail sites can offer investors exceptional tenants, great locations, and strong returns compared to other industries, with the potential for redevelopment options in prime regional and metro areas upon lease
completion.

BANNER SERVICE STATION & CONVENIENCE STORE PROPERTY FUND

The Banner Service Station and Convenience Store Property Fund focuses on developing and holding state-of-the-art fuel stations and convenience stores, with a growing portfolio of long-term leases to national fuel companies and convenience store operators. As an investor in this fund, you can expect to receive stable long-term income from the leases, as well as developer profits and potential capital appreciation. Whilst many funds acquire existing portfolios of service stations, the Banner Fund builds and develops new stations, creating a portfolio of modern, state of the art properties. This approach allows investors to benefit not only from a long-term income-generating asset, but also from the potential capital profits associated with the development of each site.

To find out more about the Banner SS&CS Fund, click here or email enquiries@bannerassetmanagement.com