Peregrine Corporation, one of Australia’s top 500 privately-owned companies, is selling three premium freehold convenience retail outlets in South Australia which are expected to generate more than $23 million, according to Burgess Rawson.
Exclusively listed with Burgess Rawson’s Jamie Perlinger and Raoul Holderhead, the properties present an exciting opportunity for investors to acquire high-performing assets in prime locations.
Peregrine Corporation CFO Michael Dodd said the timing is right to list the assets, which have strong long-term leases in place, making them highly appealing to investors. The pending sales will enable the company to recycle its capital into other avenues.
“South Australia’s commercial real estate sector is performing well, with the removal of stamp duty playing a key role in its demand,” he said.
Mr Perlinger noted that, with secure, long-term leases and a solid reputation in the retail sector, these outlets are well-positioned to meet the increasing demand for strategically located convenience stores, offering promising returns in a thriving market.
Mr Holderhead said demand for convenience retail outlets has gained momentum, with 2024 witnessing sharper returns compared to the previous year.
The premium asset on Port Road, West Croydon, is leased to Viva Energy on a new triple net head 18-year lease with options extending to 2077. Other businesses onsite within the head lease include Subway, Krispy Kreme retail outlet and donut production facility, and a telecommunications tower. The total net income is $759,802 per annum.
Mr Holderhead said the best thing about this asset is arguably its triple net lease because it transfers the responsibility for outgoings, maintenance, and insurance to the tenant, providing greater security and reduced management for the owner.
On Kensington Road, Marryatville, the Viva outlet is leased for 15 years with options to 2074 and currently provides a net annual rental of $265,691. The Viva site on Main South Road, Darlington, is leased on a 16-year basis at $330,995 per annum and includes Subway and a car wash and is set on a substantial 4245sqm site.
The Marryatville and Darlington assets will be sold at Burgess Rawson’s Portfolio auction event at Crown Casino in Melbourne on October 30, while the West Croydon asset is available through an Expressions of Interest campaign closing November 14.
Headquartered in Adelaide, the highly regarded Peregrine Corporation is well-known for operating the successful OTR brand of service stations and convenience stores, which was sold to Viva Energy last year.
