AXA Real Estate sells four petrol stations in Spain

AXA Real Estate Investment Managers said its Alternative Property Income Venture (APIV) has sold four petrol stations from its 28-property portfolio in northern Spain.

The petrol stations, which are located in Jaca, Navia, Santander and Tudela, have been sold to a number of local purchasers for a total of EUR 3 mln, representing an average gross return of 27.7%, with the lowest net initial yield totalling 6.9%.

APIV acquired the package in May 2011 in a EUR 55 mln off-market sale and leaseback transaction with the Spanish supermarket and food store retailer Eroski. All 28 of the petrol stations originally acquired had a 20-year triple-net lease with Eroski at the time of purchase. Geographically they are situated in eight different regions in northern Spain.

'The sale of these four assets from the portfolio we acquired last year highlights the returns available from investing in alternative assets classes such as petrol stations,' said Daniel Bowden, fund manager within AXA Real Estate. 'Our aim is to hold the bulk of this portfolio long term in order to capitalise on the highly-attractive income returns it affords.'

The proceeds of the sale have been used by AXA Real Estate to further reduce APIV's debt and to provide enhanced distributions to the Venture’s investors.

APIV was launched in September 2007 and now forms part of AXA Real Estate's Alternative Real Estate Business Line, which was launched in October 2012 to consolidate AXA Real Estate's expertise in this sector. AXA Real Estate aims to double its alternative assets under management to EUR 1.5 bn over the next three years through new third-party mandates and by launching a second pooled investment vehicle.