During 2003/04, Ray White Invest through working with one of its developer clients, was involved in the acquistion and development of three service centre properties. Through this experience, Ray White Invest took the view that this asset class had been overlooked by the institutional investor market and that there was an opportunity to secure a portfolio of high quality fuel based real estate assets that would show both income and capital growth.
As a result the Ray White Invest Service Centre Trust (the Trust) was launched in November 2005 to invest in high quality highway and neighbourhood service centres. The first portfolio of properties purchased on or around 31 December 2005 and March 2006, comprised three highway service centres and three neighbourhood service centre properties. In August and September 2006, the Trust acquired a further six properties of which five are neighbourhood service stations and one is a highway service centre. At the end of 2007, the Trust comprised 12 properties spread across Victoria and Queensland with a total portfolio value of $58m.
The investment strategy of the Trust is to secure high quality fuel based real estate assets where the potential exists for growth in fuel and retail turnover which should support an increasing rental stream. The stable returns combined with an investment strategy to grow unit holder value through value add opportunities on the existing portfolio and through the acquisition of further properties that meet the Trust’s investment criteria has been widely supported by investors. In early 2007, the Trust had in excess of 100 unit holders ranging from retail investors to listed property security funds.
See press articles: