Caltex will offload a half stake in 250 service stations around Australia into a listed property trust.
Caltex told the stock market this week it was planning an initial public offering (IPO) in the first half of 2020 for the 49 per cent stake in the fuel and convenience stations after a wide-ranging review of its retail network.
The company said it would retain a majority 51 per cent interest in the 250 sites – half of its current network of 500 core petrol stations nationally – and enter into long-term lease agreements for each service station.
The structure will allow Caltex to keep operational control of its core convenience retail network.
Managing Director and CEO Julian Segal said, “Caltex is focused on unlocking value in our portfolio for shareholders and the segmentation of our network following our convenience retail network review has allowed us to consider a range of options to release capital from our high-quality property assets.”
It is currently selling 50 fuel outlets, mainly in prime inner-city locations across the country, that can be redeveloped into apartments or other uses.
The new property trust will receive rental payments from Caltex of up to $100 million in the first year.
Spinning off freehold property holdings has become a favoured method for large corporations to unlock cash in their business.
Caltex has been busy this year rationalising its network of convenience service stations.
It is currently selling 50 fuel outlets, mainly in prime inner-city locations across the country, that can be redeveloped into apartments or other uses.