Slow electric charge will keep petrol-powered service stations in business

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Australia’s gas guzzling vehicle fleet - one of the most polluting in the world thanks to our love of 4WDs and utes - keeps rental income ticking over in the country’s vast network of petrol stations

Property investor Bessim Saad is confident the 7-Eleven run petrol station he purchased for $3.2 million earlier this year will survive the electric vehicle onslaught.

Activity in the sector is starting to pick up again after several years of fuel retailing disruption. Fuel sales dipped as COVID restrictions kept people at home and slumped again this year, when the war in Ukraine sent energy prices soaring. The market uncertainty hasn’t stopped one of the country’s largest property funds, Charter Hall, inking deals worth more than $270 million this year through its Charter Hall Retail REIT with BP, Ampol, Gull and Z Energy to acquire or gain exposure to multiple service stations in Australia and New Zealand.

“Because it has taken such a long time to act on vehicle emissions, Australia is in a difficult policy position. Australia’s fleet is so far behind other regions, like the EU, it cannot immediately rush in the same standards.” Waypoint’s boss Hadyn Stephens said the trust’s primary long-term focus is on owning sites that are well-placed to navigate the energy transition.

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