Charter Hall (ASX:CQR) buys Gull petrol stations, deepens relations with Ampol

August 03, 2022 02:52 PM AEST | By Sonal Goyal

Charter Hall (ASX:CQR) buys Gull petrol stations, deepens relations with Ampol — Image source: © Murrstock | Megapixl.com

What’s up with CQR today?

Through an ASX announcement, Charter Hall Retail shared that it has acquired 18 Gull petrol stations in New Zealand and invested in an extended partnership with Ampol Ltd (ASX:ALD).

In a statement, the company said that these acquisitions have increased its exposure to a ‘growing inflation-linked earnings stream’ by almost 2%. According to the announcement, all leases for the Ampol portfolio and Gull are NNN (triple net) leases, capital light, and annual CPI-linked reviews.

NNN is an agreement in which the lessee agrees to bear all the expenses related to property, such as the maintenance cost, building insurance and real estate taxes.

The company would fund these transactions via existing investment capacity.

Expansion of partnership with Ampol

CQR has expanded its partnership with Ampol by acquiring a 5% interest in the Charter Hall partnership that owns 204 Ampol convenience retail assets (APT).

The assets of APT are well positioned as 83% of them are located in commuter metro locations, and 85% are located on the eastern seaboard of Australia. WALE of the portfolio is 17.7 years.

The Gull service stations acquired by Charter Hall

The Gull convenience retail portfolio in NZ is located in metropolitan centres. 56% are in Auckland, and 5% are in Wellington. Reportedly, the WALE of the portfolio is 15 years with a purchase price of AU$58.1 million.

Charter Hall has secured the portfolio off-market via a leaseback and sale agreement. The agreement was directly negotiated between the vendors and the company.

Stock performance

In the last five trading sessions, the share price of CQR has dropped by around 1.24%. In last six months, the shares have fallen 2.21% and year-to-date fall is 8.90%.

In one month, the share price surged by more than 4% and in last 12 months, the share price surged by 6.68% (as of 2:26 PM AEST).

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