- Waypoint REIT (WPR) has agreed to sell 31 non-core fuel and convenience assets for a total acquisition price of $113.9 million to Fawkner Property
- This represents a 10.1 per cent premium over WPR's carrying value of $103.4 million as of December 31 2020
- Following completion of the Fawkner transaction, WPR will have sold 34 non-core assets year-to-date for a combined price of $121.9 million
- Waypoint CEO Hadyn Stephens says the transaction represents a compelling opportunity to realise attractive prices on non-core assets
- Shares in Waypoint are up 4.37 per cent, sitting at $2.63
Waypoint REIT (WPR) has agreed to sell 31 non-core fuel and convenience properties to Fawkner Property for a total purchase price of $113.9 million.
This represents a 10.1 per cent premium over WPR's carrying value of $103.4 million as of December 31 2020.
The Fawkner deal is subject to rights of first refusal (ROFR) in favour of Viva Energy Australia and Coles Group, which give Viva and Coles a 30-day window to buy any of the properties on the same terms as Fawkner.
Twenty nine assets ($102.7 million combined purchase price) will settle in three tranches by the end of October, assuming the ROFR provisions are not exercised by Viva or Coles.
The remaining two assets ($11.2 million combined purchase price) will settle 10 business days after WPR is able to provide clear title to these assets.
Following completion of the Fawkner transaction, WPR will have sold 34 non-core assets year-to-date for a combined price of $121.9 million, representing a premium of 10.9 per cent to WPR’s prevailing carrying value.
A further twelve assets (eight regional and four metropolitan) with a combined book value of $35.3 million have been identified as non-core and will be held for sale in WPR’s accounts at 30 June 2021.
WPR intends to market these assets for sale in the second half of 2021.
Waypoint has completed its valuation process for June 30 2021, with independent values on 82 properties and director's valuations on 388 properties (including the Fawkner properties, which have been revalued in line with the agreed selling price).
Due to a mix of contracted yearly rental increases and capitalisation rate compression, a gross value uplift of $189.8 million was recorded for the six months to 30 June 2021.
Waypoint CEO Hadyn Stephens said the transaction represented a compelling opportunity to realise attractive prices on non-core assets and improve overall portfolio quality.
"WPR will continue to evaluate opportunities to sell assets where we believe that it is in the best interests of securityholders to do so," he said.
"The proposed capital management initiatives also reflect our commitment to responsible stewardship of our investors’ capital, allowing WPR to return capital in excess of current requirements whilst maintaining a strong financial position to capitalise on investment opportunities that may arise in the future, noting that selective acquisitions and reinvestment in our core portfolio remain key components of our strategy moving forward."
Shares in Waypoint were up 4.37 per cent, sitting at $2.63 at 3:36 pm AEST.