The vision & strategy of the Australian Fuel Fund is to maximise investor returns through building asset ownership in an industry that is anchored by top tier fuel companies as tenants and to build scale both within and across the retail fuel market. Essential Service Investment:
Australia’s retail fuel sector is getting more than its share of attention in 2021 thanks to its ability to operate un
interrupted throughout the pandemic as an essential service. This stability, coupled with the long-term nature of tenancies and the sector’s growing market share in convenience retail, is helping to drive the strongest demand for retail fuel assets in years. Retail fuel assets are securing lease terms of up to 10 to 20 years, with quality national tenants such as 7-Eleven, Viva Energy and United Petroleum bolstering their convenience retail service. Essential service assets remain investor favourites, demonstrating an ability to trade strongly throughout the pandemic. Fuel was one of the standout performers in our most recent auction in early August and I would expect the same again, with most (if not all) likely to be purchased sight unseen. Source: https://www.burgessrawson.com.au/news/strong-fundamentals-fuel-demand-for-service-stations/
The Australian Fuel Fund
The vision & strategy of the Australian Fuel Fund is to maximise investor returns through building asset ownership in an industry that is anchored by top tier fuel companies as tenants and to build scale both within and across the retail fuel market. Accumulating a strong portfolio that will mature to achieve the targeted returns. The Fund will aim to achieve, a total return of equity of 8% p.a. (before tax but after fees and costs), comprising of targeted 6% p.a. distributions to unitholders and capital growth. Secure and Stable Opportunity
Major fuel tenants within the Australian retail environment typically enter into long term rental agreements providing a secure and stable opportunity for the the Australian Fuel Fund. Standard rental terms within the industry normally span between 10-15 years, with additional options of 3 x 5 years. It is the management team's opinion that an asset class anchored by large global and national
companies will underpin the strength and opportunity of the Fund platform. Evolving Industry
The global fuel industry understands electric and Hydrogen cars are, and should be, a part of the future and fuel retailers are well placed to evolve the offer on their sites to meet this growing shift. All major fuel retailers are already implementing and planning for a greener future and the offers available on the existing sites will change to meet the needs of their customers, as they always have. It is the management team's opinion that the rise in electric vehicles is occurring
gradually enough for fuel outlets to evolve. On average Australians retain their cars for seven years, and they typically go in two cycles before being disposed. Currently electric vehicles make up 0.07% of new car sales and need to cycle into the market. So electric vehicles are not going to have a significant impact for 15-20 years. Take your place in this exciting investment opportunity
The Australian Fuel Fund is open for investment. The Investment Management team look forward to taking the journey with you as we build a successful and rewarding portfolio of sites. The purchase of the Stawell site is an exciting new addition to the fund. Please feel free to contact the Investment Manager directly to obtain additional information or meet with the members of the Management team. Please email through your queries to [email protected]
Disclaimer
Guildfords Funds Management ACN 602 779 993 AFSL 471379 is the Trustee of the Australian Fuel Fund. This document has been prepared by CBSM Pty Ltd ACN 639 001 362, the Investment Manager of the Fund and is an authorised representative of the Trustee. To the maximum extent permitted by law the information contained in this email is given without any liability whatsoever to Trustee and Manager or their respective directors or officers. This email is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, express or implied, is made as to the accuracy, completeness or thoroughness of the content of the information. The recipient should consult with their own legal, tax or accounting advisers as to the accuracy and application of the info contained herein and should conduct their own due diligence and other enquiries in relation to such information. Neither the Trustee nor the Manager guarantees repayment of capital or any particular rate of return from the Fund. The information contained in this email is not investment or financial product advice and is not intended to be used as the basis for making an investment decision.
