Media Release: Avenue Capital Managers Launches Unique Retail Petroleum Fund To Initially Raise $7.65 Million
Avenue Capital Managers, in conjunction with CoBrand Group, Nexia Melbourne, Guildfords Funds Management, and Bourse Communications, are pleased to announce the launch of the Retail Petroleum Fund (“RPF” or “the Fund”).
Retail Petroleum Fund’s vision is to become an Australian leader in the ownership of retail fuel sites. This will be achieved by establishing a revenue stream of long term rental returns from nationally and globally positioned major anchor tenants and the ability to grow stakeholder wealth through building scale both within and across the retail fuel market.
The current offering in Stage One is to raise up to $7.65 million. Further raisings for the Fund will follow.
The Fund is an open-ended unlisted unregistered wholesale managed investment scheme structured as a unit trust established by the Trustee pursuant to the Trust Deed and is governed by Australian law. The Fund aims to achieve a 10% return on equity per annum.
Ownership of Australian retail fuel sites across the country is at the beginning of a major paradigm shift that is already being witnessed around the globe. Over the past few years, the Australian retail fuel industry has undergone significant transformational change with new competition entering the market. As a result, the industry has experienced strong levels of growth, expanding at 2.4% annually.
The current strategy of major owners in the industry is to grow their market share through acquiring ‘Greenfield’ developments rather than the Fund’s strategy of securing existing Projects and then improving and value adding to the development thus creating and maximising new revenue streams from each selected site.
The Australian ownership of retail fuel assets is currently very fragmented, it is estimated that 50% of the freehold sites are owned by high and medium wealth individuals or small syndicated ownership structures. This provides the fund the opportunity to build a portfolio of sites with current market rental returns and then increase the value of those sites where appropriate through proven “Unlocking” and “Value Adding” programs.
RPF considers this an opportunity to build a large portfolio of developed sites and sees no barriers to prevent the Fund from scaling to become one of the largest freehold site owners within Australia.
Norm Coyle, Founder of the Fund’s Development Manager, CoBrand Group and Chairman of the Fund’s Investment Committee said:
“We are delighted to be launching the Retail Petroleum Fund, and the Investment Committee and I believe this capital raising will turbocharge the Fund’s growth to help achieve our vision.
“The vision of the Fund is to maximise investor returns through building asset ownership in an industry that is anchored by major global companies as the tenant and to build scale both within and across the retail fuel markets.
“We believe that many of the estimated 7,100 retail fuel sites have not yet been developed to their full potential, and we have an extensive short, medium and long term plan to develop these sites and become an Australian leader in the ownership of retail fuel sites.”
The Retail Petroleum Fund will begin its Digital Investor Roadshow on Monday 11th May. The Fund’s Trustee is Guildfords Funds Management. The Trustee has appointed Avenue Capital Managers to be the Investment Manager of the Fund. The Trustee has also appointed Nexia Melbourne as the Fund Administrator, and CoBrand Group as the Development Manager. The Management group has engaged the services of HWL Ebsworth Lawyers with their vast experience in establishing similar well-structured funds.
For more information, or to download a copy of the RPF Investor Memorandum, go to – http://retailpetroleumfund.com.au/investors/
For further information please contact:
For further information please contact:
Rod North, Managing Director,
Bourse Communications Pty Ltd
T: (03) 9510 8309, M: 0408 670 706,
E: [email protected]