Barber Wadlow’s Forecourt Property Value Index* (in association with Experian Catalist) recorded a 3% value increase in 2019, the eighth consecutive year of growth. The Index has now achieved a 38% increase over the past five years.
Barber Wadlow director, Adam Wadlow, says: “Capital value growth of petrol filling stations was witnessed in 2019, driven in part by enhanced profitability. The rate of growth at +3% was ahead of 2018 (+1%), but somewhat below the substantial levels of value appreciation recorded between 2013 and 2017.
“In addition to improved trading performance, a lack of supply of available businesses to buy is also underpinning values. Barber Wadlow estimate that 175 petrol filling stations were transacted in 2019, a 10% decline on 2018 (excluding the MFG/MRH transaction).”
The year started with the completion of MFG’s divestment programme then the Group acquired Simon Smith Retail, then Symonds Retail.
Wadlow says Philips 66’s acquisition of Harrogate Investments Limited demonstrated fuel suppliers’ desire to build a retail platform. And Certas also acquired sites.
“Single sites also continue to appeal to a wide range of buyers depending upon business type and geography. In 2019, Barber Wadlow sold/let single sites to Euro Garages, Welcome Break, Platinum Retail, Savile Petroleum and Gardner Garages.”
Wadlow says demand is also increasing for new-to-industry (NTI) development sites, despite their completion being a lengthy process.
[source: Forecourt Trader online]