Kout Capital has recently acquired a portfolio of four modern petrol filling stations (“Octane Portfolio”) from Investra for £10.7 million. The purchase was completed on behalf of Kout Capital’s clients alongside senior finance provided by a Middle Eastern relationship bank.
The Octane Portfolio is a freehold, well-secured portfolio of four petrol filling stations with attractive convenience stores providing additional services such as ATMs and delivery/collection points, strategically located in the Midlands and southern parts of the UK. The portfolio is 100% let on long leases with the forecourts being operated by well-established and financially secure companies with strong covenants: Rontec Roadside Retail Limited who operate Esso petrol filing stations with Shop’N Drive and Morrisons convenience stores; and Co-operative Group Limited who operate as Co-op branded filling stations and Co-op convenience stores. Overall, the assets’ WAULT to expiry is approximately 14.5 years. The portfolio produces a strong cash yield that is secured by long term rental income benefiting from fixed 2% annual rent increases.
Investment management initiatives for this portfolio includes overseeing asset management and rent collection and ensuring that these are carried out properly to maximise running yield to investors, ensuring that the properties are adequately insured, establishing contact and establishing a relationship with the tenants to ensure optimal property management, buildings maintenance, environmental maintenance and compliance and potential strategic improvements that could increase capital value as well as considering any additional value which could be gained relating to adjoining land, electric vehicle chargers and other potential market changers.
Penningtons Manches Cooper LLP provided legal services for the portfolio acquisition and financing and CBGA Robson were appointed as managing agents.