The result is particularly eye opening when compared to other fuel sales in 2023, with the BP trading on a tight passing yield of 5.16%. Stonebridge noted that the sale concluded a month after running a confidential process with 3 select parties.
The purchaser was a Victorian farming family who settled within 28 days, they were attracted to the quality of the covenant together with the growth forecasted in the area.
Rorey James from Stonebridge’s National Investment Sales team, who handled the sale with Kevin Tong and Justin Dowers, said “whilst interest rates were putting pressure on yields, there was still plenty of cash in the market looking for safe haven type assets similar to BP Wollert. This family in particular is wanting to continue buying high quality investments in Victoria, among a few other farming families with similar investment mandates.”
He added, “whilst interest rates and general market views were pushing a number of buyers out of the market, there were plenty of savvy buyers seeing opportunity at present, given the lower levels of competition.”