Peregrine Corporation has sold a portfolio of freehold convenience retail outlets in South Australia for a combined $24.645 million, achieving an average yield of 5.5 per cent.
The sale, managed by Burgess Rawson’s Jamie Perlinger and Raoul Holderhead, included high-performing assets with long-term leases to major tenants. The most significant transaction was a $13.8 million sale of a Viva Energy service station on Port Road, West Croydon. The property features an 18-year triple net lease with options extending to 2077 and additional tenants, including Subway, Krispy Kreme, and a telecommunications retailer.
Holderhead said the portfolio attracted strong interest, with 326 enquiries and 16 registered buyers.
“The West Croydon asset alone received nine offers during the Expressions of Interest campaign. These results highlight the strength of South Australia’s convenience retail market and the ongoing appeal of assets with secure, long-term income streams.”
He added that the triple net lease structure was a key selling point.
“Being South Australian assets, there is no stamp duty payable on the purchase. This combined with a triple net lease means that the buyers will receive an attractive yield.”
Other notable sales included a Kensington Road, Marryatville site for $4.88 million, leased to Viva Energy for 15 years with options extending to 2074, and a Main South Road, Darlington property for $6.015 million, offering a 16-year lease to Viva Energy, alongside Subway and a car wash on a 4,245 sqm site.
Michael Dodd, CFO at Peregrine Corporation, said the sale aligns with the company’s strategy to reinvest in new ventures.
“South Australia’s commercial property market remains strong, bolstered by initiatives such as the removal of stamp duty, which continues to drive investor interest.”
Perlinger noted the increasing demand for convenience retail investments.
“These assets offer a combination of strong tenancies, prime locations, and secure leases, making them highly sought after in today’s competitive market.”
Peregrine Corporation, based in Adelaide, is known for its OTR brand, which was sold to Viva Energy in 2023.
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