Growing trend to convenience stores at fuel outlets
SA Property News January 15, 2010

South Africa is following a growing international retail trend towards convenience stores at fuel outlets. This is a trend notably successful in the UK, says Marco Rapaglia, a director of Athanor International Property Investments, which has offices in London and Cape Town with representatives in regions around South Africa.

In a joint venture with Pam Golding Properties, Athanor facilitates UK property investment opportunities for SA and foreign investors, with up to seven properties acquired annually.

Rapaglia says leading local retailers such as Woolworths and Pick n Pay are reaping the benefits of this trend with convenience stores on the forecourts of fuel outlets, capitalising on customers’ growing demand for one stop fuel and food purchases.

“In the UK, where this concept is referred to as the ‘forecourt convenience format’, companies like Tesco Express, Marks and Spencer Simply Food, Sainsbury’s Local, Somerfield Essentials and the Co-operative Societies all compete in this emerging market, which is set to dominate convenience food sales in the future,” he says.

According to international food and grocery expert, IGD, and William Reed Business Media, the UK convenience store market is now worth around GBP29.1 billion a year. IGD’s Evolution of Convenience Retailing report reveals that growth of this sector continues to outpace the growth of the UK grocery market overall and forecasts that the convenience market could be worth in the region of GBP39.7 billion by 2014.

“There are about 8,640 forecourt convenience stores in the UK,” says Rapaglia. “The forecourt convenience market in the UK is expected to exceed growth in the buoyant convenience store market, with sales expected to escalate by some five per cent a year compared to the overall convenience store growth of four per cent.

“This means demand for well situated sites is expected to increase, which has prompted Athanor to acquire one of 85 forecourt convenience stores/mini supermarkets and petrol filling stations operated by Somerfield Stores/Co-operative Group – and which is already attracting interest from SA and foreign investors.

“This property is in a prominent position on Redbourn Road, a major road in Hemel Hempstead which forms part of the London commuter belt and serves residential and industrial areas. It has a busy forecourt and all fuel sales must be paid for in the store which is stocked with a diverse range of goods, and with ample parking for non-fuel buyers,” he says.

“The property has a strong tenant on a long lease – with 18 years remaining, and has been acquired at an attractive yield which capitalises on current market conditions and provides the potential for making an annual cash payment to investors. Returns are projected to exceed 50 per cent over five years, or 10 per cent a year (8.45 per cent compounded),” Rapaglia says.

Retailers capitalise on demand for convenience stores at fuel outlets
The Weekend Argus, 9 January 2010

South African is following a growing international retail trend, notably successful in the UK, towards convenience stores at fuel outlets, says Marco Rapaglia, a director of Athanor International Property Investments.

Athanor has offices in London and Cape Town with representatives in regions around South Africa. In joint ventures with Pam Golding Properties, Athanor facilitates UK property investment opportunities for SA and foreign investors.

Rapaglia says leading retailers such as Woolworths and Pick n Pay are reaping the benefits of this trend with convenience stores on the forecourts of fuel outlets, capitalising on customers’ growing demand for one-stop fuel and food venues.

“In the UK, companies like Tesco Express, Marks and Spencer Simply Food, Sainsbury’s Local, Somerfield Essentials and the Co-operative Societies all compete in this emerging market, which is set to dominate convenience food sales in the future, “ he says.

According to international food and grocery expert, IGD, and William Reed Business Media, the UK convenience store market is now worth around £29.1 billion (about R341.7bn) a year.

“There is about 8 640 forecourt convenience stores in the UK,” says Rapaglia. “The forecourt convenience market in the UK is expected to exceed growth in the buoyant convenience store market, with sales expected to escalate by some five percent a year compared with the overall convenience store growth of four percent,” he said.

“This means demand for well situated sites is expected to increase, prompting Athanor to acquire one of 85 forecourt convenience stores/mini supermarkets and petrol filling station operated by Somerfield Stores Co-operative Group.

“This property is in a prominent position on Redbourn Road, a major road in Hemel Hempstead which forms part of the London commuter belt and serves residential and industrial areas. It has a busy forecourt and all fuel sales must be paid for in the store which is stocked with a diverse range of goods, and with ample parking for non-fuel buyers.

“The property has a strong tenant on a long lease – with 18 years remaining, and has been acquired at a attractive yield which capitalises on current market conditions and provides the potential for making an annual cash payment to investors.

“Returns are projected to exceed 50 percent over five years, or 10 percent a year (8.5 percent compounded),” Rapaglia says.

Attractive UK Returns for Athanor International Property Investments
My Property, November 6, 2009

Amid a globally depressed property market characterised by considerably reduced property values, Athanor International Property Investments has achieved a notable return of 37 percent for investors on a UK commercial property which was recently sold – Benbow House in central London.

In a joint venture with Pam Golding Properties (PGP), Athanor facilitates quality UK property investment opportunities for South African and international investors on an ongoing basis, with up to seven prime located properties acquired annually.

Comments Eric Mounier, CEO of the Athanor/PGP joint venture: "Following the global credit crunch and in a market which has seen property values declining by some 44 percent over the past 28 months, the achievement of a 37 percent return for investors in this central London property is significant. Acquired five years ago, the property is in a prime location at Southwark Bridge, London SW1 and is tenanted by Pizza Express and Starbucks, as well as a residential component above. The property has always been fully tenanted and the major lease is for a period of 25 years – with 18 years still to run.

"While outstanding returns of between 14 and 48 percent per annum were achieved by Athanor for properties sold in the up-cycle between 2004 and 2007, Benbow House was sold in the worst market conditions experienced since the 1930's. This clearly illustrates the importance of acquiring quality assets typified by favourable locations, strong tenants and long leases," says Mounier.

Given the fact that property values have reduced considerably, opportunities exist to acquire sound properties in the UK at very favourable prices. From a South African investor perspective this is coupled with the fact that exchange controls have been relaxed, enabling individuals to take out an offshore allowance of up to R4 million, increased from R2 million.

"Consumer confidence is returning and the UK is showing signs of recovery and re-emerging as an attractive option for medium to long term investors. The IPD (Investment Property Databank) commercial property index reveals upward movements in capital values in August and September 2009, the first time in over 26 months. We believe this indicates the start of an upward cycle during which investors buying blue-chip, prime located properties in the current depressed market will achieve exceptional returns over the next three to five years," says Mounier.

Athanor's latest acquisition offers investors the opportunity to acquire a stake in a prime positioned convenience store with a petrol station in Hemel Hempstead, a thriving commercial centre and affluent commuter town just 22 miles north-west of central London. The property is let to Somerfield Stores Ltd – with fixed annual rental increases and 18 years unexpired lease, and with guarantees from Co-operative Group, the UK's largest mutual retailer with sales in excess of GBP10 billion. Over the past decade the convenience store market has experienced significant growth.

Says Marco Rapaglia, director of Athanor: "This property has excellent investment potential, underpinned by the rising demand for fuel and continuing expansion of the forecourt convenience store market."

Attractive UK returns for Athanor as confidence returns to the market
The Argus, November 2009

Athanor International Property Investments has achieved a return of 37 percent for investors on a UK commercial property which was recently sold – Benbow House in central London.

The joint venture with Pam Golding Properties offers up to seven prime UK properties a year to investors. Eric Mounier, chief executive officer of the venture, said: “In a market where property values have declined by more than 40 percent over the past 28 months, the achievement of a 37 percent return in this central London property is significant.

“The property was acquired five years ago. It is in a prime position at Southwark Bridge, London SW1, and is tenanted by Pizza Express and Starbucks, with a residential component above. The property has always been fully tenanted and the major lease is for 25 years – with 18 years still to run.

“Benbow House was sold in the worst market conditions experienced since the 1930s. this clearly illustrates the importance of acquiring quality assets typified by favourable locations, strong tenants and long leases.”

Mounier said that property prices had fallen considerably and good opportunities existed for acquiring sound properties in the UK. For South African investors exchange controls had been relaxed, enabling individuals to take out offshore allowances of up to R4 million, increased from R2m.

“Consumer confidence is returning and the UK is showing signs of recovery and re-emerging as an attractive option for medium- to long-term investors.

“The Investment Property Databank commercial index revealed upward movements in capital values in August and September 2009, the first time in over 26 months,” said Mounier.

Athanor’s latest acquisition offers investors the opportunity to acquire a stake in a convenience store with a petrol station in Hemel Hempstead, a thriving commercial centre and affluent commuter town 35km north-west of London.

The property is let to Somerfield Stores – with fixed annual rental increases and an 18-year unexpired lease. Over the past decade the convenience store market has experienced significant growth.

Many happy returns
The Property Magazine, p 83

SA investors achieved a notable return of 37% when the London commercial property, Benbow House, was sold recently. The sellers, Athanor International Property Investments, who are in a joint venture with Pam Golding Properties, facilitate quality UK property investment opportunities for SA and international investors. Despite the economic downturn, Athanor has provided investors with considerable returns, but the return on Benbow House was exceptional. Acquired five years ago, the building is located at Southwark Bridge and boasts tenants including Starbucks and Pizza Express. “The property was sold in the worst market conditions experienced since the 1930s” says Eric Mounier, CEO of the Athanor-PGP joint venture. “This clearly illustrates that opportunities do exist to acquire sound properties in the UK at very favourable prices.” Right now, SA investors are smiling all the way to the bank – exchange controls have been relaxed, so individuals can now take out an offshore allowance of up to R4-million. “The UK is showing signs of recovery an re-emerging as an attractive option for medium- to long-term investors. This indicates the start of an upward cycle when investors buying blue-chip, prime-located properties will achieve exceptional returns over the next three to five years, “ Eric adds.

Athanor International Property Investments/Pam Golding Commercial Sound returns
Cape Times, 6 June 2007

The UK commercial property market continues to yield sound returns for investors around the globe, according to a report issued by a joint venture between Athanor International Property Investments and Pam Golding Commercial. This popular Hartlepool property in the UK, which was tenanted on long leases by well known-brands Vue Cinemas, Pizza Hut and KFC, was recently disposed of by Athanor Investments on behalf of its investors.

Joint venture reports high UK returns
The Weekend Argus, 8 July 2006

Investing in prime commercial property in England is “fundamentally low-risk” and produced large returns

United Kingdom buildings targeted in a joint venture between Pam Golding Commercial and Athanor International Property Investments continue to yield high returns.

An investment in a blue-chip building in Sheffield produced growth in excess of 31% a year over a four-year period, according to chief executive of the Athanor/Pam Golding venture Eric Mounier.

“Acquired in June 2002, this property, which is in a prime location in the city of Sheffield and tenanted by Alliance & Leicester, a FTSE 100 company, was sold in May 2006.

“These exceptionally high returns considerably exceed the original projections of 17% per annum, and highlight the excellent results the venture is achieving – in pounds and in a low-risk environment,” Mounier said.

“The partnership’s ongoing commitment is to source, research and deliver prime investment quality commercial properties in excellent locations abroad with the added security of strong tenants.

“The success being achieve continues to attract an exclusive worldwide group of clients into repeat investments, underlining their ongoing investor confidence in such investments,” Mounier added.

Since January this year, the joint venture has bought five high-quality commercial investment properties, all of which are situated in prime locations in the UK, and have a combined value in excess of £25million.

Mounier said similar opportunities were being pursued in the growing German market, with the focus on new retail commercial centres what were well located and had strong tenants and long leases.

Low risk UK commercial property yields high returns
EPROP.co.za Commercial Property Marketplace, 26 June 2006

Intro
Fundamentally low-risk commercial property investment in prime UK buildings continues to yield high returns

Fundamentally low-risk commercial property investment in prime UK buildings continue to yield high returns, and in line with this, the JV between Pam Golding Commercial and Athanor International Property Investments ahs announced that it has achieved returns in excess of 31 percent per annum over a four year period for investors in a blue chip building in Sheffield.

Comments Eric Mounier, CE of the Athanor/Pam Golding Commercial JV: “Acquired in June 2002, this property, which is in a prime location in the city of Sheffield in the UK and tenanted by Alliance & Leicester, a FTSE 100 company, was sold in May 2006. These exceptionally high returns considerably exceed the original projections of 17 percent per annum, and highlight the excellent results the JV is achieving for investors – in UK currency and in a low risk environment.

“The JV’s ongoing commitment is to source, research and deliver prime investment quality commercial properties in excellent locations with strong tenants, and the success being achieved continues to attract an exclusive worldwide group of clients into repeat investments, underlining their ongoing investor confidence in such investments and the JV itself,” adds Mounier.

Since January 2006, the JV has purchased for investors five high quality commercial investment properties, all of which are situated in prime locations in the UK, and have a combined value in excess of GBP25 million.

Similar opportunities are being pursued in the growing German market – with the focus on new retail commercial centres that are well located, with strong tenants and long leases.

In the UK, the strong property market has seen many of the city centres experience substantial growth and regeneration and this is expected to continue to influence the demand for investments in commercial property.

According to the property review from the Royal Institution of Chartered Surveyors, expansion in the business and financial sectors has helped demand for office space, raising confidence in the outlook for office rents which are already at their highest level since 2001. While retail sales remain subdued, the market for well located and tenanted retail properties continues to enjoy strong demand. According to research from Investment Property Databank, commercial property values grew by 12.7 percent in 2005 after similarly impressive growth of 11.4 percent in the previous year, indicating that this remains a strong investment class.

Point of View
Icon Magazine 2005

On the subject of commercial property, the joint venture between Pam Golding Commercial and Athanor Property Group continues to offer an interesting and strong performing offshore investment opportunity to South Africans, one that is at present outperforming the popular London buy-to-let residential market.

We continue to internationalise the Pam Golding brand with joint ventures such as Athanor, through our ongoing association with Savills International, through the establishment of offices and franchises in Europe and through the ongoing sale of international private property and developments in the UK…..